Published: June 15, 2026
MONROVIA — Legal practitioner Cllr. Samuel S. Pearson has mounted a strong legal defense of President Joseph Nyuma Boakai’s proposed amendment to the Liberia Agency for Community Empowerment (LACE) Act, arguing that the reform would strengthen transparency, accountability and equitable development by placing Corporate Social Responsibility (CSR) activities under a centralized national framework.
The proposal, currently before the House of Representatives, seeks to amend Title 12, Chapter 50(B) of the Executive Law of Liberia to empower LACE as the lead institution responsible for coordinating, monitoring and reporting community development contributions made by State-Owned Enterprises (SOEs), autonomous public corporations and designated private entities.
Pearson presented his arguments during a joint hearing of the House Committee on Governance and Government Reform and the Judiciary Committee, which is reviewing President Boakai’s proposed amendment to the law establishing LACE.
According to Pearson, the reform is firmly grounded in Liberia’s Constitution, existing statutory laws and internationally recognized best practices designed to ensure that development resources reach communities that need them most.
He argued that Article 7 of the Constitution provides a strong legal basis for the amendment by requiring the government to manage the nation’s economy and natural resources in a manner that advances the welfare of the Liberian people.
The legal practitioner also referenced Article 5(c), which promotes national unity and integration, asserting that a more equitable distribution of community development projects would help advance that constitutional mandate.
Pearson maintained that state-owned enterprises and autonomous public corporations are established to serve public interests and therefore carry a responsibility to contribute directly to community development.
He cited institutions such as the Liberia Petroleum Refining Company (LPRC), National Port Authority (NPA), Liberia Electricity Corporation (LEC), and Liberia Water and Sewer Corporation (LWSC) as examples of public entities whose operations should generate tangible benefits for local communities.
While acknowledging that many public corporations already undertake CSR initiatives, Pearson said Liberia lacks a centralized system capable of tracking how those resources are allocated and whether they are achieving meaningful developmental results.
According to him, the absence of a coordinated oversight mechanism has created accountability challenges and made it difficult to assess the true impact of CSR spending nationwide.
Under the proposed amendment, LACE would maintain a national database of CSR projects, monitor implementation, evaluate developmental impact and help ensure a fair distribution of projects and resources across Liberia.
The reform would also seek to eliminate duplication, improve transparency and strengthen oversight of community development investments.
Pearson emphasized that the proposal complements Liberia’s broader accountability architecture, including the Public Financial Management Act, General Auditing Commission Act and Liberia Anti-Corruption Commission Act.
He stressed that the amendment does not create a new government institution but instead strengthens an existing agency with extensive experience in poverty reduction, rural development, community empowerment and infrastructure initiatives.
According to Pearson, LACE already possesses the technical capacity and institutional expertise required to coordinate and manage community-based development programs nationwide.
To support his position, Pearson pointed to international examples where structured CSR systems have been successfully implemented.
He referenced India’s Companies Act of 2013, which requires qualifying companies to dedicate a portion of their profits to CSR activities and publicly disclose related expenditures.
He also cited Nigeria’s Petroleum Industry Act of 2021, which established Host Community Development Trusts to support communities affected by petroleum operations.
Additionally, he highlighted South Africa’s corporate governance framework, which requires extensive sustainability and social responsibility reporting, as another model demonstrating the value of structured CSR oversight.
Pearson argued that a centralized CSR framework would also help Liberia advance several United Nations Sustainable Development Goals (SDGs), including poverty reduction, quality education, healthcare, clean water access, infrastructure development and sustainable communities.
He maintained that the Legislature has full constitutional authority to amend the LACE Act and require annual CSR contributions, reporting obligations, audits and public disclosure measures for public corporations.
Among the recommendations contained in the proposal is the possible establishment of a National Community Development Fund to ensure transparent management and equitable distribution of community development resources.
Under the proposed framework, state-owned enterprises, autonomous public corporations and designated private entities would contribute a specified percentage of their annual profits or approved budgets toward community development initiatives administered through LACE.
Pearson argued that because public corporations manage resources that ultimately belong to the Liberian people, it is both appropriate and necessary that a portion of the revenues generated from those resources be reinvested in underserved communities.
He concluded that the proposed amendment enjoys strong constitutional, legal and policy support and has the potential to significantly enhance transparency, accountability and balanced development across Liberia.
According to Pearson, the reform presents a unique opportunity to position LACE as the country’s principal coordinating institution for Corporate Social Responsibility and community development initiatives, ensuring that the benefits of economic activity reach communities throughout the nation.
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