Monrovia – The Common Auditing Fee’s (GAC) newest audit of the Nationwide Social Safety and Welfare Company (NASSCORP) paints a troubling image of economic indiscipline at one among Liberia’s most crucial state-owned enterprises — a recurring theme within the nation’s public sector administration.
By Gerald C. Koinyeneh, [email protected]
In its Administration Letter on the monetary statements for fiscal years 2022 and 2023, the GAC uncovered a string of violations starting from unremitted taxes to tens of millions of {dollars} in undocumented funds and unrecorded revenues at NASSCORP’s visitor homes.
The findings spotlight not solely weaknesses in inside management but additionally persistent disregard for Liberia’s Income Code and Public Monetary Administration (PFM) Act, two key pillars meant to safeguard public assets.
A Sample of Non-Compliance
In accordance with the audit, NASSCORP failed to arrange its monetary statements in step with Worldwide Monetary Reporting Requirements (IFRS), as required by legislation. Though administration had contracted Deon & Leon Worldwide to facilitate IFRS conversion, the method stays incomplete—regardless of earlier commitments to finalize it by 2024.
The GAC famous a number of circumstances of misclassification of expenditures, together with petty money transactions totaling US$6,294.40 and different bills amounting to US$4,067.44, which had been wrongly recorded beneath unrelated price range traces.
Much more regarding, the audit revealed that income collections from NASSCORP’s Kakata Visitor Home — US$41,558.95 in 2022 and US$45,675 in 2023 — had been made with out invoices, payments, or receipts. Expenditures on the visitor home had been reportedly authorised verbally, with no supporting documentation accessible.
“The completeness and accuracy of income and expenditures will not be assured; subsequently, the monetary statements could also be misstated,” the report cautioned.
Hundreds of thousands Spent With out Supporting Paperwork
The GAC additionally flagged US$3.9 million in funds made with out enough documentation — US$1,199,632.09 in 2022 and US$2,730,164.92 in 2023. Whereas NASSCORP administration later produced some lacking vouchers and invoices, auditors maintained that the late submission undermined accountability and mirrored poor monetary self-discipline.
NASSCORP, in its response, admitted that its monetary reviews weren’t IFRS-compliant and stated efforts had been ongoing to finish the transition by the second quarter of 2025. Administration added that an digital doc administration system was being developed to strengthen record-keeping.
Nonetheless, the Auditor Common dismissed these assurances, insisting that administration’s responses “didn’t adequately deal with the problems raised” — a diplomatic approach of claiming the reasons had been inadequate and unconvincing.
Tax Violations: Over US$1.3 Million Unremitted
Maybe essentially the most damning discovering pertains to violations of the Income Code. The GAC found that NASSCORP didn’t withhold and remit over US$1.3 million in Items and Providers Tax (GST) to the Liberia Income Authority (LRA) — a severe breach of Sections 905 (J) and (M) of the legislation.
Auditors discovered that administration didn’t withhold and remit US$144,385.15 in GST on items and companies procured and withheld one other US$1,199,890.05 from suppliers with out proof of remittance.
“Failure to withhold and remit GST could deny the Authorities of Liberia the much-needed tax income,” the GAC warned, noting that the lapses entice penalties beneath Part 52 of the Income Code.
The report additionally referenced a separate LRA tax evaluation of US$1,874,775.27 — protecting salaries and lease taxes withheld between January 2018 and October 2022 — of which solely US$200,000 had been paid. The remaining arrears, together with US$139,564.60, stay unsettled regardless of a cost plan signed in March 2023.
Administration blamed the delay on a brand new cost association being labored out with the LRA, lowering the excellent legal responsibility to US$74,614.20. However the GAC rejected this rationalization, emphasizing that administration had didn’t account for over US$1.2 million in GST and had not adhered to present cost schedules.
The Broader Implications
The audit’s findings as soon as once more elevate troubling questions on monetary accountability and governance inside Liberia’s public establishments. NASSCORP manages pension funds and social safety contributions for tens of hundreds of employees — making monetary transparency not only a regulatory obligation, however an ethical crucial.
The state of affairs mirrors the GAC’s audit report of the Liberia Electrical energy Company (LEC), which coated fiscal years ending June 30, 2018, 2019, 2020, 2021, the Particular Price range 12 months (SBY) 2021, and fiscal years 2022 and 2023. That audit uncovered vital governance and administration lapses at LEC, elevating severe issues about oversight, operational planning, and the integrity of main energy sector agreements.
Within the case of NASSCORP, analysts warn that persistent lapses — together with unrecorded revenues, undocumented funds, and tax non-compliance — erode public belief and deprive the federal government of important income. In addition they expose the establishment to potential penalties, authorized challenges, and reputational harm.
The Common Auditing Fee (GAC) has urged NASSCORP to totally account for all unsupported expenditures, automate its billing and documentation methods, and implement strict compliance with each the Public Monetary Administration (PFM) Act and the Income Code of Liberia.
Until these reforms are urgently carried out, the company dangers turning into one other cautionary story in Liberia’s lengthy wrestle to instill fiscal self-discipline and accountability inside its state-owned enterprises.
