A new investigation has uncovered widespread corruption and the disappearance of Libyan state assets in Liberia worth hundreds of millions of dollars, raising serious concerns over financial mismanagement and lack of oversight.
The report, published by US-based organisation The Sentry, examined frozen assets belonging to the Libyan Investment Authority (LIA) and found that more than $100 million invested in Liberia generated little to no return. Instead, the funds were allegedly linked to corruption, illicit enrichment, and the unexplained disappearance of large sums of money.
According to the findings, Libyan investments—channeled through state-owned companies—failed to deliver any meaningful benefit to Libya’s economy. The report suggested that individuals close to former Liberian President Ellen Johnson Sirleaf may have benefited from these investments, amid weak governance and a lack of accountability.
The investigation highlighted that many of these projects, some initiated during Liberia’s civil war period, carried political motivations but ultimately failed to achieve their economic goals. Several projects were abandoned entirely, while others stalled despite significant financial injections.
One key case involves a Libyan-backed real estate project used as a United Nations headquarters in Liberia. The UN reportedly paid over $50 million in rent, yet the destination of these funds remains unclear. Instead of reaching the original asset owners, payments were allegedly redirected to companies linked to politically connected figures.
The report also examined the rehabilitation project of the iconic Ducor Hotel in Monrovia, once one of Africa’s most prominent hotels. In 2011, the Libyan African Investment Company (LAICO) committed around $65 million to restore the site and develop a rubber production project. Despite design work being completed by an Italian firm, the project never moved forward, particularly after Libya’s political crisis and the breakdown of diplomatic ties. The hotel was later nationalised in 2016, with no clear accounting of the invested funds, and remains abandoned.
Another case cited in the investigation is the Foya rice project, launched in 2008 as a joint venture between Libya and a Liberian company. With Libyan ownership reportedly reaching 96% and investments estimated at $30 million, the project initially created around 200 jobs. However, it collapsed by 2011, amid allegations that approximately $38 million had been spent without clear outcomes. Reports pointed to excessive spending on equipment and salaries, alongside suspicions of corruption and political interference.
The investigation further uncovered irregularities surrounding the Pan African Plaza building, developed through a Libyan-Liberian partnership and used by the United Nations since 2004. While annual rent reached $2.8 million—totalling over $50 million by 2023—these revenues were allegedly diverted to another company, “African Properties Limited,” linked to political figures including Nathaniel Barnes.
The report raised additional concerns over inconsistencies in corporate records, including re-registration and restructuring under unclear circumstances, as well as the classification of the property as “vacant land” for tax purposes—suggesting potential tax evasion.
Complicating matters further, the dissolution of the Libyan-Liberian Holding Company (LLHC) in 2015 left ownership of key assets, including Pan African Plaza, unclear, raising questions over who has been collecting rental income over the years.
The findings point to a broader pattern of corruption, weak governance, and lack of transparency in the management of Libya’s overseas investments. The report concludes that significant financial resources were effectively lost, representing a missed opportunity to support Libya’s economy and strengthen national revenues at a critical time.