MONROVIA – A Ghanaian waste management company previously sanctioned by the World Bank for corruption is actively pursuing new contracts in Liberia.
Zoomlion, a subsidiary of the Jospong Group, has dispatched senior executives to Liberia in recent weeks to negotiate waste management contracts with government officials, according to a reliable source. Zoomlion’s renewed interest in Liberia comes despite its troubled history in the country, where it was previously debarred by the World Bank Group for corrupt practices.
The company’s controversial past stems from its involvement in the Emergency Monrovia Urban Sanitation Project.
In September 2013, Zoomlion admitted to paying bribes to expedite contract execution and invoice processing, leading to a two-year World Bank debarment that prevented the company from participating in any World Bank-financed projects in Liberia.
Our source, speaking on the condition of anonymity due to the sensitivity of ongoing negotiations, indicates that Zoomlion has established significant connections with high-ranking Liberian officials, potentially positioning itself as a leading contender for forthcoming waste management contracts.
The timing of Zoomlion’s attempted return coincides with Liberia’s pressing waste management crisis. The current statistics paint a concerning picture as Monrovia, the capital city, collects only 350 tons of solid waste daily – merely 29% of the city’s total waste production. This shortfall has led to mounting public health and environmental concerns in the rapidly growing urban center.
“The challenge we face is balancing the urgent need for waste management solutions with the imperative of maintaining high standards of corporate integrity,” said an environmental policy expert at one of the two principal city municipalities around the Liberian capital. “Liberia’s waste crisis demands immediate action,” she said.
The potential re-entry of Zoomlion into Liberia’s waste management sector has sparked debate about the effectiveness of temporary sanctions in deterring corporate misconduct in developing nations.
Critics argue that brief debarment periods may be insufficient to ensure meaningful corporate reform, while others contend that companies should be given the opportunity to demonstrate improved practices.
Officials from both Monrovia City Corporation (MCC) and Paynesville City Corporation (PCC) have declined to comment on specific contract negotiations, stating only that all procurement processes would follow established guidelines and regulations.
Liberia has broader struggles with urban sanitation infrastructure, where the population has no access to adequate waste disposal services. The capital’s waste management challenges have been exacerbated by rapid urbanization and limited municipal resources.
Mounting concerns over Zoomline’s reentry
The news about Zoomlion’s reentry in Liberia’s waste management space, after being debarred by the World Bank for corrupt practices is garnering widespread public reactions.
According to a leading Liberian environmentalist who was approached to shed light on the trending waste management development, it would be a sad mistake for the Liberian government to award contracts to a company that used bribery as a business tactic. “This raises serious concerns about the company’s ability and commitment to delivering quality service. A company that relies on corruption to secure deals is less likely to prioritize efficiency, accountability, or the well-being of the public. Instead, its focus would likely be on maximizing profits while cutting corners on service delivery,” the official, who requested anonymity, said.
“Furthermore, the government must consider that the potential for financial losses in waste management is high when transparency is lacking. Waste management, if properly structured, can be a highly profitable sector through recycling, waste-to-energy initiatives, and other byproducts. However, if a corrupt company is in charge, Liberia risks losing significant revenue while also facing environmental and public health hazards due to mismanagement,” the expert said, noting that the government must ensure transparency in contract awarding, enforce strict anti-corruption measures, and prioritize company with a proven track record of ethical business practices and service delivery.
“Our eyes are clearly on this matter with the Liberian government on how they will make such decisions,” the expert said.
James Manobah is a Liberian who resides in Caldwell. Mr. Manobah, like many of his compatriots, is worried about the possibility of a Ghanaian company taking over a major waste management project in a country with 85% unemployment estimates.
“These people will be flooding into our country by way of canoes and buses to take away jobs from our citizens who are just as qualified to work in the sector,” he said.
It can be recalled that the World Bank in 2013 debarred Zoomlion, a Ghanaian Company, for sanctionable misconduct relating to a Waste Management project in Liberia.
The World Bank Group announced the debarment of Zoomlion Ghana Limited (Zoomlion), a privately held company headquartered in Ghana for a period of two years following the company’s acknowledgment of misconduct impacting the World Bank-financed the Emergency Monrovia Urban Sanitation Project in Liberia. The company paid bribes to facilitate contract execution and processing of invoices.
The company’s debarment, according to Ghana Business News (https://www.ghanabusinessnews.com/2013/09/29/world-bank-bans-ghanas-zoomlion-for-paying-bribes-in-liberia/) meant it would not qualify for any contract financed by the World Bank Group which also includes the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).
“The Bank said the debarment is part of a Negotiated Resolution Agreement (NRA) which acknowledges the company’s cooperation and disciplinary measures against staff involved in the misconduct. As part of the settlement, the World Bank indicated that Zoomlion needed to demonstrate full and satisfactory compliance with the World Bank Integrity standards.
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