Amin Modad Showcases Transformational Moves at MOCI -Apparent Attempt to Put Critics & Cynics in Check?

Under sustained onslaught by his critics, and perhaps opponents, over allegations of corruption and graft, the Minister of Commerce and Industry (MOCI), Amin Modad, sees “enemies of change” who are bent on nothing but to impinge on reputations, often grandstanding and stone-walling despite all clarifications and transformative strides he and the Ministry have been providing and making amid allegations of corruption. But in a special statement, a copy obtained over the week, Minister Modad and the MOCI not only present a point-by-point rebuttal to allegations flying in the public space against him, but also an in-depth narrative on the impactful strides they have made over the last six months. The Analyst reports.

The Ministry of Commerce and Industry, headed by Minister Amin Modad, is not letting its accusers and “haters” continue unanswered and with impunity in the barrage of accusations sustainedly targeting the ministry and its head in the last two weeks or so.

In a special riposte, the Ministry says there are “enemies of change for whom the very existence of this administration is a threat,” adding that “these enemies will stop at nothing but to impinge the reputation of most of the president [Boakai’s] trusted lieutenants and those they cannot corrupt”.

The Ministry contends that the “enemies of change” continue to be evasive and deaf-locked to even the clearest and loudest of clarifications and independent testimonies vindicating its boss Modad in allegations of corruption levied against him.

For instance, the Ministry says “in a press release issued in Monrovia last Monday, the Liberia Revenue Authority (LRA) clarified that it has, over the years, provided logistical support to several government ministries and agencies involved in revenue mobilization, including the Ministries of Foreign Affairs, Transport, Mines and Energy, and Labor, as well as the Liberia Immigration Service, Liberia National Fire Service, and the National Legislature,” but critics still see a donation by the same LRA to the Ministry as corruption.

The LRA collaboration with other government agencies, including the MOCI, has played a pivotal role in boosting revenue collection, contributing to an impressive increase of over US$53 million as of August 31, 2024, compared to the same period last year, says the Commerce Ministry, but critics have chosen to ignore the explanation and keep making “false accusations”.

“Here are some of the false accusations and rebuttals” said the Ministry in an exhaustive public relations piece release which began allegations of a vehicle that was gifted to Minister Amin Modad by medtech.

The MOCI statement asserts that as verified by LRA, the vehicle in question was not for Amin Modad and no money passed through the Ministry of Commerce or any individual.

“All documentation relevant to the purchase (from invoices to bill of laden) carries the name of the Ministry of Commerce. The lra in a statement emphasized that all procurement processes were properly followed, and the vehicle in question is government property, not the personal asset of Minister Amin Modad, as some reports have implied.

“Amin Modad has been using his personal vehicle since taking office as minister for 8 months. The first vehicle the Ministry acquired was assigned to the Inspectorate which had more urgent priorities including. The Minister continued to fuel his car and pay the drivers driver’s salary since taking over out of pocket. However, his vehicle is a Mercedes sedan, which cannot go everywhere (even in Monrovia) due to road conditions. If the Ministry is to truly address trade and industrial issues impacting the growth of the private sector and particularly support the Government’s Liberianization agenda, its activities must be decentralized; this requires that the minister and his team work in all the counties and engage all the border points.  There is no vehicle approved in the budget for the Ministry, let alone the Minister.”

Providing further clarifications, MOCI says “when the Ministry discovered that the LRA had previously provided such support to the MOCI through its legal/contractural arrangements with BIVAC and MEDTECH over the last couple of years, it reached out to LRA to help with the purchase of 3 vehicles. Invoices from several dealerships were collected; all other vehicles with the Off-road, size, and safety requirements were above $100K.

“Furthermore, at the time the Ministry made the request and began the procurement process began processing (in March), the ‘Budget Law’ restricting the ceiling price for ministers’ vehicle was not in place; it was passed in June. Even then, the $45K ceiling for the OFF-ROAD capacity and the basic safety & comfort requirements; other than Pick-ups and few Chinese vehicles and, it is impossible. The vehicle was purchased for the Ministry of Commerce, paid directly to the vendor.”

The MOCI has further clarified another “false accusation” that the vehicle provided the Ministry to bolster revenue collection is a custom made — bullet proof $150k in-depth similar to that of US President Joe Biden’s”.

Contrary to that allegation, the Ministry says the vehicle in question was not custom made and not purchased for $150k as critics are “fabricating”.

“It was around $82k”, shipping and other fees, equating to $98k. This is still below the cost of many new suvs sold locally including the popular land cruiser and Nissan Patrol,” the Ministry said.

“No malfeasance occurred”. 

Regarding accusation of the “purchase of a yacht valued at $400K, similar to that of late President Tubman,” MOCI again reiterates that “This is false and malicious”.

“With nothing to hide, Minister Modad listed a boat (not a yacht) when he declared his assets. Before ever serving in government, evidences are available confirming that he has owned more than 3 boats and water crafts since 2010,” the “Commerce Minister, also clarified, adding that even the allegation that Minister Modad received duty free clearance on a $400k yacht is far from the truth.

LRA in its statement dismissed the accusations as false, confirming that in July 2024, Minister Modad cleared a “motor vessel”, and paid all applicable duties, with no special exemptions or duty waivers granted.

MOCI also debunked critics’ accusations of “bribery and corruption”, affirming that Minister Amin Modad is known for his integrity and respect for the rule of law.

“Before serving in government, he was known to be one of the most successful Liberian entrepreneurs with investments in hospitality, real estate, transportation, and food & beverage production,” the Ministry asserts.

“He was one of the first Ministers to declare his assets on April 11, show assets over $15m and a net worth of over $8M. He is the only minister to have reduced his salary by 40% following the President and to demonstrate his commitment to the president’s agenda and in consideration of conditions the government inherited.”

The records are there, says the Ministry, stating further that Modad “continues to demonstrate accountability, prudence, and commitment to change.

“For example, he has refused any board fees since he took office from both boards that he chairs or serves on. True to his commitment and principals, he believes that as a statutory responsibility, senior official should not be receiving additional fees for statutory roles once paid good salaries.”

The Commerce Ministry statement said “any of the detractors spreading the lies and propaganda are actually individuals who are against Mr. Modad because he is not conceding to their corruption and pressure to for him to grant them preferential treatments”.

The ministry is performing well and rebuilding its capacity and credibility compared to 2023 during which the Ministry generated $1.9 million out of $3M projected, why in 2024 the ministry generated $1.6M within the first 5 months under the stewardship of Minister Modad and is poised to generate $3M by the end of the year.

When Min. Modad assumed office, the MOCI statement further asserts, “permits to import rice were granted to only 6 major importers; Min. Modad has granted permits to more than 6 more businesses.”

Key Initiatives & Achievements Within the Last 9 Months

The MOCI statement does not only negate, clarify and debunk accusations of its detractors, but showcased what seem to be impressive strides it has undertaken and achieve in little over half a year.

Amongst some of the key achievements, the Ministry say it voluntarily requested internal audits of human resources, payroll, financial transactions, and fixed assets and has communicated with the Civil Service Agency to retire and replace absentee staff, audit staff aged 60 and above for pensioning, conduct a headcount to identify ghost employees, incomplete PANs, and staff qualifications, hire essential qualified staff to address critical capacity gaps in the Ministry,  Established a four-member disciplinary committee to investigate malpractices and reports of  misappropriation.

MOCI also said, in its first few months under the leadership of Modad, it formally engaged the General Services Agency to retrieve eight unlawfully taken vehicles; realigned and strengthened the Procurement Division in line with the Public Procurement Act of 2010; began the process of procuring and installing a biometric system for attendance and security, and is painting the interior and exterior of the Ministry as well as furnishing the offices to represent the center for business it should be, including having a personal projector for the Minister.

Said the statement further: “We have completed 90% of the renovation of the Business Registry which includes the installation of a solar power system. We are in the process of securing services to digitize the business registration process and are also procuring anti-counterfeit business certificates with QR codes. This will be a major improvement that will impact business facilitation by creating a more efficient and less corrupt system.

“We have secured funding for the digitization of all the services of the Ministry including the application process for IPDs and EPD; we secured funds for the printing of essential publications and documents including brochures highlighting services provided by the ministry, business/investment opportunities in Liberia, our vision, and priorities of the ARREST Agenda.”

The Ministry is also reporting ongoing local and international staff capacity building/training activities, and facilitating Public-Private Sectors Collaboration by which “We have strategically reengaged stakeholders in efforts to foster a more productive relationship. We are now including the Chamber of Commerce, Liberian Business Association, and Liberia Marketing Association in most of our activities and plans.”

“We have met with some of the major concessions and manufacturers and agreed on a couple of initiatives to improve the domestic economy including establishing a horizontal structure in each where Liberian companies are empowered to distribute their products and provide basic services to these companies,” the MOCI statement noted. “They also agreed to improve their corporate social responsibilities in support of our national development priorities.”

MOCI, according to the statement, has implemented an aggressive re-engagement with its development partners in an effort to not only harness opportunities, but to also become active participants in the global trade decision-making system.

“We recently visited Geneva and had critical meetings with the World Trade Organization, World Intellectual Property Organization, the Enhanced Integrated Framework Secretariat, and the International Trade Center thereby reintegrating into their programs and reinforcing our National Development Priorities as enshrined in the ARREST Agenda (the T meaning Trade, encompassing Tourism).”

The Ministry further added: “We have paid $33K to the WTO fulfilling our arrears and $55K to the EIF against funds misappropriated by the previous leadership that prevented our access to over $6M in capacity support. o We engaged the Governments of Cambodia, China, India, and Indonesia on food security, Rice Supply, and food production; significant progress was made.”

Providing key highlights from visit, the statement quotes Minister Modad as emphasizing the need for renewed assistance in updating Liberia’s trade and SME policies, promoting value addition, and enhancing cross-border trade, particularly for women.

He also stressed the importance of diversifying the economy through rice production and promoting locally produced rice. ITC Executive Director Pamela Coke-Hamilton committed to: securing $100,000 through the Enhanced Integrated Framework (EIF) to support value addition and capacity building in Liberia; investing in the Sea Trade initiative to empower women in trade, and collaborating with the European Union to fund capacity building in technology and e-commerce.

At the World Trade Organization (WTO), Minister Amin Modad highlighted the steps taken to repay $55,000 owed by the previous government.

The discussions included the notification process of the Fisheries Agreement, potential foreign direct investment, and the establishment of a single-window process to streamline business operations in Liberia.

The WTO Director-General Dr. Ngozi Okonjo-Iweala committed to helping Liberia, including supporting Liberia with technical assistance and capacity building for e-commerce; providing support for SMEs, youth, and women in trade and commerce, and engaging the Indian government to address the 20% surcharge on IR64 Indian parboiled rice imports to Liberia.

At the World Intellectual Property Organization (WIPO), the MOCI press statement, reports that Minister Modad acknowledged WIPO’s support for SMEs and youth in IP capacity building and requested additional support, including the establishment of a regional WIPO office in Liberia and the development of an IP policy.

Consequence of the visit and his presentations, the release notes that WIPO Director General Dr. Daren Tang Heng Shim committed to supporting the development of an IP policy for Liberia;  e-building an Intellectual Property Academy to train Liberian entrepreneurs, designers, and developers in IP management; partnering with a Liberian IP institution to train 50 Liberians over nine months starting this year; supporting a nationwide publicity strategy to educate Liberians about the benefits of IP.

Collaboration with Cambodia

Minister Modad requested Cambodia’s assistance in supplying rice to Liberia through a government-to-government (G-toG) arrangement and or through private business ventures. This request followed India’s 20% export surcharge increase on rice, which had caused market instability and potential price hikes.

Minister Modad highlighted the sensitive nature of the rice situation in Liberia, referencing the 1979 Rice Riot and noting that Liberia consumes approximately 335,000 metric tons of rice per year. Commitment from Secretary of State for Trade Hon. Ouk Prachea who expressed empathy and assured Cambodia’s willingness to assist.

He mentioned that Cambodia supplies various types of rice, including white, brown, basmati, Thai jasmine, Arborio, parboiled medium grain, and glutinous rice, to multiple countries and had more than 1M MT of rice in excess last year.

Cambodia, the release said, agreed to send samples of these rice varieties to Liberia through the Liberian Mission in Geneva before mid-August, assuring Minister Modad that if Liberia was interested in the varieties of rice Cambodia produced, they would be prepared to enter in an MOU.

Meeting with the Chinese Trade Ambassador to the World Trade Organization

In a meeting with Ambassador Li Chenggang, the Chinese Trade Ambassador to the WTO, Minister Modad emphasized the strong Sino-Liberian trade relations and discussed the current rice situation in Liberia.

He urged the Ambassador to assist in securing an alternative market for Liberian importers. Additionally, he reaffirmed Liberia’s support for the Investment Facilitation for Development (IFD) initiative, noting its integration into Liberia’s trade policy as a key development tool. Minister Modad also requested technical assistance in trade-related issues at the WTO.

Commitment from Ambassador Li Chenggang: Ambassador Chenggang reassured Minister Modad of China’s commitment to Liberia’s development and enhanced trade relations. He extended an invitation to Minister Modad for the Ministerial Workshop on IFD to be held in Beijing at the start of September and assured him that he would convey Liberia’s concerns about rice supply to his government.

This was done and the Chinese Embassy in Liberia received communications from Beijing; Successive meetings have been held with the Chinese Ambassador to Liberia.

It can be recalled Liberia ratified the WTO Trade Facilitation Agreement (TFA) in June 2016 and the AfCFTA Agreement in March 2018, aiming to ensure transparency in international and continental trade, streamline the movement of goods across borders, and create a better business environment.

After years of dormancy, we recently lodged the ratified AfCFTA Agreement with the AU through the Ministry of Foreign Affairs stemming from reengagement with the AfCFTA leadership in Houston, TX. This also led to a milestone visit to Liberia by the SG of AfCFTA opening insurmountable opportunities for Liberia in terms of regional trade integration, access to markets, and support through continental initiatives on rail & maritime transportation, digital payment gateways, trade financing, etc.

The MOCI also reports that it has reestablished derailed relationship with UNDP caused by over $300K accrued debt to service providers and lack of responsiveness from previous leadership.

“We engaged our partners for support to expand and modernize the Monrovia Industrial Park (MIP) to make it more attractive for investment,” the press statement said. “This included a review of the National Industrial Policy to align it with current realities. We met with UNIDO to advocate for this review and are collaborating with the Liberia Electricity Corporation (LEC) to construct a substation within the MIP. This substation will provide operators with steady, affordable electricity, and the project is expected to be operational within 12 months.”

The Ministry has also established a robust inspection regime to ensure quality assurance for locally manufactured and imported products, which includes procuring uniforms and equipment for the Inspectorate and Standards Division.

“We have secured funding through UNIDO to refurbish the Standard Lab and working of securing funding to build a proper and more expansive facility. We are also in talks with private companies to extend the services of the lab to include inspection of foods and other items imported into the country for safety and hygiene and to ensure that they meet the quality standards for the market,” indicating that it has been realigning the mandate of the Standard Authority as the umbrella institution to regulate standards and other related institutions such as labs.

The second-quarter industrial audit exercise was completed,” the Ministry said, focusing on educating the sector about industrial safety and good manufacturing practices.

It further stated. “We have collected basic manufacturing data from industries to build a functional database of all manufacturing companies in the country. We collected random samples of products such as zinc, steel, and nails and sent them to the Ghana Standards Authority for testing to address complaints of poor quality.

“We recently released new Administrative Regulations on the importation of Electronics, Rice, and Frozen Foods aimed at opening the market in a more efficient (managed) manner with a focus on ensuring quality, fair pricing, increased government revenue, and empowering Liberians.”

Out of alarming concern about the prices of commodities and basic necessities on the market (as inherited), the Ministry said it announced the reduction of the prices of key commodities and items beginning two weeks ago with Flour, Steel Rods, and Eggs.

“We had several meetings with Importers and Supermarkets over the last three weeks and this list will be expanded shortly,” the Ministry further noted.

“The Supermarkets have agreed to not only reduce prices, but to also construct stalls for Liberian Women to sell locally produced vegetables, fruits, and other packaged products in a more hygienic and appealing way. As schools will be reopening, they have been persuaded to also set up dedicated sections in their supermarkets for school supplies and foodstuffs for students and children at reduced prices.”

The Ministry has accordingly launched an Informal Sector Free Registration Program targeting 10K beneficiaries, coopted 140 students from various universities who were trained to assist in the informal sector registration process and provides support for Vegetable Sellers.

“Through engagements with the UNDP, we installed two 40-foot cold solar storage units to enhance storage facilities at Omega Market on May 28, 2024. In support of fish farmers in Little Bassa, we have received eight solar freezers funded by UNDP for installation.”

Public Procurement Regarding its revamped public procurement regime, the Ministry says it has begun engaging stakeholders on the 25% Procurement Law which mandates that 25% of public procurement must go to Liberian Businesses with 5% specifically for women-owned MSMEs.

“In collaboration with the PPCC we have reprioritized this and will be soliciting reports from each agency of government to ensure compliance,” the Ministry said.

Made-in-Liberia Store The Made in Liberia Store is completed at the Ministry and will be used to properly showcase and market Made in Liberia products supporting Liberian manufacturers and agro-processors, the MOCI says, adding that it has secured funding to renovate the Farmers Market at the Jorkpentown Market to revive it for selling Liberian agricultural produce.

It said: “The top floor of the market was managed by the MOCI, but was neglected over the years; the roofing system is totally damaged and rain is now pouring down to the market hall. o We also contributed $2000 to LMA to support the renovation of the Rally-Time Market Roof which was causing a lot of distress for the marketers.”

According to the Ministry, it has grounded the Inspectorate for a while after taking over to reorient them on their functions and responsibilities and to address the numerous complaints from the public.

“We have relaunched the inspectorate with proper uniforms and a predictable inspection mandate. We have purchased a new pickup truck and appropriated other vehicles to improve its outreach,” asserted the Ministry in its press statement.

“The inspectorate has been active in monitoring pricing, quality of products on the market, safety & safety of manufacturing facilities, and cross border trade,” the Ministry maintained.

“We have curtailed cross border outward smuggling of rice, flour, and other commodities as well as inward smuggling of unhealthy foods, pharmaceuticals, and other commodities. In an effort to ensure that factories are operating in safe and hygienic conditions, we implemented a rigorous inspection exercise through which we identified multiple incidences of infringements. We temporarily shut down several major factories, fining them up to $10K each, and compelling them to improve these conditions.”

Support to SMEs The Ministry also says it also launched on May 28, 2024, in collaboration with UNDP and Accountability Lab Liberia, this program supports impactful Liberian businesses and cooperatives across seven counties — Montserrado, Lofa, Grand Cape Mount, Nimba, Grand Bassa, Sinoe and Grand Gedeh – by providing access to technical assistance, mentorship, and co-financing.

The program is designed to help revenue-generating small and medium-sized enterprises and commercially inclined agricultural cooperatives to scale-up their operations and contribute substantially to national economic development through increased revenues and job creation.

“This is accomplished through a rigorous annual business development training and business plan pitching competition with up to US$40,000 It will provide technical assistance, mentorship, and co-financing grants ranging from US$10,000 to US$40,000 to 57 Liberian MSMEs, forest-based enterprises, and agricultural cooperatives,” MOCI says. “The program involves MoUs with International Bank Liberia Limited, United Bank for Africa Liberia Limited, Bloom Bank Africa, and Ecobank Liberia Limited.

The Ministry boasts of training 135 individuals, including 90 persons with disabilities or affected by HIV/ AIDS, and 45 women in textile production. 90 of whom received grants of US$500 each, and 45 women received US$1000 to 45 to help start their businesses after their training (amounting to $45,000).

“The Ministry of Commerce and Industry and the Tailor Union of Liberia will be graduating about 50 youths who have completed basic training in sewing and have decided to take career in the textile industry. Each trainee will receive one sewing machine along with other accessories to start a new business.”

Support to SMEs MOCI has reported the launch of a $6M line of credit for SMEs supported by the World Bank under the LIFT Program.

The first US$3m has been processed and another $3m will follow, the Ministry says, as it has already provided low interest and suitably termed funding through the commercial banks and other non-banking financial institutions.

“Portions will be dedicated to importing Liberians in the importation of key commodities with the aim of progressing into local production,” the MOCI said. “Through many policy changes and engagements with the private sector including opening the market, prices of key commodities and imports have reduced and stabilized. Market prices of Rice, Frozen Foods, Sugar, and Petroleum products have gradually dropped over the last few months despite global factors impacting pricing.”

Strategic Managing of Market The Ministry has praised Minister Modad for essentially opening and strategically managing the market and there has been no shortage of rice (in particular) and other foodstuffs on the market for the past 9 months.

“The Ministry of Commerce has commenced a nationwide tour, visiting Margibi, Bong, and Nimba and various border points in that region; this exercise will continue to other counties in October and November in our effort to improve services across the country in increase revenue.”