By Precious D. Freeman
The Supreme Court through its Justice in Chambers, Yamie Quiqui Gbeisay, has ruled in favor of Modern Development & Management Corporation (MDMC), granting a writ of prohibition against the Government of Liberia in a major contractual dispute involving the production of vehicle license plates and the automation of motor vehicle and driver’s license processing.
The case, brought before the Supreme Court in its October Term 2024, stemmed from the government’s decision to unilaterally terminate MDMC’s Public-Private Partnership (PPP) contracts, initially signed in 2020 and 2023, and to retender them.
MDMC, through its CEO, John S. Youboty, argued that the contracts—each with a nine-year duration—were wrongfully terminated without due process, despite the company’s substantial financial investment.
The Government of Liberia, represented by the Ministry of Justice, contended that the contract extensions from five to nine years were irregular and not in compliance with procurement regulations.
The Ministry of Transport, acting upon advice from the Public Procurement and Concession Commission (PPCC), sought to retender the contracts, citing concerns over procedural inconsistencies
The government referenced a 2018 concession agreement between Liberia and Liberia Traffic Management Incorporated (LTMI), which granted LTMI exclusive rights to implement vehicle registration and traffic management systems.
The Ministry of Justice argued that honoring the MDMC contracts would contradict this existing agreement, which had been ratified by the Legislature and signed into law.
After reviewing the arguments, Justice Gbeisay ruled that the government’s actions were arbitrary and in violation of due process. The Court emphasized that: The contracts signed with MDMC were legally binding, and the government had performed under them for years without issue.
If the government deemed the contract duration improper, it should have engaged MDMC in discussions rather than unilaterally terminating the agreements.
Due process is a fundamental right under the Liberian Constitution, and any termination of contracts must follow legal procedures, including arbitration as stipulated in the agreements.
The Court further noted the inconsistency in the government’s arguments, with the Ministry of Transport asserting irregularities in the contract duration while the Ministry of Justice sought to uphold the LTMI agreement.
This contradiction raised questions about the legality of the government’s actions.
With the Supreme Court granting MDMC’s petition, the government is now prohibited from proceeding with the termination and retendering of the contracts.
The ruling reinforces the importance of upholding contractual obligations and ensuring that public procurement processes adhere to legal standards.
The court has ordered all parties to comply with its decision, reaffirming that contract disputes must be resolved through established legal mechanisms rather than unilateral government action.
This ruling served as a significant precedent in Liberia’s judicial landscape, reinforcing the need for transparency and accountability in government contracts.
