Business: ‘Scandal in HPX’s $25 Million Deal’

Liberia-Reports have emerged that High Power Exploration (HPX) has allegedly proposed a $25 million deal to the Liberian government for the creation of a National Rail Authority, with the agreement expected to be finalized in Australia by early next week.

This proposal, however, comes amid growing concerns about transparency and potential corruption, as inside sources reveal that several high-ranking Liberian officials are demanding additional funds before signing off on the deal.

The proposed agreement follows a report from one of HPX’s media outlets, Liberia Economy, which stated that HPX had offered to cover the costs of establishing a National Rail Authority.

The move is seen as an effort to remove ArcelorMittal as the operator of Liberia’s railway, a critical infrastructure used for transporting iron ore from Nimba County to the port city of Buchanan.

This latest development raises fears of another scandal akin to HPX’s previous alleged illegal payment of $30 million to the administration of former President George Weah, despite no formal agreement between the company and the Liberian government.

That payment triggered widespread outrage and highlighted Liberia’s vulnerability to backdoor deals that risk undermining public trust.

A Warning to the Liberian Government

The Liberian government is now faced with a crucial decision, either to proceed with the proposed $25 million deal or risk repeating the mistakes of the past.

The controversial $30 million payment from HPX to the Weah administration, made outside of any formal contract, serves as a cautionary tale of how quickly questionable dealings can erode government credibility and deter responsible foreign investment.

The demand for additional funds by some government officials in relation to the current proposal raises significant red flags.

The creation of a National Rail Authority could be a vital step in improving Liberia’s infrastructure, particularly as the country seeks to position itself as a gateway for transporting iron ore.

However, any deal that is influenced by the interests of foreign companies or individual government officials rather than the national interest risks further entrenching corruption and mismanagement in the country’s public institutions.

Guinea’s Investment and HPX’s Increasing Isolation

Adding to the complexity of the situation is Guinea’s reluctance to engage with HPX’s plans to transport ore through Liberia.

Guinea’s military government, which is overseeing significant infrastructure development in the country, has shown little interest in allowing HPX to export ore via Liberia.

Instead, Guinea is focusing on its own rail projects, aimed at transporting iron ore from the Simandou mines in southeastern Guinea to its own coastline.

China has invested over $15 billion in Guinea’s railway construction and port facilities, making it unlikely that the Guinean government will alter its course to accommodate HPX’s plans.

As a result, Liberia faces the possibility of being drawn into a deal that could leave it legally and financially exposed, especially if Guinea continues to bypass Liberia in favor of developing its own infrastructure.

The Future of Liberia’s Rail System: Should HPX Be Trusted?

As HPX pushes for the establishment of a National Rail Authority in Liberia, the government must carefully consider whether this is in the country’s best interest.

While the $25 million offer may appear attractive, Liberia’s leaders must evaluate the long-term consequences of partnering with a company that has been linked to questionable past deals.

Liberia’s rail infrastructure is crucial to the nation’s economic future, particularly as neighboring countries seek to develop their natural resources.

However, this infrastructure should not be leveraged for the benefit of foreign entities without clear and transparent terms that prioritize the interests of the Liberian people.

The alleged proposal from HPX represents a critical moment for the administration of President Joseph Boakai.

The government can either follow the path of the previous administration, risking another scandal and further damaging the country’s international reputation, or it can choose to act in the long-term interests of its citizens by demanding transparency, accountability, and a fair deal.

With Guinea uninterested in using Liberia’s rail infrastructure and China heavily invested in its own projects, Liberia must question whether HPX’s proposal is worth the risk

The creation of a National Rail Authority should be a decision made in the best interests of the Liberian people, not the ambitions of foreign companies or a select group of officials.

The Liberian people deserve far better this this kind of one sided deal.

The government must ensure that any deal related to the country’s rail system is conducted with integrity and serves the nation’s development goals, rather than the profit-driven motives of external actors.