Liberia Power Utility Ordered to Pay Swedish Firm

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Liberia Power Utility Ordered to Pay Swedish Firm
Liberia Power Utility Ordered to Pay Swedish Firm

Africa-Press – Liberia. Monrovia-Nearly a decade after a Swedish engineering firm supplied critical electrical materials to Liberia’s state-owned power utility, a Montserrado County court has ordered the Liberia Electricity Corporation (LEC) to immediately pay more than US$415,000, closing a long-running commercial dispute that has come to symbolize deeper concerns about contract enforcement and public-sector accountability in Liberia.

In a payment order issued on February 4, the Debt Court for Montserrado County ruled that LEC is liable to ELTEL Network for a total of US$415,327.08, covering the principal judgment, accumulated interest, legal fees, and court costs.

The ruling followed a hearing held Tuesday, February 3 during which LEC acknowledged liability but failed to formally present a structured repayment proposal to the court.

Court records show that the judgment includes a principal sum of US$364,322, interest amounting to US$21,859.32 calculated at six percent per annum, attorney’s fees of US$7,286.44, and an additional US$21,859.32 in court costs.

The order, signed by Assistant Clerk Hoses Nelson, instructs LEC to make immediate payment to the sheriff of the Debt Court.

It further warns that failure to comply will trigger enforcement actions, including a writ of execution authorizing the seizure of LEC assets to satisfy the debt.

For ELTEL Network, the ruling marks the end of years of legal uncertainty after repeated efforts to settle the matter amicably failed.

The dispute traces back to a 2016 supply contract under which ELTEL Network provided LEC with low-voltage electrical materials essential for power distribution systems, control rooms, lighting infrastructure, and security networks.

These materials formed part of Liberia’s post-war electricity expansion efforts at a time when access to reliable power remained scarce and national reconstruction was still underway.

According to court filings, disagreements later arose over payments for materials delivered under the contract, leading to a prolonged standoff that stretched for years.

ELTEL, the records show, made multiple attempts to resolve the matter outside the courtroom.

Between 2019 and 2020, the Swedish firm reportedly offered to accept a reduced payment of US$360,000, waiving more than US$74,000 in outstanding claims, in an effort to bring the dispute to a close.

In a January 1, 2020 letter addressed to LEC’s then Chief Executive Officer, ELTEL cited earlier commitments made by the utility to settle the debt.

When those commitments did not materialize, the company turned to the courts.

At Tuesday’s hearing, LEC proposed making a 25 percent down payment, approximately US$103,832, toward settling the judgment.

However, the proposal was not formally submitted through a motion requesting a structured payment plan, leaving the court with little option but to grant ELTEL’s request for immediate payment in full.

The ruling places fresh financial strain on LEC, which has long struggled with revenue shortfalls, aging infrastructure, and public complaints over power reliability.

Analysts say the enforcement of the judgment could have implications for the utility’s day-to-day operations, particularly if asset seizure becomes necessary.

Beyond the financial impact, the case has also drawn criticism over how state-owned enterprises manage contracts with foreign partners and the reputational risks such disputes pose for Liberia’s investment climate.

For international firms watching from afar, the outcome sends a mixed signal, while the prolonged delay raises concerns, the court’s decisive enforcement of the judgment may also be seen as evidence that Liberia’s judicial system can ultimately uphold contractual obligations.

As LEC weighs its next steps, the case stands as a cautionary tale, one that underscores the human and institutional costs of unresolved obligations, and the long shadow they cast over public trust, foreign investment, and national development.

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