The Liberia Water and Sewer Corporation (LWSC) is facing some serious accusations of financial mismanagement, with claims that it has been involved in dubious transactions and money laundering. The Unity Party government has been funneling significant amounts of money to LWSC through the national budget, raising alarms about the corporation’s financial practices.
Reports indicate that LWSC received a whopping $5.8 million in the fiscal year 2024, and shockingly, 98% of that has already been spent. This year, they have been allocated over $6 million, bringing the total to nearly $12 million. Such large sums have certainly caught people’s attention, leading many to wonder where all that money is actually going. A recent audit by the General Auditing Commission (GAC) revealed some troubling financial irregularities within LWSC’s operations. These include unaccounted transactions, unpaid social security contributions, and issues with asset management. The audit specifically pointed out: Daily cash receipts from water and sewage services didn’t align with bank deposits, and some transactions were missing supporting documents. LWSC owes a staggering $372,015.49 in unpaid social security contributions to the National Social Security and Welfare Corporation.
To make matters worse, the corporation is grappling with a hefty debt estimated at over $7 million, which includes unpaid salaries for staff, pension arrears for retirees, and debts to local vendors. In response, LWSC’s management has pledged to disconnect government entities that owe them money, highlighting the urgent need for accountability. The Liberia Water and Sewer Corporation has found itself at the center of a storm in recent years, facing serious allegations of bribery and corruption. In October 2024, the Liberia Anti-Corruption Commission (LACC) kicked off an investigation into claims that LWSC and the Ministry of Transport funneled a staggering $750,000 to bribe lawmakers in ousting Speaker Jonathan Fonati Koffa. This investigation is set to uncover just how deep the corruption runs within the organization.
Mo Ali, the Managing Director of LWSC, is also under fire regarding the $250,000 Gbarpolu water borehole project. Activist Martin Kollie has raised significant concerns about the project’s financial transparency and possible corruption, questioning why the costs are so high and why there was no competitive bidding. Kollie argues that the project should have only cost around $93,823, pointing to inconsistencies in material prices and questionable practices. He specifically highlights problems with the size of the solar panels and the absence of proper filtration systems. In response, Mo Ali has defended the project by referencing previous USAID initiatives that had even higher costs. However, Kollie’s criticisms have ignited a broader conversation about public spending and governance in Liberia. Despite Ali’s justifications, the project’s expenses and execution are still under a microscope, raising suspicions of possible corruption and mismanagement.
Meanwhile, residents of Bopolu City in Gbarpolu County are growing increasingly frustrated over ongoing water shortages, even after President Joseph Boakai inaugurated a mini-water supply system in February 2025. The $250,000 water project was supposed to deliver piped water to the community, but locals feel it has fallen short of their expectations. Reports indicate that the water supply only lasts for about 30 minutes to an hour, leaving many unhappy. Mo Ali attributes the water shortages to seasonal changes, explaining that the dry season naturally leads to a reduced water supply. However, residents and activists are still questioning the project’s financial transparency and effectiveness.
The US Treasury outlines money laundering as a three-step process: First, there’s Placement, where illegal funds are funneled into the financial system, often through cash deposits or buying valuable assets. Next comes Layering, which involves obscuring the money’s origins through a web of complex transactions, making it tough to trace. Finally, we have Integration, where the “cleaned” money is returned to the individual or organization, giving it a legitimate appearance.
Foreign officials found guilty of money laundering can face serious consequences, as the US Treasury has the authority to impose sanctions on individuals or entities involved in such activities. This can include freezing assets and limiting access to the US financial system. In Liberia and the US, activists are urging the US Treasury to look into the deep-rooted corruption and money laundering happening at LWSC. If verified by the US, Mo Ali and anyone else implicated should face sanctions under the Global Magnitsky Act for their corrupt actions.