Claim: 1. LRA does not purchase cars for government officials; GSA does.
2. According to the law, no vehicle above $45,000 US can be purchased for a minister.
Full Text: On September 23, 2024, Aloysius Howe posted on his Facebook page that the Liberia Revenue Authority (LRA) does not purchase cars for officials of government, instead the General Service Agency (GSA) does.
Howe further stated that according to the law, no vehicle above 45,000 USD can be purchased for a minister.
Howe’s post generated 39 reactions, 81 comments, and a share up to the time of publication.
However, Howe did not state a specific law that places a ceiling on the purchase of vehicles for ministers at US$45,000.
Howe’s post is in connection with Amin Modad, Minister of Commerce and Industry, who has recently come under criticism for allegedly using funds provided by MedTech, a company that is currently ‘undergoing investigation’ to purchase a luxury car.
Modad denied any personal wrongdoing, clarifying that the vehicle in question was purchased for the Ministry of Commerce, with payments made directly to the vendor.
He added that he has been using his vehicles since taking office and covers fuel and driver expenses himself.
Verification: To verify this claim, we first contacted the head of corporate communication at Liberia Revenue Authority (LRA), D. Kaihenneh Sengbeh.
Sengbeh said, “LRA works with ministries and agencies of government in the collection of revenue. In this partnership, we provide technical and logistical support where necessary to have us meet our revenue collection targets.”
He said, “ If and when such support requires a vehicle, and we are fortunate to have the means to provide such support, we do it as long as it boosts revenue collection for the country. But generally, logically, vehicles are purchased based on needs and the proposed use of such vehicles.”
In an earlier response on its social media page, LRA clarified that it had not purchased a vehicle valued at US$150,000 as reported by Modad.
We also reached out to the General Services Agency (GSA) and Procurement Department to verify this claim as well.
Yamah V. Korleh, GSA Procurement Department, told The Stage Media that “the GSA doesn’t have any authority to purchase vehicles for government officials. The GSA had that authority in the past, but since the coming of the Public Procurement and Concession Commission Act, which was approved on September 16, 2010, and printed into a book, the GSA ceased to have such authority.”
Korleh said the authority has been transferred to all government/spending entities to exercise such jurisdiction through their various internal procurement units in full compliance with the PPCC law, adding, ”So, for example, the Ministry of Commerce does their internal procurement.”
TSM also reached out to Daniel Nyakonah, head of communication, Ministry of Finance and Development Planning, to state the ceiling for ministers’ vehicles since Howe did not provide any provision of law to support his claim.
In response, Nyakonah referred this fact-checker to the PPCC to verify the ceiling for the minister’s vehicles but up to the time of publication, the commission’s communication department headed by Nathan Bengu did not respond to our inquiry.
Although Howe did not state the specific law on the ceiling of purchasing vehicles, our research established that Acarous Gray, former District # 8 representative on September 24, 2024, claimed that Modad violated the 2024 Budget Law on procurement of government vehicles.
He cited, “Section 8 (n): Budget Oversight by the Legislature states that:
“All procurement of vehicles in this year 2024, except for the President, Vice President, Speaker, Pro-Tempore, and Deputy Speaker and the Chief Justice of Liberia, shall not exceed US$ 45,000 at duty paid. These measures shall apply to all state-owned enterprises,” the budget stated.
On May 1, 2024, the Senate concurred with the House of Representatives on the passage of the 2024 National Budget, which also ensures that in the procurement of government vehicles in this budget, besides the President, the Vice President, the Speaker, the President Pro Tempore, Deputy Speaker, and Chief Justice shall not exceed forty-five thousand United States dollars.
Conclusion: Based on the research and findings, we conclude that Aloysius Howe’s claim that the GSA has the authority to purchase government vehicles for officials is misleading. However, the claim that no vehicle priced above US$45,000 can be purchased for a minister is correct.
Written by Watson Richard, Grant Fellow
