MONROVIA – A damning audit report by the Normal Auditing Fee (GAC) has revealed that the Ministry of Finance and Improvement Planning (MFDP) facilitated disbursements amounting to US$2,806,470 in violation of the 2024 Nationwide Price range. The funds have been channeled to the Ministries of Public Works and Labor, the Liberia Airport Authority, and the Bureau of Concessions with out legislative approval or an authorized supplementary funds, in line with the report.
By Gerald C. Koinyeneh, [email protected]
The audit, masking the interval January 1 to December 23, 2024, additional revealed that the MFDP didn’t account for transactions totaling US$2,850,035.38. In response to Auditor Normal P. Garswa Jackson, Sr., these transactions have been consummated with out supporting documentation corresponding to cost vouchers, invoices, or supply notes—elevating questions on their validity and accuracy.
“Within the absence of satisfactory supporting paperwork, the validity, incidence, and accuracy of funds might not be assured. This will likely result in misappropriation of public funds,” the GAC cautioned.
The report additionally flagged a broader sample of fiscal indiscipline on the ministry. It discovered that the MFDP under-disbursed budgetary allotments to 106 ministries and businesses by greater than US$78.2 million, with no proof that the Finance Minister or sector ministers issued warnings about important funds variations, as required by the Public Monetary Administration (PFM) Act.
The GAC warned that unauthorized under-disbursements may impair businesses’ capability to meet their mandates and really useful that heads of presidency businesses promptly inform sector ministers about any circumstances prone to materially have an effect on budgetary outcomes. Sector ministers, in flip, are anticipated to inform the Minister of Finance.
The audit additionally cited irregularities in extra disbursements. It famous that the MFDP facilitated further expenditures of US$2,806,470 above the authorized funds with out legislative approval. The GAC warned that such practices may result in the misapplication and misappropriation of public assets.
On income administration, the GAC highlighted issues on the Liberia Income Authority (LRA), which established 36 transitory accounts in industrial banks for presidency income assortment. Nevertheless, auditors discovered no proof of reconciliation reviews for these accounts.
The reported acknowledged that there’s a danger that non-daily reconciliation of the income transitory accounts might facilitate fraudulent monetary practices, resulting in theft and/or non-reporting of serious authorities income. It really useful each day reconciliation and rapid sweeping of funds into the Consolidated Fund on the Central Financial institution of Liberia, with no withdrawals aside from financial institution costs.
Given the seriousness of its findings, the GAC urged the Speaker and Members of the Home of Representatives, together with the Senate Professional-Tempore and Members of the Liberian Senate, to make sure pressing implementation of the report’s suggestions.
MFDP Responds to GAC Report
In response to FrontPage Africa’s inquiry relating to the Normal Auditing Fee (GAC) report, the Ministry of Finance and Improvement Planning by Comptroller and Accountant Normal of Liberia, Edwood Netty, reaffirmed the ministry’s dedication to strengthening monetary administration methods, noting that the report—highlighting a big discount in unsupported funds—is an indication of ongoing progress.
Netty defined that the flagged quantities are largely because of challenges in archiving and doc retrieval. “Lots of the transactions in query originate from county-based places of work, together with rural well being facilities and native authorities authorities. These entities submit reviews in bulk to their respective sector ministries—corresponding to Well being and Inside Affairs—for reporting functions. Whereas copies of supporting paperwork are forwarded to MFDP for cost processing, the originals are retained by the sector ministries for audit verification,” he mentioned.
Concerning the remaining quantities categorized as “Funds with out Proof of Sufficient Supporting Paperwork,” Netty emphasised that operational constraints in archiving and retrieving paperwork performed a key position. “All paperwork can be found in hardcopy at MFDP,” he acknowledged. “Nevertheless, the GAC offered a five-day window to current supporting documentation. Given the quantity and motion of information, retrieving every thing inside that timeframe was difficult, particularly contemplating the audit itself spanned 4 months.”
To deal with these challenges, MFDP is implementing an Digital Doc Administration System (EDMS) designed to digitize and set up all incoming and outgoing documentation. The system will allow quicker entry throughout audits, enhance monitoring, cut back reliance on handbook submitting, and combine with the present monetary administration system to boost reporting accuracy.
“This reform is a part of our broader technique to modernize inner methods, promote transparency, and be sure that Liberia’s public funds are audit-ready,” Netty mentioned. “We stay dedicated to working with all authorities establishments to enhance documentation requirements and strengthen accountability throughout the general public sector.”
The EDMS initiative is anticipated to streamline operations and reinforce MFDP’s position in offering environment friendly, clear, and responsive monetary oversight.
The Ministry of Finance has, through the years, been dogged by allegations of off-budget spending. In September 2024, the Liberia Anti-Corruption Fee (LACC) introduced the launch of an investigation into claims that the Authorities of Liberia engaged in off-budget expenditures totaling US$15 million.
In response to reviews, the Ministry of Finance and Improvement Planning approved a number of controversial bills below the Unity Occasion–led authorities between January and August 2024.
Expenditure Breakdown
Among the many reported expenditures, the federal government allotted US$2,307,609 to “unexplained miscellaneous” bills and US$2.5 million for covert operations by the Nationwide Safety Company (NSA). The Home of Representatives reportedly spent US$1.5 million on particular classes, whereas the Senate expended US$812,612 for comparable actions.
In a press release on the time, the LACC underscored the gravity of the allegations:
“In gentle of those claims, we want to tackle the matter in a fashion in keeping with our mandate to advertise transparency, accountability, and good governance. We take these allegations critically, as they contact on issues which are core to our institutional aims. Off-budget expenditures, if confirmed, can undermine public belief in governance, weaken fiscal self-discipline, and pose dangers to the nation’s monetary integrity.”
The LACC mentioned it had commenced a preliminary evaluate of the allegations, to be adopted by a complete investigation aimed toward verifying the claims, establishing accountability, and making certain that authorized procedures are adopted.
“As an establishment charged with safeguarding public assets, we guarantee the general public that we are going to go away no stone unturned on this investigation. If proof of wrongdoing is discovered, we are going to take the mandatory authorized actions, together with recommending sanctions, prosecutions, and different corrective measures,” the assertion concluded.
