LPP Requests NASSCORP’s Audited Financial Statements -Says Access to Information Ensures Transparency, Public Trust

MONROVIA – One of Liberia’s oldest political parties, the Liberia People’s Party (LPP), has written the management of the National Social Security & Welfare Corporation (NASSCORP) seeking access to financial statements of the agency.

In a November 1, 2024-dated communication addressed to the head of NASSCORP, Mr. Dewitt Von Ballmoons, the LPP made a request for access to the audited financial statements from 2015 to 2023, justifying its reliance for the request on Section 2.5 of the Freedom of Information Act, approved on September 16, 2010, which supports transparency and accountability in governmental operations.

The LPP said access to this information will contribute positively to informed discussions and enhance public trust in Liberia’s institutions.

The party said it was keen to engage in a constructive dialogue about several business transactions undertaken by NASSCORP.

The LPP said it was particularly seeking clarification and insights into NASSCORP’s Pension Fund Transfer, specifically the transfer of USD 85,000 from the pension fund to the national government during President Boakai’s administration.

“It would be helpful to understand the rationale behind this transfer and its intended impact,” the party told Dewitt Von Ballmoons in the communication, and also called attention to what it called “Rate of Return on Assets.”

With a 2% rate of return on NASSCORP’s total assets, the public is interested in exploring whether this rate will sufficiently generate the necessary funds to meet the benefits plan, which requires USD 3.5 million in revenue against total investments of USD 141 million as detailed on page 4 of the audit report, the LPP stated.

Regarding concerns on Real Estate Investment and Rent Payments, the LPP revealed that NASSCORP invested USD 14 million in real estate located at ELWA and Tubman Boulevard, Paynesville, leased to the Liberia Revenue Authority, a government agency.

However, it appears there have been no rental payments for the past two years, the party pointed out, adding that insight into how this situation would be addressed and would be valuable in reference to page 32 of the audited report.

The oldest Liberian political party also drew attention of NASSCORP’s Receivables and Prepayments, stating: “It is noted that NASSCORP recorded USD 23 million as ‘Receivable and Prepayment,” representing 20% of its total investment. This prompts an interest in understanding the lack of recorded interest income associated with this amount” as indicated on page 23 of the audit document.

The LPP further referenced Headquarters Investment of NASSCORP in the tune of USD 14 million in the property used as its headquarters accounts for 10% of the total investment.

Considering the significance of this asset to NASSCORP, the party said it needed further clarification about its financial implications, as it would be insightful relative details on page 29 of the audit report.

On NASSCORP’s ‘Medical Diagnostic Center Investment,’ the LPP contends that the investment of USD 13 million in the Medical Diagnostic Center, also referred to as Jamale, has prompted questions regarding the absence of reported income from this venture.

“An exploration into the reasons behind this and potential future earnings would be beneficial (see page 29,” it said, expressing optimism “that NASSCORP’s audited financial statements will provide insight into the rationale behind management’s decision to invest a notable 45% of its cash in real estate.”

“As noted in the literature, real estate can offer predictable cash flow, although its limited transparency often raises concerns about potential corruption,” the LPP further said. “Additionally, real estate assets can pose challenges when it comes to converting them into liquid assets. This raises questions, such as whether NASSCORP can attract buyers for the property located at the ELWA junction.”

Asserted the LPP: “Looking at the broader landscape, several African countries have established guidelines regarding the percentage of funds allocated to private portfolios, including real estate. Literature suggests that investment in private equity can vary widely, typically ranging from 2.5% to 10%.

“While Ghana has not specified a particular percentage, Botswana has authorized a 2.5% investment in private equity and pension funds, and Kenya allows for a 10% investment in private equity, including real estate. According to Figure #2 on page #4 of this report, Ghana, along with other nations, has allocated 10% of its investments to stocks and 74% to bills and bonds. In comparison, Jamaican pension funds have invested 40% in stocks and 54% in bonds, while Namibia has dedicated 55% to equity and 40% to bonds. The report indicates that, in 2020, pension funds worldwide invested an impressive 74% in stocks and bonds.”

The communication to NASSCORP, signed by Chairman J. Yanqui Zaza, disclosed that data emphasizes the importance of strategic investment decisions and highlights the diverse approaches taken by different countries in managing their funds effectively.

“By considering these trends, NASSCORP may be able to refine its investment strategy for optimal results,” said the letter.

Thank you for considering our request.