Reported by: Prince Saah
Monrovia, Liberia—The national debate over whether the contentious Rice Import Stabilization Program was a legitimate economic intervention or a scandal concealed behind policy decisions has intensified since official government documents detailing millions of dollars in rice subsidy payments to major importers between 2021 and 2022 have surfaced.
The documents show that the Government of Liberia authorized and carried out significant payments to rice importers under a program intended to stabilize rice prices during the COVID-19 crisis and worldwide shipping disruptions. These records include a Memorandum of Understanding (MoU), ministerial communications, and an extensive subsidy ledger.
The revelation allegedly coincides with political friends of former Commerce Minister Mawine Diggs and former Finance Minister Samuel D. Tweah Jr. vehemently opposing fresh public scrutiny of the subsidy agreement. The agreement between Supplying West Africa Traders (SWAT) and the Ministry of Commerce and Industry dated October 6, 2021, which permits the company to import and keep rice buffer stock in Liberia, is at the heart of the dispute.
As part of the agreement, SWAT promised to guarantee a steady supply of rice throughout the nation, while the government promised to promote imports and pay subsidies of up to US$2.00 every 25 kg bag of rice. Additionally, the documents stated that the agreement was only good for a year and could be changed or dissolved by both parties.
The Ministry of Commerce rejected requests from rice importers to raise retail rice prices by US$2 to US$3 in another correspondence dated September 6, 2021, emphasizing instead preserving market stability. According to the same document, the Ministry of Finance and Development Planning of the Government of Liberia promised US$5.5 million in partial subsidy support for Fiscal Year 2021 in order to counteract the rising cost of rice imports worldwide.
More information from the Rice Subsidy General Ledger spanning September 2021 to October 2022 reveals several payments to Fouani Brothers Corporation, including transactions totaling US$980,000, US$1.3 million, and US$1 million, as well as a Liberian dollar payment exceeding LD$358 million associated with the importation of roughly 35,000 metric tons of rice.
According to reports, vouchers, authorizations, and official receipts attesting to the transactions were used to justify the payments made through the Central Bank of Liberia. However, during the pandemic-era economic crisis, government officials have continuously defended the subsidy program as an emergency economic measure meant to shield common Liberians from skyrocketing food costs and supply shortages.
Lawmakers under the leadership of then-House Speaker Bhofal Chambers reportedly examined the program’s components during the 54th Legislature and discovered no proof of financial impropriety. According to reports, other reviews, including those pertaining to the Asset Recovery Team, also failed to prove misconduct.
Despite these conclusions, the revelation of the documents has rekindled political unrest and popular mistrust, especially in light of the ongoing consequences of previous accusations of economic sabotage involving former Finance Minister Tweah. Liberia’s rice subsidy program has once again become a hot topic in the country’s larger discussion about accountability, openness, and the handling of necessities during economic downturns.
