A compliance audit conducted by the General Auditing Commission (GAC) of Liberia has implicated Sylvester M. Grigsby, Minister of State for Presidential Affairs, and Cornelia Kruah-Togba, Deputy Minister for Administration, in the alleged misappropriation of over US$11.5 million and nearly L$1 million from the Ministry’s Supplementary Payroll. The audit, covering the period from January 2018 to December 2024, focused on compliance with legislative decisions, laws, regulations, and established codes concerning the Ministry’s Supplementary Payroll System. The GAC’s primary objective was to determine whether the Ministry adhered to established procedures regarding recruitment, placement, pay grades, appraisals, promotions, separations, turnover, staff existence, and internal control systems related to supplementary payroll. The findings were to be submitted to the National Legislature and the Office of the President.
The GAC report, signed by Auditor General P. Garswa Jackson, highlighted several significant irregularities. A key finding was the Ministry’s failure to present 74 newly hired supplementary personnel for verification by the audit team. This prevented the GAC from confirming their physical existence, a violation of Regulation T(5) (1) of the Public Financial Management (PFM) Act. Further investigation revealed these employees were being paid a combined monthly salary exceeding US$36,000, drawn from a budget line designated for “consultancy.” Despite being granted additional time, the Ministry failed to produce these employees for verification, raising serious concerns about their legitimacy.
The audit revealed further financial discrepancies and mismanagement. The Ministry overspent its approved budget for supplementary personnel by US$3,506,271.00. A variance of US$4,537.69 existed between the gross salary recorded in the close-out payroll and the gross salary per the personnel listing. Unpaid cheques worth US$76,440.00, issued to the 74 unverified employees, were not voided and the funds retained as required. Crucially, the Ministry failed to maintain proper documentation, including approved monthly payroll journals, debit instructions, associated bank statements, and supporting documentation for salary transactions totaling US$7,933,573.01 and L$964,766.21 recorded in the Integrated Financial Management Information System (IFMIS) Ledger.
The GAC audit also identified systemic weaknesses in the Ministry’s internal control system. These included a lack of segregation of duties and inadequate authorization within the payroll management system. The absence of an approved Human Resource Policy and Procedures, a finalized and operationalized Job Description Policy Document, and a training and development plan further exacerbated the vulnerabilities. The audit found no evidence of established procedures for payroll origination, review, and corroboration by relevant departments before disbursement. These pervasive deficiencies significantly increase the risk of fraud and error, compromising the reliability of the Ministry’s internal control framework.
In response to the GAC report, Deputy Minister Kruah-Togba, while acknowledging the audit, offered an alternative explanation for the discrepancies. She claimed the Ministry was collaborating with the Civil Service Agency (CSA) to catalog the employees in question. She argued that the 74 “supplementary staff” represented a transition from a previous payroll system, which included 721 individuals lacking employment letters, contracts, or attendance records, most of whom did not work for the Ministry. She stated that the new supplementary staff had employment letters and contracts, and their files were undergoing verification by the CSA. However, the GAC deemed this explanation inconsequential for the audit, prioritizing physical verification of the employees.
Kruah-Togba further explained that individuals holding positions of confidence and security to the President, along with other political appointees, were added to the CSA payroll as civil servants. This included staff from the President’s Office, the President’s residence, the First Lady’s office, and personal staff of the Minister and other political appointees, including drivers. She argued that these individuals, according to the Civil Service Standing Order, cannot be replaced or dismissed, requiring their continued employment within the Ministry even after transfer from their sensitive posts. This explanation, however, does not address the core issues raised by the GAC regarding the lack of proper documentation, internal control weaknesses, and the inability to verify the existence of the 74 supplementary personnel. The audit findings raise serious questions about financial management practices within the Ministry of State for Presidential Affairs and call for further investigation and accountability.
