Audit Findings Trouble CENTAL -GAC Audit of Consolidated Account Unveils Fiscal Filths

MONROVIA – Less than two years of the Unity Party Government—especially for its very first year (2024) in office—empirical assessment of its fiscal deportment and character is not speaking well of it at all. The Supreme Audit Institution, the General Auditing Commission (GAC), has uncovered horrible transparency and accountability issues. Reminisced of its first 12 years, where the UP-led administration was almost always at odd with the GAC over unsightly audit revelations, there has been fightbacks by regime apologists and managers of the country’s fiscal space to mask and justify the 2024 Consolidated Account audit findings. But as The Analyst reports, like most pundits and skeptics, one of Liberia’s revered civil society organizations, CENTAL, is not taking the audit findings kindly, alarming that they are seriously concerning, warranting criminal probes by the authorized public authority such as the LACC.

It seems the first major audit of the first year of the Unity Party administration has ‘caught several hands in the cookies’ jar’—a litany of unaccountable monies and questionable transactions from the single-most important fiscal depository of Government known as the Consolidated Account.

The GAC revelations have triggered wild exchanges between public commentators and opposition politicians on the one hand and the incumbent government and its supporters on the hand.

Now here comes an independent voice, the voice of the civil society organization, Center for Transparency and Accountability in Liberia (CENTAL), calling on investigative and integrity bodies such as the Liberia Anti-Corruption Commission (LACC) and the Financial Intelligence Agency (FIA) to probe the audit findings and push the matter to a logical conclusion.

In a statement read at the press conference yesterday, September 10, CENTAL alarmed it was deeply troubled by the audit findings, which show continuous gross weakness in government’s revenue collection and financial management systems and processes.

The organization recalled that a similar audit of the consolidated account financial statement in previous years showed even worrying trends, which indicates that national government is not doing enough to break away from the ugly past in some areas.

“This needs urgent attention,” the civil society group said, many a number of recommendations it believes could improve transparency and accountability around government’s spending, maximize domestic revenue mobilization, and enhance accountability and integrity within the Liberian Judiciary.

Inside the GAC Report

Recently, the GAC published findings of its audit of the Government of Liberia Consolidated Funds Account Financial Statement for the period January 1, to December 31, 2024.

According to section 4 of the amended public financial management act of 2019, the consolidated fund account is where all government revenues from taxes, fees, fines, and other sources are deposited and disbursed, based on budgetary appropriations.

But after its audit of the account, the GAC found a horde of troubling bad accounting. The GAC asserted:

The Liberia Revenue Authority (LRA) did not expand its revenue reporting software (ASYCUDA and LITAS) to rural collectorates, which would ensure greater transparency of tax system and reduce the likelihood of corruption.

There is a gap in efficient revenue generation, which is compounded by the lack of adequate personnel deployed by LRA at rural tax collection centers, a finding validated during one of our engagements with stakeholders in Gbarnga, Bong County.

Over US$2.8 million was disbursed by the Ministry of Finance and Development Planning (MFDP) exceeding what was approved through the national budget. We see this revelation by the audit as very concerning especially so that this administration has been mpreviously accused for disregard of the budget and the Public Financial Management (PFM) Laws by spending off-budget with zero approval from the national legislature.

There is an under disbursement of approved appropriations in the national budget in the tone of US$78,289,600, which affected a total of 106 ministries and agencies.

Eleven State Owned Enterprises (SOEs) assessed to have paid US$ 10,160,233.98 as income tax, but made a payment of US$5,669,672.88 far less than what was required to be paid, thus leading to substantial revenue loss.

CENTAL said the GAC findings leave one to wonder as to whether government’s desire to increase resource mobilization is commensurate with commitments from agents of the government.

It stated: “We cherish our partnership and shared commitment to advancing democratic values and principles in Liberia, especially those related to anti-corruption, rule of law, and inclusive and sustainable economic growth and development.

“Although the gaps in performance remain significant, we applaud the Liberia Anti-Corruption Commission, General Auditing Commission, Financial Intelligence Agency and other public integrity institutions for working under largely difficult circumstances to achieve key results.”

CENTAL is deeply troubled by these audit findings, which show continuous gross weakness in government’s revenue collection and financial management systems and processes. Similar audit of the consolidated account financial statement in previous years showed even worrying trends, which indicates that national government is not doing enough to break away from the ugly past in some areas. This needs urgent attention.

CENTAL Recommendations

Meanwhile, the civil society group has made a couple of recommendations to give meaning and effect of the GAC audit findings. It proffered:

“That the Liberia Anti-Corruption Commission timely and thoroughly investigates off budget spending; under disbursement to health, education and other critical sectors; and other performance and accountability related issues raised by the audit report. The findings and recommendations of the investigation must be published and timely implemented, including holding those implicated in any wrongdoings fully accountable for their actions and inactions.

“We urge the Joint Public Accounts Committee of the Legislature to timely review and conduct inclusive public hearings on findings of audit report on the Consolidated Account. The outcomes of such hearings must be documented and fully implemented by the presidency to hold any wrong doers accountable.

“Citizens must demand the ministry of finance and development planning and other government spending entities to fully comply with the PFM law and other regulations relating to public spending, to properly safeguard and utilize public resources to positively impact the lives of ordinary citizens.

“We urge the Liberia Anti-corruption Commission (LACC) to review key findings of the audit, especially those that reference violations of the Public Financial Management Law (PFM), including allegations of off-budget spending and others.

“The Liberia Revenue Authority should decentralize its revenue collection software to rual ports and revenue collection points to ensure greater transparency and efficiency in domestic resource mobilization.  Also, the Authority should recruit, train. and deploy adequate staff across Liberia, especially in rural areas, to maximize revenue collection.

“We call for on the General Auditing Commission and Civil Service Agency to engage with the leadership of the Judiciary to timely conduct financial, credential and other audits of the Judiciary so that existing corruption and other related issues can be identified and addressed, as an integral part of the country’s broad anti-corruption and good governance agenda.”