Africa-Press – Liberia. The President’s statement—made without offering any documented evidence—has sparked public concern, with critics questioning the decision to publicly address such a serious issue based on hearsay.
President Joseph Nyuma Boakai has directed the Central Bank of Liberia (CBL) and the Liberia Revenue Authority (LRA) to investigate and assume control of a purported 20% stake in Lonestar Cell MTN Mobile Money, allegedly held in trust for the Liberian people.
The President made the surprising revelation during his monthly cabinet meeting on Monday, disclosing that an investor, reportedly linked to the company, informed him in Accra, Ghana that 20% of the company’s shares rightfully belong to the government or citizens of Liberia.
According to President Boakai, the investor’s claim suggested that although Lonestar Cell MTN Mobile Money has recognized the existence of the shareholding arrangement, it has failed to disclose or surrender the government’s portion. The President indicated this has led to tension between the Liberian subsidiary and its parent company over transparency issues.
“They believe that the other 20% has been given to people they cannot identify,” President Boakai said.
“If 20% was given to individuals, that should not be a corporate issue. We should decide who that goes to. Those resources are for this government. It should come to government and the government will use it for the purpose of the country.”
President Boakai vowed to escalate the matter if the company refuses to comply or fails to identify those benefiting from the alleged stake.
Public Concern Over Unverified Claims
The President’s statement—made without offering any documented evidence—has sparked public concern, with critics questioning the decision to publicly address such a serious issue based on hearsay. Observers warn that such speculation could negatively impact investor confidence, particularly as Liberia works to attract more foreign direct investment and strengthen its domestic revenue base.
The Boakai administration, facing significant U.S. aid reductions, has launched an aggressive domestic revenue mobilization strategy to finance government programs. The probe into alleged state assets is seen as part of that broader agenda.
As of Tuesday, neither the CBL nor the LRA had issued statements confirming or clarifying the President’s directive or the current ownership structure of Lonestar Cell MTN Mobile Money.
Lonestar Cell MTN, a subsidiary of South Africa-based MTN Group, is Liberia’s leading telecom and mobile money provider. The company has not responded publicly to the President’s remarks.
CBL Under Pressure Amid MTN Non-Compliance Allegations
Meanwhile, the Central Bank of Liberia is under scrutiny amid reports that top MTN executives are currently in Monrovia seeking to bypass government regulations, specifically a CBL mandate requiring the establishment of a Board of Directors for the Mobile Money unit.
FrontPageAfrica has learned that MTN has failed to comply with this longstanding directive, allegedly due to concerns that it would not retain a majority on the board. Despite repeated warnings and at least two fines imposed by the CBL, MTN has reportedly continued operating without a board, instead leveraging informal channels with top Liberian officials to avoid compliance.
In 2013, the CBL mandated that 20% of MTN Mobile Money shares be allocated to four or more Liberians. Though MTN has repeatedly assured the CBL that it is in compliance, sources tell FrontPageAfrica this has not been the case for more than a decade.
“MTN has refused to set up the Board of Directors because they wouldn’t have a majority on the Board,” a source familiar with the matter said.
According to multiple sources, the CBL gave the company a deadline that expired on May 9, 2025, which MTN failed to meet.
“They were fined and still have not complied. Instead of stepping in to appoint a temporary board, the CBL is again meeting with them today,” a source told FrontPageAfrica Tuesday evening.
“They’re doing this everywhere, and other regulators are taking firm action. A typical example is Ghana. Why must Liberia always go against its own people for a small amount of money?”
Ghana Moves to Enforce MTN Compliance
In contrast to Liberia’s handling of the matter, MTN Ghana is taking concrete steps to comply with local laws.
According to reports by myjoyonline.com, under Ghana’s Payment Systems and Services Act, mobile money operators are required to have a minimum of 30% Ghanaian ownership. MTN Ghana’s mobile money subsidiary, MobileMoney Ltd (MML), currently falls short of this threshold and faces a June 13, 2025 deadline to comply or risk severe regulatory sanctions—including a potential shutdown.
To meet the requirement, MTN Ghana plans to dissolve MML and transfer its assets and staff to a new local entity, “New FinCo.” A trust will hold 32.13% of New FinCo on behalf of Ghanaian minority shareholders, mirroring their current interest in the parent company, Scancom PLC. The remaining 67.87% will be held by the MTN Group.
The reorganization—dubbed the “MML Localization”—is expected to occur in two phases, starting with achieving 30% Ghanaian ownership through Ghana Stock Exchange trades. The second phase involves a legal merger between MML and New FinCo, pending regulatory approvals.
MTN has also announced plans to list New FinCo on the Ghana Stock Exchange within three to five years.
An Extraordinary General Meeting has been scheduled for May 21, 2025, to brief shareholders on the restructuring process.
Double Standards?
Industry observers are questioning why the Central Bank of Liberia appears to be courting MTN, while Ghanaian regulators are forcing the company into compliance. They argue that Ghana’s actions are expected to increase government revenue, while Liberia’s leniency could result in the continued loss of potential national income.
Across Africa, MTN has faced mounting criticism for allegedly sidelining minority shareholders and undermining regulatory authorities in countries including Ivory Coast, Ghana, Guinea, and Cameroon.
Efforts to reach officials at the Central Bank of Liberia for comment were unsuccessful as this report went to press.
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