LTM Accused of Fraud—Legal and Business Risks Mount
- Michael T
- Jul 29, 2025
- 2 min read
The Liberia Traffic Management (LTM) concession agreement has been accused of fraud and serious legal and business risks are mounting. Senator Nathaniel McGill, former Minister of State for Presidential Affairs, revealed that the current LTM concession agreement in force differs significantly from the original negotiated document, suggesting possible fraud or unauthorized alteration61. This issue is compounded by Liberia's Public Procurement and Concessions Act (PPCA), which prohibits material misrepresentation and grants the government authority to cancel fraudulent contracts and seize assets. The Liberian Penal Code also provides for criminal prosecution under fraud and economic sabotage provisions.
From a business perspective, companies involved in fraudulent contracting risk being blacklisted by the government. This could undermine LTM's business viability1.
The impact on workers has been equally severe. Ministry of Transport employees have protested, reporting more than 265 jobs will be lost due to the nature of the altered concession, in addition to revenue losses projected at over US$275 million over 25 years319.
Commercial drivers and unions have also condemned LTM’s enforcement practices, citing excessive fines, harassment, and income declines.
Legally, there is precedent supporting contract review and cancellation. The Supreme Court ruled in Liberia Machine Tools v. Government of Liberia (2012) and Global Commodities v. Republic of Liberia (2015) that contracts secured through deceit or without transparency and legislative approval are void ab initio and unenforceable. These rulings underpin calls for forensic examination of the LTM agreement, with lawmakers and civil society demanding the public release of all agreement versions to determine authenticity and legality61.
The agreement hands Liberia Traffic Management Inc., a foreign-owned company, control over traffic-related services including vehicle registration and driver licensing under a 25-year concession that critics describe as exploitative and detrimental to Liberia’s sovereignty and economy. The government’s annual revenue from traffic services is expected to drop significantly from around $9.1 million to just $1.5 million under this deal, while the company benefits disproportionately132.
The LTM concession case involves allegations of document fraud, breaches of procurement law, serious economic and public service implications, and growing public opposition.
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