Monrovia: Liberia’s Auditor General has flagged more than US$2.8 million in government spending that lacks any supporting documentation, sparking a political firestorm over transparency in the country’s fragile public finances.
In its latest review of the Consolidated Fund for fiscal year 2024, the General Auditing Commission (GAC) said payments totaling US$2.85 million were made without invoices, contracts, or expenditure reports. Under Liberia’s public financial management law, such omissions render the disbursements irregular and raise the risk of fraud.
The auditors also identified US$2.81 million in excess expenditures across key ministries and agencies—including Public Works, the Liberia Airport Authority, the Ministry of Labor, and the Bureau of Concessions—spent beyond the amounts approved in the national budget, without evidence of legislative authorization.
“These actions contravene established budgetary rules and could result in the misapplication of public funds,” the management letter warns.
Government pushback
The Ministry of Finance and Development Planning (MFDP) dismissed claims of “missing money,” insisting the US$2.8 million figure reflects an “archiving and retrieval challenge” rather than theft. Officials argue that the transactions are part of a spending program exceeding US$700 million in 2024, and that supporting paperwork will be located and validated.
But independent analysts note the distinction is critical: under international standards, unsupported payments remain invalid until proven otherwise. “Without proper vouchers, these transactions are not just incomplete—they are irregular,” said one financial analyst in Monrovia.
Transparency concerns deepen
The audit further highlighted a US$2.97 million prior-period adjustment recorded to opening cash balances with no disclosure of the nature of the error, a direct breach of international public-sector accounting standards.
Auditors also flagged material variances between the government’s Integrated Financial Management Information System (IFMIS) and the published financial statements, as well as weak reconciliation of revenue “sweeps” from commercial banks into the central treasury account.
Vendor shares deducted from revenue collections, amounting to US$9.2 million in 2024; were poorly tracked, raising fears that leakages could be larger than disclosed.
Fallout
The revelations come as Liberia seeks to reassure donors and investors of its commitment to fiscal discipline amid slowing growth and persistent budget shortfalls.
“Even if documentation eventually surfaces for the US$2.85 million, the budget overruns and undisclosed adjustments remain unaddressed,” said a former Finance Ministry official, warning that the audit findings could undermine confidence in the country’s financial governance.
Civil society groups have called on the government to publish all missing vouchers, seek legislative approval for excess spending, and disclose the basis of the US$2.97 million adjustment.
For now, the question hangs: was the US$2.8 million simply misplaced paperwork; or a symptom of deeper fiscal indiscipline in Africa’s oldest republic?
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