Monrovia – A number of high-profile members of the Liberian Senate have strongly criticized the unratified settlement signed between the Authorities of Liberia and Medtech Scientific Liberia Restricted, labeling it as flawed and detrimental to the nation’s monetary integrity.
By Gerald C. Koinyeneh, [email protected]
The rebuke got here throughout a public listening to on Monday, prompted by a report from the Normal Auditing Fee (GAC), which revealed that the Liberia Income Authority (LRA) did not remit $6.7 million collected from Medtech into the federal government’s consolidated account.
Medtech, a agency contracted for monitoring and monitoring, vacation spot inspection, verification of conformity, testing, and certification providers, signed a ten-year settlement with the federal government on April 21, 2021. The deal, nonetheless, was by no means ratified by the Legislature—a significant crimson flag for lawmakers.
A Compliance Audit Report launched by the GAC protecting July 1, 2022, to October 31, 2024, uncovered a collection of economic and procedural breaches. Chief amongst them was the LRA failure to remit US$6,775,954.07—the federal government’s 20% income share from the settlement—into the Consolidated Income Account. As an alternative, the LRA allegedly diverted the funds for its personal operations.
Mentioned the GAC via Auditor Normal P. Garswa Jackson: “Non-remittance of GoL Income Through the audit, we noticed that the Liberia Income Authority (RA) didn’t remit US$6,775,954.07 into the consolidated income account, which was derived from the authorized 20% charges associated to the Vacation spot Inspection settlement between the Authorities of Liberia and Medtech Scientific Restricted. The non-remittance is a violation of Regulation B.8. (1) of the PFM Act of 2009 as Amended and Restated (2019). As the results of the non-compliance, the Authorities of Liberia is denied a lot wanted income to fund its operations.”
Violations and Noncompliance
In response to Auditor Normal P. Garswa Jackson, this act violated Regulation B.8. (1) of the Public Monetary Administration (PFM) Act of 2009, as amended in 2019. The GAC additionally reported that the LRA did not deposit Vacation spot Inspection (DI) charges into the transitory account at Ecobank, as stipulated in Part 9.1 of the contract, the GAC recognized US$1.3 million in undocumented expenditures by each LRA and Medtech from the federal government’s income share.
Supporting monetary paperwork reminiscent of vouchers, receipts, procurement information, and supply notes had been both incomplete or solely absent.
The GAC added that Medtech didn’t constantly apply the authorized service charges, violating Part 5.7 of the settlement, and key contract deliverables—together with 3D scanners, closed-circuit televisions, forklifts, and IT infrastructure—had been both not offered or lacked any documented proof of supply or implementation, in violation of Sections 5.5 and 5.6(a).
LRA’s Protection
In response, LRA Commissioner Normal Dorbor Jallah defended the company’s actions, citing Part 1822 of the Liberia Income Code and related sections of the Vacation spot Inspection Settlement. Jallah argued that the LRA was licensed to gather customs service charges straight for its operational actions.
He acknowledged that the Boakai administration has acknowledged the contract’s flaws and is dedicated to renegotiating its phrases.
“It is a choice that, beneath the President’s management, the Cupboard has made. We’ll enter negotiations to deal with all anomalies—be it the institution of a transitory account or revising the settlement phrases. Nonetheless, authorized proceedings involving Medtech on the Supreme Court docket have delayed the method.”
GAC Pushes Again
However the GAC disagreed, asserting that LRA’s justification lacked authorized grounding.
“We noticed no statutory mandate for the utilization of DI charges by the LRA for operational functions. Regulation B.8. (1) of the PFM Act mandates that each one public funds collected be paid in gross into designated financial institution accounts, with none utilization by public officers until permitted by legislation.”
The audit additional famous that from August 2021 to June 2024, the federal government’s income share was illegally held in Medtech’s account, opposite to the settlement’s phrases. As of June 2024, these funds had been reportedly transferred to the LRA–MTS Capability Constructing Fund, housed at Ecobank.
Senate Outrage
The Senate’s Public Accounts Committee, led by Senator Amara Konneh of Gbarpolu County, launched a probe into the matter. Through the committee’s listening to, senators expressed outrage and grilled Commissioner Jallah over the obtrusive irregularities.
A number of Senators embody the Amara Konneh, Dabah Vapilah, Darius Dillon criticized he contract.
Senator Momo Cyrus of Lofa County was among the many most vocal critics:
“So, I hear all the evaluation being made, a few of them are very troubling for our nation, mentioned Senator Cyrus. “And that’s why I at all times ask, why are we so poor on this nation? And with all of those endowments, we’re nonetheless rating among the many poorest nation on the planet. It’s sickening. And these are a few of the causes.”
The Committee Chairman Konneh introduced that the probe will proceed this week.
