[Liberian Observer] The House of Representatives has passed President Joseph Nyuma Boakai's proposed legislation…

The House of Representatives has passed President Joseph Nyuma Boakai's proposed legislation seeking to amend Chapter 50(B) of Title 12 of the Executive Law of Liberia, paving the way for broader reforms at the Liberia Agency for Community Empowerment (LACE).

The passage of the bill marks a significant legislative milestone for the Boakai administration's efforts to strengthen community development and improve oversight of Corporate Social Responsibility (CSR) funds generated by State-Owned Enterprises (SOEs).

Following its approval, lawmakers instructed the Chief Clerk of the House to transmit the proposed legislation to the Liberian Senate for concurrence before it can be forwarded to the President for final approval.

If enacted into law, the amendment will expand LACE's administrative structure through the creation of the Office of the Deputy Executive Director for Field and Technical Services.

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The proposed legislation will also introduce a centralized system requiring State-Owned Enterprises to remit a portion of their Corporate Social Responsibility allocations into an account managed under the supervision of LACE.

Government officials believe the reform will strengthen the agency's financial capacity and improve its ability to implement sustainable community development projects across the country.

Supporters argue that the measure will also enhance transparency and accountability in the management of CSR resources while ensuring that development projects are distributed more equitably throughout Liberia.

Before the bill was passed, the House Standing Committee on Good Governance and Law Reform invited legal practitioner Cllr. Samuel S. Pearson to provide expert legal analysis on the proposed amendment.

Appearing before the committee, Pearson maintained that the Legislature possesses clear constitutional authority to enact the proposed law.

He relied principally on Articles 5 and 7 of the Constitution, arguing that both provisions require the State to promote national development, encourage economic growth, and ensure that Liberia's resources are managed for the benefit of all citizens.

According to Pearson, strengthening LACE's mandate would provide a more effective institutional framework for coordinating and monitoring community development initiatives financed through Corporate Social Responsibility programs.

He noted that many State-Owned Enterprises currently undertake CSR activities independently, but Liberia lacks a centralized mechanism capable of tracking expenditures, measuring project outcomes, and ensuring accountability.

Pearson told lawmakers that the absence of such a framework has made it difficult to determine whether CSR investments are producing meaningful and measurable benefits for communities across the country.

Under the proposed amendment, LACE would establish and maintain a national database of CSR projects, monitor implementation, evaluate developmental impact, and help prevent duplication of projects by various public institutions.

The legal expert further argued that centralized oversight would improve transparency while ensuring a fair geographical distribution of community development initiatives.

Pearson also emphasized that the proposal aligns with Liberia's broader legal framework governing public accountability, including the Public Financial Management Act, the General Auditing Commission Act, and the Liberia Anti-Corruption Commission Act.

Addressing concerns about institutional expansion, Pearson clarified that the amendment does not seek to establish a new government agency but rather strengthens an existing institution with years of experience implementing community-based development programs.

He said LACE has long played an important role in poverty reduction, rural development, local economic empowerment, and the construction of community infrastructure throughout Liberia.

To support his argument, Pearson cited international examples, including India's Companies Act of 2013, which requires qualifying companies to devote a percentage of their profits to Corporate Social Responsibility activities while publicly reporting their expenditures.

He also referenced Nigeria's Petroleum Industry Act of 2021, which established Host Community Development Trusts to ensure that communities benefit directly from petroleum operations.

South Africa's corporate governance framework was likewise highlighted as an example of how structured reporting and accountability mechanisms have strengthened corporate social investment programs.

Pearson further argued that the proposed amendment would help Liberia advance several United Nations Sustainable Development Goals by improving investments in poverty reduction, education, healthcare, clean water, infrastructure, and sustainable communities.

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He suggested that the reform could eventually support the creation of a National Community Development Fund to improve the transparent management of resources dedicated to local development.

According to Pearson, State-Owned Enterprises manage assets that belong to the Liberian people and therefore have a responsibility to ensure that a portion of their revenues contributes directly to improving living conditions in underserved communities.

He maintained that requiring annual CSR contributions, reporting obligations, independent audits, and public disclosure measures would significantly strengthen public confidence in the management of community development resources.

The legal practitioner concluded that the proposed amendment enjoys firm constitutional and policy support and represents an important opportunity to establish LACE as Liberia's principal institution for coordinating Corporate Social Responsibility and community development initiatives.

The proposed LACE Amendment Act now awaits concurrence by the Liberian Senate before being forwarded to President Boakai for signature into law.