The Liberian Senate launched an inquiry into funding shortfalls within the nation’s health sector, summoning officials from the Ministry of Finance and Development Planning (MFDP) and the Central Bank of Liberia (CBL) to provide explanations. The inquiry was prompted by a memo circulated to County Health Officers, threatening the reversal of their first-quarter budgetary allocations if unspent by the end of March, despite these funds not yet being disbursed. This discrepancy between the demand for expenditure and the lack of disbursement formed the core of the Senate’s concerns.
The joint public hearing, held on March 20, 2025, focused on uncovering the reasons behind the delayed disbursement of crucial operational funds to hospitals across the country. Central to the investigation was the clarification of the Ministry of Finance’s memo, which warned of impending financial reversals. The Senate sought to understand the rationale behind this directive, given the reported lack of disbursement.
CBL Executive Governor, Henry F. Saamoi, clarified the bank’s position, asserting that the CBL has no policy allowing the reversal of funds once deposited into an institution’s account. He emphasized that accounts remain accessible to their owners once funded, dismissing the notion that the CBL plays any role in reversing county health allocations. Mr. Saamoi shifted responsibility for any funding restrictions to the Ministry of Finance, suggesting they were better positioned to explain the situation.
Deputy Minister for Budget at the MFDP, Tenneh G. Brunson, provided a somewhat ambiguous response. While neither confirming nor denying the existence of the memo, she alluded to provisions within the Public Financial Management Law (PFM-Law). She interpreted the law to permit County Health Officers a three-month grace period after the fiscal year’s end to utilize allocated funds, but not beyond that period. However, she failed to cite the specific section of the PFM-Law supporting this interpretation. Furthermore, she suggested that funds deposited in the County Health Teams’ accounts must be spent between March 21-31, with any remaining balance subject to reversal. She attributed the CAG’s memo to this provision, assuming it was issued in anticipation of funds being disbursed shortly before the deadline. However, she admitted to not having a definitive answer as to why such a short deadline was imposed, especially given the lack of disbursement.
The Deputy Minister’s explanation was met with dissatisfaction and further questioning from the senators. They expressed concern over the Ministry of Finance imposing spending deadlines while simultaneously delaying the disbursement of the very funds required to meet those deadlines. The senators pointed to the fact that the 2024 budget allocations, for which the March deadline applied, had not been fully disbursed, raising questions about the practicality and fairness of the Ministry’s directive.
The Senate’s concerns further intensified due to the perceived ambiguity in Deputy Minister Brunson’s response. They questioned her inability to cite specific sections of the PFM-Law supporting her claims, particularly given her extensive experience within the Ministry. This lack of clarity deepened the Senate’s suspicion that the Ministry’s actions might not be fully aligned with existing legal frameworks and fueled their determination to uncover the underlying reasons for the funding discrepancies within the health sector. The hearing highlighted a significant disconnect between policy pronouncements and actual implementation, raising concerns about potential mismanagement of public funds designated for critical healthcare services.
