IPNEWS: A high-stakes battle over Liberia’s strategic railway infrastructure has exposed deep concerns over corporate influence, corruption, and foreign interests attempting to manipulate the government.
High Power Exploration (HPX), backed by Canadian billionaire Robert Friedland, has been aggressively lobbying the Liberian government for exclusive access to the Yekepa-Buchanan railway. This railway, originally destroyed during Liberia’s civil war, was rehabilitated with nearly $800 million in investment from ArcelorMittal. It serves as a critical transport corridor for the company, Liberia’s largest private employer and biggest contributor to government revenue.
Despite this, HPX and its local ally, Ivanhoe Atlantic, have been using various backdoor channels to pressure the Liberian government into granting them control of the railway. Their efforts have sparked fierce opposition from industry stakeholders and reignited concerns about undue foreign influence over Liberia’s mining and infrastructure sectors.
Over the past several weeks, the Liberian government has faced mounting pressure, with HPX issuing veiled threats to gain access to the railway or face attrition. This aggressive lobbying comes despite HPX and Ivanhoe Atlantic initially proposing a $5 billion “Liberty Corridor” project, which was supposed to include the construction of a new rail line. Critics argue that HPX’s shift toward demanding access to existing infrastructure undermines efforts to establish an equitable railway policy that allows multiple users.
HPX has leveraged political connections and financial incentives to push its agenda. In a particularly controversial move, HPX secretly paid $35 million to the administration of former President George Weah under a framework agreement that was never ratified by the Liberian legislature. Many observers view this payment as a blatant act of business corruption, designed to sway government decisions in HPX’s favor.
But more so, at the heart of the HPX deal is Robert Gumede, a South African businessman and CEO of Guma Group, a key partner in HPX. Gumede, who has faced multiple allegations of corruption in South Africa, has been linked to dubious contracts in Liberia as well. His involvement in the railway deal raises further questions about the integrity of the negotiation process.
In South Africa, Gumede has been embroiled in a high-profile scandal involving the procurement of personal protective equipment (PPE) during the COVID-19 pandemic. According to South Africa’s Special Investigating Unit (SIU), Gumede orchestrated an overpriced contract worth nearly R600 million (approximately $33.6 million) through Red Roses Africa, a company closely linked to him. The investigation found that Red Roses Africa dramatically inflated the price of essential goods—selling 25-liter containers of hand sanitizer to the South African Police at a 370% markup, generating nearly R400 million ($22.4 million) in excessive profits. South African authorities have since sought to recover millions in what they describe as unlawful gains from the deal.
Gumede has denied any wrongdoing, but the scandal has tarnished his reputation and led to widespread calls for greater scrutiny of his business dealings. His expansion into Liberia, particularly his role in securing contracts with the government, has drawn the attention of anti-corruption advocates in the country.
Gumede’s business dealings in Liberia extend beyond the railway dispute. Earlier in 2024, his name surfaced in a separate controversy involving the importation of 285 units of earth-moving equipment for road maintenance in Liberia.
The deal, which was announced by Minister of State without Portfolio Mamaka Bility, whom many have accused of feeding HPX with key business details from the office of the president was allegedly conducted without proper procurement procedures, raising alarms within the Legislature.
Lawmakers and transparency advocates have raised concerns about the lack of legislative oversight and the potential for backdoor dealings.
The controversy surrounding Gumede’s involvement in Liberia especially his partnership with HPX has drawn sharp criticism from legislators and civil society groups.
Senator Amara Konneh, Chair of the Senate’s Public Accounts and Audit Committee, has called for a thorough review of the government’s engagement with foreign investors. In a social media post, Konneh questioned why the administration would enter into informal agreements with politically connected businessmen without proper due diligence.
John Morlu, a former Auditor General of Liberia, echoed these concerns, arguing that the government should acknowledge its missteps and subject such agreements to proper legislative scrutiny. “Government business cannot be conducted based on friendships and gentleman’s agreements,” Morlu said. “Transparency and accountability must be the guiding principles of Liberia’s economic decisions.”
Despite not having a legally ratified agreement with the Liberian government, HPX has continued to pursue strategic influence over Liberia’s railway policy. In an August 23, 2024, communication, HPX’s President and CEO, Bronwyn Barnes, proposed providing budgetary support for the formation of a National Rail Authority, an entity that would oversee the country’s railway system.
“We are prepared to provide budgetary support to the Government of Liberia for the formation and initial operations of the National Rail Authority. This demonstrates our commitment to ensuring that the rail management system operates under the highest international industry standards and with full transparency,” Barnes stated.
Analysts and government insiders believe this “budgetary support” is merely another form of financial inducement aimed at securing favorable terms for HPX. Critics point out that this commitment comes as HPX seeks to finalize its Access Agreement with the government, raising suspicions that the offer is a strategic attempt to circumvent established procurement laws.
The President and his government must firmly reject HPX’s agenda, as it is a calculated attempt to derail ArcelorMittal’s expansion—an initiative that promises thousands of new jobs, increased government revenue, and enhanced corporate social responsibility payments to host counties. HPX’s track record in Liberia is one of manipulation and obstruction, not investment. The administration must recall the massive propaganda campaign orchestrated by HPX and its allies in 2021, which led to the rejection of ArcelorMittal’s amended Mineral Development Agreement based on baseless accusations. That disinformation campaign cost Liberia billions in potential revenue and economic benefits. Now, history is repeating itself, with HPX and its subsidiary, Ivanhoe Atlantic, pushing for control of infrastructure they have made no financial commitment to develop. Unlike ArcelorMittal, which has heavily invested in rehabilitating the Yekepa-Buchanan railway, HPX and Ivanhoe Atlantic have no actual projects or assets in Liberia—their sole interest is to extract resources from Guinea while using Liberia as a transit point. However, Guinean authorities have reportedly stated that they will not permit their ore to be transported through Liberia, making HPX’s entire proposal questionable and unfeasible. The government must recognize this for what it is—an attempt to sabotage a legitimate investor while advancing an agenda that offers Liberia nothing in return Bottom of Form
