By Bill W.Cooper
The Liberian Senate has called for a comprehensive review, subject to rectification or cancellation of the contract between the government and MedTec, at the Freeport of Monrovia.
However, the Senate’s decision comes in response to allegations that MedTec has grossly violated the terms of its agreement, prompting the senators’ anger to call for rectification or potential cancellation of the contract.
The action also follows a series of hearings and investigations that revealed troubling discrepancies in MedTec’s operations and commitments to the government and citizenry as enshrined in its agreement.
It can be recalled that the Coalition for Democratic Change (CDC) led-government of ex-President George Weah, signed a 10-year contract with Medtech in July 2021 to conduct Destination Inspection of containers and to provide Verification of Conformity services at the Freeport of Monrovia.
The company that replaces BIVAC whose contract with the government expires in July 2021, stands accused of allegedly being awarded a “dubious and questionable” contract worth US$ 18 million with the government and the establishment of a secret financial account in Dubai unknown to the other parties involved with the deal.
MedTech Scientific Dubai, is the parent company for both local MedTech companies, including MedTech Scientific Liberia, Limited; the local Liberian registered Special Purpose Vehicle (SPV) executing company of the contract; and the CEO of MedTech Scientific Inspection Services, another Liberian registered company that implemented the same DI contract while the owners of the local SPV (MedTech Scientific Liberia, Limited) were in dispute.
But in its report to plenary, the committee headed by Gbarpolu County Senator, Amara Konneh said during its investigation, they managed and thoroughly reviewed all relevant documentation and testimonies related to the Destination Inspection (DI) Contract with MedTech Scientific Dubai Limited.”
According to the Senate Ad-hoc Committee, its recommendations are being submitted based on substantial findings of mismanagement, legal violations, and contractual non-compliance.
The Committee noted, “We therefore recommend the immediate contract review and renegotiation or cancellation, allowing the Executive to immediately seek the opinion of the Attorney General on the legality of the DI Contract to determine if it should be reviewed and renegotiated to ensure conformity with Liberian laws or canceled considering the violations the Committee has uncovered.”
“Any renegotiation must be subject to the following additional conditions in which the Executive must work with MedTech Scientific Liberia Limited’s partners to resolve their dispute in court to allow for renegotiation to proceed. The renegotiation process must be transparent, with a focus on meeting all requirements of Liberian laws and legislative ratification, increasing the GOL’s share of revenue ratio from above the current 20 percent, significantly reducing the costs of MedTech’s services to businesses, immediately investing in DI infrastructure at the Freeport of Monrovia, and prioritizing Liberian participation in the project implementation,” it said.
The report intoned, “In the event of a cancellation, the Executive must inform the Legislature of the toll that a potential external arbitration might cost the country. These steps will help ensure compliance with Liberia’s laws and protect the doctrine of contract enforcement to improve Liberia’s reputation as a destination for doing business.”
The committee also called for the recovery of Government Funds, ensuring that MedTech Scientific Limited must be held accountable for its management of the Transitory Account.
“Specifically, the company should immediately remit all funds held on LRA’s behalf that were required to be deposited into the Government of Liberia’s Transitory Account at Ecobank Liberia, as explicitly required by the contract.
MedTech must provide the government with complete bank statements detailing all financial transactions from the inception of the account until the date of this report, to facilitate a full audit and recovery of potentially misappropriated funds, the report said.
Meanwhile, the committee is also calling for the full reconciliation of accounts related to the DI contract, stressing that it should be undertaken by the General Auditing Commission.
“This reconciliation will confirm whether the Government of Liberia has received its 20 percent share of the revenues and will help identify any discrepancies or misappropriations and MedTech should provide all financial records, including bank statements, for a transparent review of the funds collected and spent,” the report added further.
