Monrovia, Liberia – Almost ten years after a Swedish engineering firm provided essential electrical materials to Liberia’s state-owned power utility, a Montserrado County court has ordered the Liberia Electricity Corporation (LEC) to make immediate payments of over US$415,000. The order is to resolve a lengthy business dispute that has come to reflect deeper concerns about contract enforcement and public-sector accountability in Liberia.
In a payment order dated February 4, the Montserrado County Debt Court found that LEC owes ELTEL Network US$415,327.08. This sum covers court expenses, attorney fees, interest, and the principal judgment. The ruling followed a hearing on Tuesday, February 3, 2026, during which LEC acknowledged guilt but failed to properly provide the court with a structured repayment plan.
According to court documents, the judgment includes US$364,322 in principal, US$21,859.32 in interest (calculated at a rate of six percent annually), US$7,286.44 in attorney fees, and an additional US$21,859.32 in court costs. Assistant Clerk Hoses Nelson signed the order, which directs LEC to pay the Debt Court sheriff right away. It also issues warning that noncompliance will result in enforcement actions, such as a writ of execution that permits the seizure of LEC assets in order to pay up the debt.
After several attempts to resolve the issue peacefully failed, the decision represents the end of years of legal uncertainty for ELTEL Network. A 2016 supply agreement between ELTEL Network and LEC that supplied low-voltage electrical components necessary for power distribution systems, control rooms, lighting infrastructure, and security networks is the source of the dispute.
During a period when access to dependable power was still limited and national reconstruction was still in progress, these materials were used in Liberia’s post-war efforts to expand electricity. Court documents indicate that a protracted impasse that lasted for years resulted from disputes over payments for supplies delivered under the contract.
According to the documents, ELTEL attempted several times to settle the dispute outside of court. In an attempt to resolve the conflict, the Swedish company allegedly offered to take a lower payment of US$360,000 between 2019 and 2020, waiving more than US$74,000 in outstanding claims.
ELTEL referenced prior promises made by the utility to pay off the debt in a letter dated January 1, 2020, to LEC’s then-CEO. The business resorted to the legal system when those promises failed to be fulfilled. LEC suggested paying a 25 percent down payment, or roughly US$103,832, to settle the decision during the hearing on Tuesday.
The court was forced to grant ELTEL’s request for immediate payment in full because the proposal was not formally made through a motion asking a structured payment plan. LEC, which has long battled income shortages, deteriorating infrastructure, and public complaints about power reliability, is now under further financial strain as a result of the verdict.
The utility’s daily operations may be impacted by the judgment’s enforcement, according to analysts, especially if asset seizure is required. In addition to the financial consequences, the case has been criticized for the way state-owned businesses handle contracts with foreign partners and the reputational concerns that these conflicts provide for Liberia’s investment environment.
While the lengthy delay creates problems, the court’s decisive implementation of the verdict may also be viewed as proof that Liberia’s judicial system can ultimately honor contractual duties, sending a mixed message to foreign corporations observing from a distance.
The case serves as a warning as LEC considers its options, highlighting the institutional and personal costs of unfulfilled liabilities as well as the long-term damage they inflict to national growth, foreign investment, and public confidence.
Credit: Willie N. Tokpah
