This Anti-Corruption Helpdesk brief was produced in response to a query from a U4 Partner Agency. The U4 Helpdesk is operated by Transparency International in collaboration with the U4 Anti-Corruption Resource Centre based at the Chr. Michelsen Institute.
Query
What evidence is there on illicit financial flows stemming from the mining sector in Liberia? What are the impacts of these on the economy? What are the potential mitigation measures?
Liberia’s mining sector accounts for a significant amount of its GDP, but its economic potential is undermined by bribery and political interference in licensing and the granting of concession agreements. While data on illicit financial flows (IFFs) derived from or enabled by corruption is limited, bribery cases involving foreign companies, the prevalence of trade mispricing and existence of a professional enabler industry, suggest vulnerabilities. Corruption and IFFs in the sector create fiscal losses, lead to environmental degradation and foster instability. Best practices for mitigation include robust legal frameworks, enhanced transparency and accountancy mechanisms, greater regional collaboration and community engagement.
Contents
- Background
- Risk factors in Liberia
- Institutional vulnerabilities
- Domestic political actors
- Business actors
- Artisanal and small-scale mining
- Trade mispricing
- Smuggling networks
- Wider impacts
- Security
- Environmental
- Mitigation measures
- Strengthening regulatory frameworks
- Transparency measures
- Regional cooperation
- Community engagement
Authors
Vaclav Prusa
Reviewers
Jamie Bergin and Caitlin Maslen (TI)
Rosa Loureiro-Revilla (U4)
Date
07/04/2025
Tags
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