Africa-Press – Liberia. — Commerce Minister resigns over US$98K luxury vehicle controversy
Commerce Minister Amin Modad has stepped down from his position amid ongoing controversy related to the acquisition of a luxury vehicle for his official use, costing US$98,000. Modad confirmed his resignation to the Daily Observer, but the Office of the President is yet to officially disclose whether it has accepted his decision. The resignation was leaked to the public in the early morning hours of Wednesday, October 9, coinciding with President Joseph N. Boakai’s return from the UN General Assembly.
Mr. Modad’s resignation came on the back of an emergency cabinet meeting convened by the President — an event which the former minister felt very unwelcomed after reportedly receiving damning stares from the President, sources said.
Upon his return early this week, President Boakai expressed disapproval of officials indulging in luxuries at the expense of the citizens, mentioning that he would be willing to ride a wheelbarrow to work. While not directly naming his Commerce Minister, Amin Modad, who had faced allegations for procuring a luxury SUV at the cost of US$150,000, initially rumored to be a gift from MedTech Scientific Liberia Limited, a Dubai-based subsidiary.
The Liberia Revenue Authority (LRA) and Modad’s Ministry of Commerce and Industry (MoCI) subsequently offered conflicting information regarding the controversy surrounding the vehicle purchase.
In a statement dated September 23, 2024, the Liberia Revenue Authority (LRA) clarified that the purchase of the vehicle did not amount to US$150,000 as was previously reported. Instead, the Customs Authority confirmed that it approved the Ministry of Commerce and Industry’s (MoCI) request for US$96,000 from its Customs Capacity Building Fund in early May 2024.
The funds were allocated under the Destination Inspection (DI) Contract with MedTech Scientific Limited specifically to procure vehicles to support MoCI operations. Furthermore, the LRA categorically refuted any bribery allegations, asserting that they had no involvement in receiving bribes from MedTech or any other entity.
As per the Liberia Revenue Authority (LRA), the vehicles in question are designated for trade-related operations in partnership with Customs. The LRA clarified that the Ministry of Commerce and Industry (MoCI), not the LRA, oversees the specifications and allocation of these vehicles within the MoCI. The LRA further explained that this arrangement is fundamental to the Destination Inspection (DI) contract with MedTech, wherein the LRA is entitled to a 20% share of the fees generated.
Modad said that the cost of the vehicle, including shipping and everything else, is US$98,000 instead of 96,000, as mentioned in the LRA clarification.
“It (vehicle) was around US$82,000 plus shipping and other fees, making it US$98,000.” Mr. Modad said. He also denied that the vehicle in question was customized.
He indicated that the vehicle was not for him and no funds passed through the Ministry of Commerce or any individual — practically insinuating that the LRA purchased the car for the Ministry.
The ruling Unity Party, which Modad once served as its chairman, did not offer support for him in light of the controversy. Unlike other officials linked to luxury vehicle purchases, such as the Minister of State, the Unity Party took a firm stance against Mr. Modad.
The party chairman, Rev. Luther Tarpeh emphasized during a press conference that the allegations against Mr. Modad would not be overlooked. He highlighted the importance of addressing such issues transparently, stating that Minister Modad should address the public and clarify his position.
“We do not question Minister Modad’s competence and ability to lead the sector entrusted to him,” Tarpeh said. “But the public is [alarmed] over the issue that has to do with the purchase of a vehicle by a private company for US$150,000.”
Meanwhile, Medtech Scientific Liberia Limited, the company at the center of the luxurious vehicle controversy, is a subsidiary of Medtech Scientific Limited, based in Dubai. It operates in Liberia as a Special Purpose Vehicle engaged in Destination Inspection services on behalf of the Government of Liberia.
The company is jointly managed by Mr. Abou-Hassan and Madame Angela List, with a fee-sharing agreement of 80% for Medtech Scientific Liberia Limited and 20% for the Liberian Government, administered through the Liberia Revenue Authority (LRA).
In a legal dispute among shareholders, the Supreme Court issued a temporary freeze on MedTech’s account in July 2023, which was later lifted in June of this year. In compliance with the Public Financial Management (PFM) Act, the LRA requested the Ministry of Finance and Development Planning (MFDP) to establish an escrow account to hold the LRA’s 20% share, which amounted to US$3,381,035.99 at the time.
The escrow account was subsequently opened at Ecobank on July 8, 2024, with funds transferred from MEDTECH to this new account on July 11, 2024.
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