Liberia: Gov’t Exceeds FY 2024 Budget Restrict Regardless of LACC Warning

Monrovia – A FrontPage Africa evaluation of the FY 2025 permitted price range has uncovered important off-budget spending throughout a number of authorities entities, together with the fifty fifth National Legislature, the Ministry of State for Presidential Affairs, and the Office of the Vice President, which all exceeded their permitted allocations for FY 2024.

By Gerald C. Koinyeneh, [email protected]

A assessment of the FY 2025 price range paperwork by FrontPage Africa signifies that off-budget expenditures totaling US$13,303,772 occurred after the approval of the FY 2024 recast price range, that means these funds weren’t initially accounted for within the authentic spending framework. While some off-budget spending from January to August 2024 was later integrated into the recast price range in September, extra expenditures after the recast stay a evident monetary irregularity.

Entities with Significant Off-Budget Spending

Among the federal government entities scrutinized, the National Legislature recorded off-budget spending of US$4.07 million, regardless of an permitted price range of US$59.8 million. Similarly, the Ministry of State for Presidential Affairs exceeded its allocation by US$317,080, whereas the Office of the Vice President recorded an overrun of US$67,682.

Entity                          Entity Budgeted Amount (USD)                    Amount Overspent (USD)

National Legislature:                           59,805,145.00                                     4,071,991.00

National safety Agency:                 11,850,241.00                                     1,515,391.00

Ministry of Finance:                           140,967,648.00                                   1,385,868.00

Paynesville City Corporation:            830,318.00                                          1,036,558.00

Ministry of Justice:                             41,432,064.00                                     1,002,126.00

West African Examination Council: 4,075,624.00                                       607,125.00

Governance Commission:                   1,785,683.00                                       484,021.00

Ministry of Mines and Energy:           3,358,702.00                                       372,756.00

Ministry of State for Prexy Affairs    12,495,025.00                                     317,080.00

Ministry of Labor                               1,486,198.00                                       300,958.00

PPCC                                                  1,245,095.00                                       284,374.00

Ministry of Transport                         3,095,719.00                                       283,595.00

Ministry of Youth and Sports             5,791,796.00                                       278,413.00

University of Liberia                          33,481,284.00                                     270,056.00

Central Agriculture Research Institute 1,334,652.00                                                 239,530.00

Civil Service Agency                          13,897,683.00                                     180,310.00

Center for National Document and Archives 715,707.00                              170,969.00

General Auditing Commission                       5,755,053.00                           153,582.00

Financial Intelligence Agency                        1,151,639.00                           69,801.00

Office of the Vice President                           3,714,121.00                           67,682.00

Ministry of Gender                                         2,306,935.00                           57,768.00

Board of Tax Appeals                                     393,758.00                              38,300.00

Environmental Protection Services                1,894,466.00                           24,061.00

National Commission on Disabilities             280,911.00                              18,251.00

General Services Agency                               1,586,026.00                           17,530.00

National Aids Commission                             583,707.00                              17,222.00

Agriculture and Industrial Training Bureau   166,720.00                              12,734.00

Liberia Medical and Health Product Reg. Authority 1,394,433.00               10,979.00

Rural Renewable Energy Agency                  460,841.00                              9,292.00

National Lottery Authority                             230,489.00                              5,449.00

Recurring Off-Budget Expenditures Raise Red Flags

This is just not the primary occasion of off-budget spending beneath the Unity Party-led authorities. In September 2024, the Ministry of Finance submitted a breakdown of off-budget expenditures totaling US$15,631,813, protecting bills incurred between January and August 2024. The report revealed a number of important and controversial spending choices, together with US$2,307,609 on unexplained miscellaneous bills, US$2.5 million allotted to covert operations by way of the National Security Agency (NSA), US$1.5 million utilized by the House of Representatives for a particular sitting and US$812,612 spent by the Senate for a similar function.

These questionable expenditures persist regardless of warnings from the Liberia Anti-Corruption Commission (LACC), which had pledged to research them.

LACC’s Unfulfilled Pledge to Investigate

In a press release issued in September 2024, LACC Executive Chairperson Cllr. Alexandra Zoe expressed considerations over these monetary irregularities and vowed to launch a radical investigation.

“We take these allegations seriously, as they touch on matters that are core to our institutional objectives. Off-budget expenditures, if confirmed, can undermine public trust in governance, weaken fiscal discipline, and pose risks to the country’s financial integrity,” Zoe acknowledged.

Off-budget expenditures, if confirmed, can undermine public belief in governance, weaken fiscal self-discipline, and pose dangers to the nation’s monetary integrity. We want to guarantee the general public that the LACC has commenced a preliminary assessment of the allegations. This can be adopted by a complete investigation to find out the accuracy of the claims, set up accountability, and be sure that correct authorized procedures are adopted.” – Cllr. Alexandra Zoe Executive Chairperson, Liberia Anti-Corruption Commission

The LACC promised to conduct a complete probe to find out the accuracy of the claims, set up accountability, and advocate authorized actions if wrongdoing was discovered. However, because the preliminary assertion, no updates or findings from the investigation have been made public, elevating considerations over the Commission’s dedication to transparency and accountability.

Legislators and Civil Society Demand Accountability

Off-budget spending has drawn criticism from each lawmakers and civil society organizations.

During the September 2024 price range recast, Speaker J. Fonati Koffa known as for sweeping reforms to Liberia’s Public Financial Management (PFM) Law, arguing that the fifty fifth Legislature inherited a deeply flawed price range course of that required pressing restructuring.

“While we support this recast, we must commit to the Ways, Means, and Finance Committee that before submitting the next budget, we will open up the process further. We need to redefine how the budget is received, transmitted, and executed, ensuring accountability from the executive branch. Violations noted in this budget recast cannot be accepted. Off-budget spending without adherence to governing laws is illegal and unacceptable,” Koffa asserted.

He additional argued that the PFM legislation should be amended, as the present framework grants extreme energy to the Minister of Finance, undermining legislative oversight.

Rep. Musa Hassan Bility (District #7, Nimba County) was much more outspoken, describing the price range course of as a “fraudulent scheme” riddled with corruption and cash laundering. Writing on Facebook, Bility denounced the recast price range as “an instrument of fraud and money laundering” and vowed to withstand its passage “by any means necessary.”

CENTAL Urges President Boakai to Take Action

The Center for Transparency and Accountability in Liberia (CENTAL) additionally raised alarms over the rising pattern of off-budget spending. At a press convention on October 3, 2024, CENTAL’s Program Manager, Atty. Gerald D. Yeakula, warned that the administration’s failure to deal with these points was eroding public belief and undermining Liberia’s progress on transparency and accountability.

Yeakula cited a number of controversies, together with the US$150,000 automobile buy scandal involving then-Minister of Commerce Amin Modad, the US$15 million in off-budget expenditures by the Ministry of Finance and Development Planning (MFDP) and widespread violations of asset declaration legal guidelines by public officers.

Call for a Thorough Investigation

Although the Ministry of Finance has claimed that the US$13.3 million in post-recast off-budget spending was correctly accounted for, considerations persist over the continued pattern of price range recasts and monetary mismanagement.

Given the historical past of unaddressed allegations, civil society teams and a few legislators are demanding an unbiased investigation to find out whether or not corruption is concerned. If discovered culpable, these accountable needs to be held accountable to revive fiscal self-discipline and public belief in authorities spending.