The Center for Transparency and Accountability in Liberia (CENTAL) has issued a strong call for a comprehensive investigation into the Liberian government’s off-budget spending practices, following the release of a damning audit report by the General Auditing Commission (GAC). CENTAL’s Executive Director, Anderson D. Maimen, stressed the urgency of the situation, urging the Liberia Anti-Corruption Commission (LACC) to conduct a thorough and timely investigation into the findings, particularly those related to discrepancies in the allocation of funds to crucial sectors such as health and education. The audit report, which examined the Government of Liberia’s Consolidated Funds Account for the fiscal year 2024, revealed significant systemic weaknesses in revenue collection, disbursement procedures, and budgetary adherence. Maimen emphasized the importance of holding accountable those found responsible for these irregularities.
The GAC audit uncovered a series of concerning financial management practices within the government. One key finding was the Liberia Revenue Authority’s (LRA) failure to implement its revenue reporting software in rural areas, leading to potential gaps in transparency and increased vulnerability to corruption. This was further compounded by a lack of adequate LRA personnel in these rural tax collection centers, hindering efficient revenue generation. The audit also revealed that the Ministry of Finance and Development Planning (MFDP) disbursed over US$2.8 million beyond the approved national budget, raising serious concerns about the government’s commitment to fiscal responsibility and adherence to the Public Financial Management (PFM) Law. This act of off-budget spending echoes previous accusations against the administration regarding its disregard for budgetary constraints and legislative oversight.
Furthermore, the audit exposed significant under-disbursement of approved appropriations totaling US$78,289,600, impacting 106 ministries and agencies. This shortfall in funding allocation to essential public services further underscores the government’s mismanagement of public resources. Adding to the financial irregularities, the audit revealed that 11 State Owned Enterprises (SOEs) underpaid their income tax obligations, resulting in substantial revenue loss for the government. These enterprises were assessed to owe US$10,160,233.98 but only paid US$5,669,672.88, highlighting a concerning lack of compliance with tax regulations.
CENTAL expressed deep concern over these recurring issues, noting that similar audits in previous years have revealed equally troubling trends. Maimen stressed that the findings not only highlight systemic weaknesses in the government’s financial management practices but also call into question the sincerity of its commitment to improving resource mobilization. He called on the LACC to thoroughly scrutinize the audit report’s findings, especially those pertaining to potential violations of the PFM Law, including allegations of off-budget spending. The integrity watch group emphasized the need for transparency and accountability, urging the LACC to publicly disclose the findings and recommendations of its investigation and to ensure that those implicated in any wrongdoing are held responsible.
CENTAL also appealed to the Joint Public Accounts Committee of the Legislature to conduct comprehensive public hearings on the audit report and implement the resulting recommendations. The organization stressed the vital role of citizen engagement in demanding accountability from the government, urging the public to press for full compliance with the PFM law and other relevant regulations by the Ministry of Finance and Development Planning and all other government spending entities. This call for public participation underscores the importance of collective action in ensuring responsible and transparent use of public resources.
In addition to the call for investigations and legislative action, CENTAL also urged the General Auditing Commission and the Civil Service Agency to collaborate with the judiciary to conduct timely financial and credential audits. This call for scrutiny of the judiciary aims to identify and address any existing corruption or related issues within the judicial branch, further ensuring accountability across all branches of government. CENTAL’s comprehensive call to action emphasizes the urgent need for a multi-faceted approach to address Liberia’s persistent challenges in public financial management, requiring collaboration between government institutions, civil society organizations, and engaged citizens to ensure transparency, accountability, and the responsible use of public funds for the benefit of all Liberians.
