The Liberia Electricity Corporation (LEC) has clarified the circumstances surrounding the temporary closure of its Waterside Customer Service Center between 11:00 a.m. and 12:00 noon, pursuant to an order issued by the Debt Court of Montserrado County, in connection with a monetary claim with penalty in the amount of US$415,327.08, allegedly asserted by ELTEL Network.
According to LEC, the alleged transaction and claim for supplies by ELTEL Network originate from the period 2011. “In 2011, LEC and ELTEL entered into the Monrovia Electricity Grid-Accelerated Transmission and Distribution Expansion Project Contract, under which ELTEL was obligated to supply and install high- and medium-voltage electrical materials. The contract, valued at approximately US$22 million, was formally executed and closed in 2016. Subsequent to the closure of the contract and following three successive management administrations between 2016 and 2022, LEC received a demand letter from ELTEL claiming an amount in excess of US$700,000 for materials allegedly supplied under the 2011 contract.
“Upon review, LEC was unable to trace any record, authorization, or source documentation substantiating the alleged transaction. When requested to produce documentary evidence, ELTEL submitted documents purporting to reflect the supply of low-voltage materials, which were inconsistent with the contractual scope requiring medium- and high-voltage materials under the 2011 agreement that had already been duly closed,” a LEC press release observed.
The release said, “In keeping with its commitment to transparency, fairness, and good faith, LEC engaged in mediation efforts aimed at establishing the factual basis of ELTEL’s claim. The mediation process included the review of additional source documents and an assessment of authorization procedures. No evidence of senior-level approval or contractual authorization for the alleged supply was established.
“In light of these unresolved inconsistencies, and LEC’s position that it could not honor a claim unsupported by traceable contractual records, ELTEL proceeded to file an Action of Debt against the Corporation. Given ELTEL’s assertion that its claim arose from the 2011 contract, LEC applied for the matter to be submitted to arbitration, in accordance with the governing provisions of the said agreement.”
LEC emphasized that neither the current management team nor the present government has entered into any contractual relationship, transaction, or engagement whatsoever with ELTEL Network in relation to this claim.
The court action, according to the release, was procedural in nature and resulted in the temporary closure of the Corporation’s Waterside Customer Service Center. However, the closure was subsequently lifted pursuant to a Stay Order issued by the Justice in Chambers, pending further proceedings arising from a Petition for a Writ of Prohibition filed by LEC’s legal team. Consequently, full access to the facility has been restored, and normal operations have resumed. At no time did this action affect LEC’s power generation, transmission, or distribution services.
“LEC’s current Management remains actively engaged in addressing the matter, including the conduct of a thorough review of historical records, contractual obligations, and claims covering the period 2011–2016, to ensure full compliance with due process and the protection of the Corporation’s legal and financial interests.
“The Liberia Electricity Corporation reaffirms its unwavering commitment to transparency, accountability, and respect for the rule of law. In furtherance of this commitment, LEC will, in due course, provide the public with a comprehensive update, including detailed background on the claim, the Corporation’s legal position, and the steps being undertaken toward resolution,” the release added.
