LEC Faces $24.2M Debt as Monie Captan Exits

Monrovia – Liberia Electricity Corporation (LEC) is staggering under a $24.2 million debt, with CEO Monie Captan, set to exit at the end of November 2024, warning that government arrears and systemic inefficiencies threaten the nation’s power sector.

During his final press briefing, Captan disclosed that the government owes LEC $18.9 million as of October 31, 2024. “The Government of Liberia is the largest consumer of electricity supplied by LEC, accounting for approximately 14 percent of all energy sold,” Captan said. He emphasized ongoing discussions with the Ministries of Mines and Energy and Finance and Development Planning to implement pre-paid metering systems for government entities starting in 2025.

But government arrears are only part of the problem. LEC also owes $5.3 million to the Côte d’Ivoire, Liberia, Sierra Leone, and Guinea (CLSG) transmission network, despite having paid $27.1 million of the $32.4 million billed since the network’s inception.

A September 2024 World Bank report, “Powering Growth with Reliable, Affordable, and Sustainable Energy Access,” highlighted that six in 10 Liberians still lack electricity access. While 30% of the population has some level of power, supply remains unreliable, especially during the dry season.

The report pointed to Liberia’s dependence on hydropower, which supplies 70% of its electricity, as a key vulnerability during periods of low rainfall. Efforts to diversify the energy mix have been slow, even as the World Bank has invested $45 million to extend electricity to 494,000 additional Liberians.

“Liberia’s overdependence on hydropower poses substantial risks, especially during the dry season,” said Wallace Wallen, the World Bank’s Country Manager.

Despite these obstacles, Captan highlighted progress made during his tenure. Notable among these was a reduction in commercial losses, which he attributed to an anti-power theft task force and measures to regularize illegal customers. These efforts reduced commercial losses to 27%, a significant improvement.

“These measures stabilized LEC’s operations, but they are insufficient to resolve the systemic issues plaguing the corporation,” Captan acknowledged.

However, his administration has not escaped controversy. Reports of exorbitant executive salaries, including Captan’s alleged $17,500 monthly pay, have sparked public backlash. Critics argue such salaries are indefensible when most Liberians lack consistent electricity, and businesses falter due to unreliable power.

Meanwhile, President Joseph Boakai has named an interim management team to the LEC.

Those named are:

1. Mr. Thomas Z. Gonkerwon, Interim Managing Director
2. Mr. Eric Augustine Fredericks, Interim Deputy Managing Director for Administration
3. Mr. Emile Kanga, Interim Deputy Managing Director for Operations
4. Mr. I. Dele Shobayo, Interim Deputy Managing Director for Technical Services