Capitol Hill, Monrovia Liberia – February 12, 2019: An investigation conducted by the West African Journal Magazine reveals that, in violation of the Liberian Constitution, the Executive branch of the Liberian Government has failed to provide expenditure reports to the National Legislature since the inauguration a year ago of the George M. Weah Administration.
The specific Constitutional provision Article 34 states that “…(ii) no monies shall be drawn from the treasure except in consequence of appropriations made by legislative enactment and upon warrant of the President; and no coin shall be minted or national currency issued except by the expressed authority of the Legislature. An annual statement and account of the expenditure of all public monies shall be submitted by the office of the President to the Legislature and published once a year…”
Members of Liberia’s Legislature are failing in their Constitutional duty and oversight to hold the President accountable for provision of the reports which are due quarterly. Four expenditure Reports are now delinquent.
Earlier this month and in open protest, a lawmaker from the southeast administrative district of River Gee County Francis Dopoh II, staged, a “walk out” of legislative plenary session at the Capitol. He later fired off a letter to the House Speaker in which he charged that “…the importance of these financial reports are intended to give this Honorable House an understanding of the performances of various budget lines and to help us guide the direction of the government’s fiscal stance…”
Excerpt of CBL 2018 Revenue Publication
The Liberian Ministry of Finance and Development Planning oversees the budget preparation, execution and reporting processes, in close collaboration with the National Legislature; but has failed along with other government agencies to report to the President and National Legislature for over a year.
Meantime, an inside source at the Liberia Revenue Authority (LRA), has disclosed that revenue collected over the final quarter of 2018 is still unaccounted for on the books of the country’s central bank.
Last August, the LRA announced that it actually collected USD $41.48 million, well above the USD $33.7 million which it says it targeted for collection. All revenue collected were within Liberia.
The source who is intimately knowledgeable about the non-reporting of millions of USD revenue still do not show as “inflow” or “deposit” from the LRA and no credible system exist at the Central Bank of Liberia (CBL) to transparently account for monies received. The Liberian Financial Statistics bulletin published by the CBL for Sept-October, 2018 reveals Revenue and Non-Tax Revenue sources for the Government for the period between July – October showed a total of an estimated USD $24.4 million.
There is no reporting for the period between October – December, 2018 nor any record of the $$41.48 million reported as revenue collected by the LRA.
The LRA says its mission is to “ professionally, fairly, transparently and effectively collect lawful revenues; facilitate legitimate trade and social protection for the people of Liberia.
CPA Aaron Wleh
A Liberian Certified Public Accountant (CPA) Mr. Aaron Wleh, based in Massachusetts the U.S., when contacted, questioned the accounting and bookkeeping regime of Liberia’s Central Bank. “This is not an accounting error. The monies are either at the bank or missing and squandered and must be accounted for And I don’t see where the Bank believes it has an obligation to accurately report on its books,” Mr. Wleh noted.
A Liberian Management scientist Dr. A. Joel King based in New Jersey, U.S. recommended that the CBL initiate a system to report monthly on its revenue sources, balance sheet and statement of cash. “An accurate system of reporting that meets international best practices is needed at the CBL,’ Dr. King said.
Liberia’s economy is under serious stress and the Government has come under heavy criticisms by citizens and international partners for lack of transparency in the management of resources and pervasive graft.
Most major financial defenses are lacking due to lack of technical capacity and infrastructure which are hampering Government’s ability to improve its financial governance system.
By Our Economic Reporter
West African Journal Magazine