MONROVIA – Liberia has become the focal point of West Africa’s fight against financial crime as the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), an institution of the Economic Community of West African States (ECOWAS), joined forces with Secure Finance Africa to spotlight the growing threat posed by corruption in public procurement.
By Jaheim T. Tumu, tumu-jaheim.tumu@frontpageafricaonline.com
The workshop, held in Monrovia, emphasized that Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) frameworks are not merely technical regulations but critical safeguards against corruption and illicit financial flows that continue to drain billions of dollars from national economies.
Participants were reminded that effective AML and CFT measures serve as frontline defenses against criminals who disguise illicit proceeds as legitimate income, making strong governance and accountability essential to protecting fragile economies.
Procurement: A Prime Target for Criminal Networks
Opening the workshop, GIABA Director General, Edwin W. Harris, warned that procurement systems across West Africa remain highly vulnerable to corruption, fraud, and money laundering.
According to Harris, public procurement accounts for a significant portion of GDP in many ECOWAS member states, making it an attractive avenue for illicit financial activity.
“Opaque processes, weak oversight, and endemic corruption create fertile ground for money laundering, fraud, and illicit financial flows that drain our public coffers,” Harris said.
“In too many cases, the very systems designed to build our schools, roads, and hospitals are being weaponized for illicit purposes. This is not acceptable, and we must not allow it to continue.”
Harris revealed that West Africa loses an estimated US$50 billion annually to illicit financial flows—an amount that exceeds the region’s total development assistance.
“Criminals continue to find ways to systematically exploit vulnerabilities in procurement systems,” he warned. “They create shell companies and front entities, conceal beneficial ownership, manipulate tender processes, split contracts, inflate invoices, and launder illicit proceeds through payment streams that appear legitimate.”
To address these risks, Harris said GIABA has developed a new Procurement Guidebook aimed at helping governments identify, prevent, and respond to money laundering risks throughout the procurement cycle.
“Over the next four days, participants are expected to validate the most common money laundering and terrorist financing typologies in public procurement across our region,” he said.
“We must walk away with more than goodwill. We must leave with a formally adopted guidebook and a strong regional consensus that procurement is no longer a safe harbor for money laundering.”
He also challenged oversight institutions to ensure accountability.
“Audit without follow-up is not meaningful. Oversight without enforcement lacks impact,” Harris declared, stressing that intelligence reports must lead to investigations, prosecutions, asset freezing, seizure, and confiscation.
Ngafuan: Revenue Means Little Without Integrity
Liberia’s Finance and Development Planning Minister, Augustine Kpehe Ngafuan, stressed that raising revenue is meaningless if public spending is compromised through corruption and inefficiency.
“Procurement, if done well, will ensure that the monies we raise truly go toward achieving the development objectives outlined in our budgets,” Ngafuan said.
“It is unfair for us to spend double on anything. When we do that, we rob the public purse and shortchange the country.”
He highlighted Liberia’s ongoing transition to an electronic procurement system, noting that five major ministries were initially placed on the platform before it expanded to 50 government entities.
While acknowledging implementation challenges, Ngafuan argued that practical application is more important than theoretical knowledge.
“I usually joke that no matter how much you learn in law school or a war college, it cannot compare to the experience of someone who has been on the battlefield,” he said. “At some point, you have to put knowledge into practice.”
The minister urged closer collaboration among procurement authorities, financial intelligence units, auditors, anti-corruption institutions, law enforcement agencies, policymakers, and legislators.
“Strengthening integrity in public procurement is central to the fight against corruption, money laundering, terrorist financing, and the misuse of public resources,” he said.
Ngafuan also cautioned that transparency alone is insufficient if small Liberian businesses feel excluded from government contracting opportunities.
“Because of their discomfort, they don’t compete. Yes, you may have transparency, but the number of competitors is reduced. We have to address that,” he said.
He reminded participants that the consequences of corruption in procurement extend directly to ordinary citizens.
“When procurement systems are compromised, schools, hospitals, roads, security services, and other essential public goods suffer.”
Calling for frank discussions during the workshop, Ngafuan urged delegates to share practical experiences from their respective countries.
“Tell us your country experience. Show us that you’ve been on the battlefront and not only in a theory room,” he said. “The quality of your deliberations will determine the strength and usefulness of the final guidebook.”
EU Backs Transparency and Accountability Reforms
Representing Team Europe, Anna Brzozowska, First Counselor and Team Leader for Political and Economic Governance at the European Union Delegation to Liberia, linked the workshop’s objectives to the EU’s broader governance agenda in Liberia.
She warned that Liberia cannot afford complacency regarding terrorist financing, even if the threat appears limited.
“Liberia may convey the message that it is not threatened by terrorist financing,” Brzozowska said. “But in reality, countries can become logistical or financial back offices for terrorist activities without obvious signs.”
She noted that the European Union’s primary focus in Liberia remains public financial management, transparency, and accountability, supported through budget assistance and complementary governance programs.
“Our biggest interest in Liberia is public finance management, accountability, and transparency,” she said. “The success of those interventions will be important for the entire country and all Liberian citizens.”
Brzozowska also highlighted the link between transparency and investment, arguing that corruption continues to discourage foreign investors despite Liberia’s political stability.
“To attract investment to Africa and create jobs, we need transparent rules and stable political systems,” she said. “Corruption remains one of the major reasons investors hesitate.”
While praising Liberia’s peaceful democratic transition and political stability, which she described as an example during recent elections, Brzozowska called for further reforms to improve the country’s reputation for predictability and fairness in business regulation.
“Apart from political stability, Liberia can do more to strengthen its reputation for predictable business rules,” she said.
She concluded by emphasizing the importance of regional cooperation.
“No national effort can succeed without cooperation with other countries in the region. Only by working together can we effectively confront these challenges.”
