The Liberian Senate is currently deliberating on a proposal to conduct a comprehensive audit of all government institutions that have received funding from the United States Agency for International Development (USAID) between 2018 and 2025. This initiative, spearheaded by Montserrado County Senator Saah H. Joseph, aims to ensure transparency and accountability in the utilization of donor funds, a critical aspect of good governance and responsible financial management. The audit’s scope encompasses an assessment of USAID fund allocation and disbursement processes, adherence to financial regulations, and the overall effectiveness of projects financed by the agency. This scrutiny is intended to provide the Legislature with a clearer understanding of the financial landscape, potentially informing decisions regarding the 2025 national budget, including potential revisions or reallocations to address any funding gaps resulting from the cessation of USAID support.
Senator Joseph’s call for an audit comes in the wake of President Donald Trump’s decision to cancel USAID funding to Liberia, a move with significant implications for the country’s development agenda. USAID has been a major development partner, contributing substantial financial and technical assistance across various sectors, including governance, infrastructure development, education, healthcare, and economic growth. The audit is therefore not merely a routine financial review but also a crucial step in assessing the impact of this funding cut and formulating strategies to mitigate its effects. The Liberian government, recognizing the gravity of the situation, is actively working to address the challenges posed by the funding withdrawal.
The Liberian Minister of Finance and Development Planning, Augustine Kpehe Ngafuan, has acknowledged the direct and indirect repercussions of the USAID funding cancellation. He noted that several international organizations that previously received support through USAID have also scaled down their operations in Liberia. This ripple effect underscores the interconnected nature of development assistance and the potential for funding cuts in one area to impact other sectors. With USAID being Liberia’s second-largest donor after the World Bank, its withdrawal represents a substantial loss of resources, impacting ongoing and planned development projects.
The Minister further highlighted the scope of USAID’s contribution, revealing that the agency had committed a total of US$422 million to Liberia between 2021 and 2029. Moreover, agreements were in place for an additional US$100 million to support critical sectors such as education, health, and agriculture before President Trump’s decision halted these initiatives. The sudden cessation of these funds presents a significant challenge for the Liberian government, requiring a reassessment of budgetary priorities and the exploration of alternative funding sources.
In response to the funding crisis, the Ministry of Finance has conducted a comprehensive analysis of the short-term and long-term impacts of the USAID withdrawal. This analysis, which will be presented to President Boakai and the 55th Legislature, aims to provide a roadmap for navigating the challenges ahead. The government’s proactive approach underscores its commitment to mitigating the disruption caused by the funding cut and ensuring the continued progress of crucial development programs. This proactive approach signifies the government’s commitment to ensuring the continued progress of crucial development programs.
The proposed audit, therefore, represents a crucial step in ensuring transparency and accountability in the management of public funds, particularly in light of the USAID funding withdrawal. By meticulously examining the utilization of these funds, the audit will equip the Liberian government with the necessary information to make informed decisions about resource allocation and budgetary adjustments. This will strengthen the foundation for sustainable development and responsible financial management, fostering public trust and ensuring the efficient use of resources for the benefit of all Liberians. Moreover, the audit will provide valuable insights into the effectiveness of USAID-funded projects, informing future development strategies and partnerships.
