PHOTO: The Author next to a LEC token
Press Release by Pero M. K. Kerkula
The writer is a former board member of the Liberia Electricity Corporation (2003–2006).
The Liberia Electricity Corporation (LEC) is inflating the Goods and Services Tax (GST) on prepaid electricity bills, exploiting ordinary customers – the poor and economically disadvantaged. This appears to be calculated corporate fraud through the unlawful collection of GST.
It has been observed that LEC is exploiting customers through GST overpricing. As of 2026, the legal GST rate increased from twelve percent (12%) to thirteen percent (13%). This “hurts households,” says Dr. Clarence Moniba.
The Liberia Electricity Corporation (LEC) was established in 1973 through an Act of the National Legislature. LEC is a state-owned public utility with a legal mandate to:
- *Generate electricity* – via hydro, thermal, and solar plants.
- *Transmit electricity* – across the national grid and regional CLSG lines.
- *Distribute electricity* – to homes, businesses, and institutions.
- *Sell electricity* – bill and collect payments from customers.
*OFFICIAL MANDATE:*
LEC was created “with a mandate to produce and supply economic and reliable electric power to the entire nation, while at the same time maintaining the corporation’s financial viability.”
*EXPANDED RESPONSIBILITIES:*
– Ensure electricity is efficient, reliable, and affordable.
– Meet the increasing demand for electric energy in Liberia.
– Serve as a catalyst for socio-economic development.
– Improve and expand the system to meet future growth.
However, we have found that LEC is exploiting households by inflating the GST from the legal thirteen percent (13%) to fifty percent (50%). I prepaid $10.00 for electricity. LEC credited my account with only $5.00 and deducted $5.00 as GST. Instead of the legal 13% GST, which should be $1.30, LEC applied 50% GST. This is dubious, fraudulent, illegal, and exploitative, and it violates the legal 13% GST rate.
- *The math*: The law states 13%. LEC charged me 50%. The GST should have been $1.30, not $5.00. LEC overcharged me by $3.70, which I consider corporate fraud.
- *Scale*: If LEC does this to 100,000 customers monthly on $10 top-ups, that amounts to $370,000 in illegal charges per month.
- *Question*: Is LEC remitting the extra $3.70 per $10 to the LRA, or keeping it?
- *Demand*: I demand that the Liberia Revenue Authority (LRA) and the Liberia Electricity Regulatory Commission (LERC) investigate this corporate fraud perpetrated by LEC.
- *Call to Action*: I call on the relevant authorities to uncover and stop this unlawful GST imposed by LEC.
If the Unity Party-led Government is serious about rescuing the nation, corporate fraud, dubious business practices, corruption, and unlawful taxation must be checked and stopped.