Audit Details Procurement Abuse at LACRA Under former Team -Boakai’s Sack Decision Firmly Supported

MONROVIA – Public institutions are sustained not by personalities but by systems—rules, controls, and accountability mechanisms that protect public resources. The General Auditing Commission’s audit of LACRA exposes what happens when those systems fail simultaneously. The report documents an authority that lacked governance structures, strategic planning, credible financial records, and compliant procurement processes, raising fundamental concerns about stewardship of public funds. These findings shift the national conversation from whether leadership change at LACRA was justified to whether it could have been responsibly avoided. In a governance environment governed by law rather than discretion, the audit positions executive action not as an option but as an obligation triggered by documented non-compliance.

The General Auditing Commission has documented extensive procurement, expenditure, and statutory compliance violations at the Liberia Agricultural Regulatory Authority, revealing a pattern of weak controls and discretionary practices that undermined transparency, value for money, and adherence to Liberia’s procurement and revenue laws.

The audit found that LACRA operated without a functional procurement committee, as required under the Public Procurement and Concessions Act. The GAC noted the absence of procurement committee meeting minutes and periodic procurement reports, concluding that procurement decisions were not subject to structured oversight or collective review.

Reacting to this finding, the current LACRA administration under Director General Dan T. Saryee acknowledged that procurement oversight structures were either dormant or non-existent prior to 2025. Management says that since assuming office, procurement committees have been reconstituted and are now functioning in line with statutory requirements. According to the administration, the audit recommendations have been “keenly noted and are being implemented as part of a comprehensive procurement reform agenda.”

Further compounding the weakness identified by the GAC was the absence of an approved annual procurement plan. The audit stated that there was “no evidence of annual procurement plan approved by PPCC for procurements financed by internally generated funds.” Without an approved plan, auditors warned, procurement activities were exposed to discretion, waste, and weak value-for-money outcomes.

The Saryee-led administration says this gap has since been addressed, with annual procurement plans now prepared and aligned with approved budgets. Management describes this as a game-changing policy shift designed to eliminate ad hoc purchasing and ensure predictability, competition, and transparency in procurement activities.

As a direct consequence of weak planning, the GAC identified several procurements executed outside approved plans, including the purchase of vehicles totaling US$83,000. These procurements, the audit noted, were not supported by evidence of prior planning or approval through established procurement channels.

Current management has distanced itself from these legacy transactions, stating that vehicle and asset procurement are now subject to strict pre-approval and documentation requirements. Officials say procurement decisions are now reviewed against approved plans before execution, closing loopholes identified by the audit.

More serious were findings related to non-competitive procurement. The Commission documented procurements exceeding US$220,000 for goods and services awarded without evidence of competitive bidding. The audit observed “no evidence of bid documents from unsuccessful bidders, bid opening minutes, bid adverts and notice to unsuccessful bidders.” Such omissions, the GAC warned, impaired competition and increased the risk of favoritism or inflated pricing.

According to LACRA’s current leadership, competitive procurement has since been reinstated as the default standard. Management says procurement staff have been retrained on PPCC procedures and that deviations from competitive bidding now require documented justification and approval, measures intended to prevent a recurrence of the abuses identified in the audit.

Expenditure management failures further deepened concern. The audit identified payments totaling tens of thousands of dollars made without adequate supporting documentation such as invoices, delivery notes, tax clearances, business registrations, or service completion certificates. The GAC cautioned that in the absence of such documentation, “payments may be made for goods not delivered or services not performed,” and that the validity and accuracy of expenditures could not be assured.

Officials under the current administration say payment processing procedures have since been tightened, with expenditures now subjected to verification before disbursement. Management notes that supporting documentation is now treated as mandatory, describing this reform as central to restoring expenditure discipline.

The audit also identified a pattern of third-party payments made to employees rather than directly to vendors or legally authorized representatives. According to the GAC, “paying cash to employee for subsequent disbursement to vendors may facilitate misappropriation of funds” and could enable management to override procurement controls.

The Saryee-led administration says such practices have been discontinued. Officials state that payments are now made directly to vendors through approved banking channels, reducing discretion and strengthening audit trails.

Tax and statutory compliance failures featured prominently in the audit’s findings. The GAC reported that LACRA failed to withhold and remit Personal Income Tax, Service Tax, and other statutory deductions as required under the Revenue Code of Liberia. The Commission warned that such failures denied the Government of Liberia much-needed revenue and exposed the institution to penalties for non-compliance.

Current management says tax compliance has since been prioritized, with deductions now withheld and remitted in accordance with law. Officials say the audit has informed new compliance checklists introduced to ensure statutory obligations are met consistently.

The audit further found that LACRA failed to remit employee and employer contributions to the National Social Security and Welfare Corporation (NASSCORP). The GAC cautioned that non-remittance could result in penalties and could deny employees their lawful pension and social security benefits.

Management under Director General Saryee says engagement with NASSCORP has since been restored and that remittances are now current. Officials describe this step as part of rebuilding trust with employees and statutory institutions.

Payroll disbursement practices compounded these risks. The audit found that some payments were made through cash or checks rather than direct deposit, contrary to government policy promoting electronic fund transfers. Such practices, the GAC warned, increased the risk of ghost workers and payments for work not performed.

LACRA’s current leadership says payroll systems have since been strengthened, with efforts underway to fully automate payroll processing and minimize cash handling.

Taken together, the audit describes a procurement and expenditure environment marked by weak controls, non-compliance with law, and elevated risk of misapplication of public funds. These documented findings provide a factual and legal foundation for the executive decision by President Joseph Boakai to remove the erstwhile administration of LACRA in the interest of restoring integrity and public confidence.

The current Saryee-led administration maintains that the audit has become a reform compass rather than a condemnation. Officials say the findings have directly informed sweeping procurement and compliance reforms introduced since 2025, aimed at transforming LACRA into a transparent, law-abiding, and results-driven public institution.