By Precious D. Freeman
The Government of Liberia, through the Ministry of Justice, has announced the full implementation of the concession agreement with Liberia Traffic Management Incorporated (LTMI), granting it exclusive rights to manage the country’s vehicle and traffic management system.
The decision comes after extensive legal reviews, legislative investigations, and a directive from President Joseph Boakai.
The concession, originally negotiated and ratified in 2018 under former President George Weah, gives LTMI the authority to oversee various traffic management services, including traffic ticketing, vehicle registration, driver’s license issuance, and parking enforcement.
However, the implementation of the agreement was delayed due to a conflicting Public-Private Partnership (PPP) agreement signed with Modern Development Management Corporation (MDMC) in 2020.
LTMI, arguing that the PPP agreement with MDMC encroached upon its rights, filed a lawsuit against the government and MDMC.
The Civil Law Court dismissed the case on procedural grounds, ruling that the concession agreement mandated arbitration.
LTMI appealed to the Supreme Court, but the matter remained unresolved under the Weah administration.
Following the transition to the Boakai’s administration, the government initiated a review of the matter.
The Ministry of Justice, in its legal opinion, concluded that the concession agreement with LTMI held greater legal authority than the PPP agreement with MDMC, as it had been ratified by the Legislature and signed into law.
The Liberian Senate also conducted its own investigation and recommended that LTMI be allowed to proceed with its concession, reaffirming that the Ministry of Transport had erred in signing a conflicting agreement with MDMC.
With both the legal and legislative reviews supporting LTMI’s claim, President Boakai directed the Minister of Justice to implement the concession agreement.
Effective February 3, 2025, all vehicle registrations, driver’s license issuances, and related services will be exclusively handled by LTMI.
The Justice Ministry has outlined the following measures: All vehicle registrations and driver’s licenses must be obtained through LTMI starting February 3, 2025.
The Liberia National Police (LNP) will continue to recognize valid existing documents but will not honor any new registrations or licenses issued by other entities after February 3, 2025.
MDMC has been instructed to wind down its operations.
The move is expected to boost investor confidence in Liberia by reinforcing the sanctity of concession agreements.
However, concerns remain regarding the transition process and potential disruptions in vehicle registration and licensing services.
The decision has been met with mixed reactions from the public and stakeholders.
Some view it as a necessary step to uphold legal agreements and attract foreign investment, while others worry about possible job losses and service interruptions caused by terminating MDMC’s operations.
The Ministry of Justice has urged all affected parties to comply with the government’s directive, emphasizing that the move is in line with Liberia’s legal framework and commitment to upholding contractual obligation.
As Liberia transitions to the new system under LTMI, the government has assured the public that necessary measures will be taken to ensure a smooth implementation process.
The coming weeks will be crucial in determining how effectively the transition is managed and how it impacts traffic management services nationwide.
