Monrovia – In a rather rare but bold move, President Ellen Johnson-Sirleaf is poised to recall the 2016/2017 draft budget this week, just a week after convening a Cabinet meeting during which she threatened punitive action against any member of the executive involved in budget manipulation, FrontPageAfrica has learned.
Report by Rodney D. Sieh, [email protected]
Massive Shakeup Looms At Finance Ministry
Multiple sources have confirmed to FPA that the President is on the verge of recalling the budget she submitted to the House of Representatives on June 2, 2016.
According to one source close to the Executive Mansion, the President has been contemplating this move ever since cabinet issued a warning to its members about budget manipulations.
The source explained: “As the administration comes to an end the President is keen for the budget to reflect more of her priorities, including energy, roads and other critical infrastructure.”
“With a not too rosy economic outlook the President wants to tighten the budget and do more from the executive end to prevent unrealistic revenue forecast leading to inflated expenditures which may not be in the national interest.”
FrontPageAfrica has also learned that the President has asked Mr. James Kollie, Deputy Minister of Finance for Administration to resign.
The President, it can be recalled, on July 31, 2016, accepted the resignation of the Comptroller and Accountant General of the Republic of Liberia, Mr. Sekou A. Sanoe and appointed Mr. Hanson Kaizulu as Acting Comptroller and Accountant General with immediate effect.
During last week’s Cabinet meeting, ministers expressed concern about budget manipulation and warned members that anyone found in breach would be punished.
The Cabinet mandated that punitive action awaits any line Minister who engages in budget manipulation process while being subject to the vetoing of the specific unauthorized appropriation, which runs contrary to the draft budget originally submitted to the National Legislature.
It is unclear whether the resignation of Mr. Kollie and Mr. Sanoe are related to that action.
The Draft National Budget for 2016/2017 of US$555.9 million, comprises US$495.5 million for Core Domestic Revenue; US$30.2 million as Grant; and US$30.1 million as Contingent Domestic Revenue.
Prior to the President submitting the budget, the Cabinet, approved the Draft National Budget of over US$600-million, representing Domestic Revenue of more than US$400-million, Grants/Budget Support of more than US$66-million, Borrowing of over US$58-million, and a surplus from last year’s budget of over US$13-million.
The Cabinet also agreed on key areas of expenditure to include debt repayment amounting to US$32.5-million, payment of salaries across the Government US$252.1-million and, Social Development Fund and other pass through US$23.2-million.
Key areas of expenditure will also include, Health Sector Strengthening US$73.0-million, Education Sector Support US$79.4-million and, Security and Rule of Law US$90.1-million, including US$15-million for UNMIL Transition, as First Claims on the resource envelop.
Others include the Government of Liberia’s (GoL) contribution (Counterpart Funding) to ongoing donor financed public investment projects through loans and grants amounts to US$24.5-million, and GoL’s Grants and Transfers to various institutions and entities that contribute to Liberia’s socio-economic reconstruction US$85.7-million.
In support of major Public Sector Investments, intended to advance Liberia’s post-Ebola recovery, growth, and development, the Cabinet agreed to fund road construction and maintenance at the cost of US$44.3-million, including US$17.3-million as GoL’s contribution to donor funded projects.
The Cabinet also agreed to fund renovation of public buildings at the cost of US$9-million, expansion of electricity at US$2.4-million, district development projects throughout the country (through the National Legislature) at US$10.9-million, and water & sanitation US$2.3-million.
Beach & waterways cleaning at US$1-million, human capacity-building US$2-million, private sector development US$1.5-million, National Low Cost Housing project (US$1.5 million, and LWSC Water Project US$1.0-million were other key areas the Cabinet also agreed on at its weekend’s meeting.
Other key areas considered in the draft budget by the Cabinet include renovation works at BWI US$1-million, renovation works at Tubman University (US$1-million, and a host of other key interventions critical for the delivery of social services and economic transformation.
In recent weeks, Sirleaf and her Cabinet have been keen on reviewing the status updates on key benchmarks in the areas of roads, ports, water & sanitation, education as well as Task Force performance covering agriculture and agro-processing and manufacturing and business support.
The Cabinet last week, took note of the status updates on roads, ports, water & sanitation, education and related Task Force performance projects and mandated proper and effective coordination initiatives that will translate into realizable outcomes for the benefit of the nation and its people.
The Cabinet also received update on the Draft National Fisheries and Aquaculture Act, which seeks to provide sustainable development of fisheries resources and the proper management and control of fisheries for present and future generations.
The fisheries sector will effectively contribute to economic growth and development -12% to agriculture GDP; 3% to National GDP; 65% to protein intake, and has the potential for employment as well as investment and revenue.
The looming budget recall comes amid a serious push by President Sirleaf to beef up deliverables accomplished on the watch of the administration
In recent weeks, both the Executive and Legislative branches of government have been at loggerheads prompting some to suggest that the looming recall could be tie to reports of friction between embattled speaker Alex Tyler and President Sirleaf.
Pressed as to whether or not this recall has anything to do with the fight over the Speaker, one member of the Executive said: “No! While the ongoing drama at the House is of keen interest to us, we follow it through the news like the regular public and have no involvement and do not intend to get involve.”
The President retreated to her farm in Bomi County late Thursday night which indicates a major decision is about to be made.
It is likely that members of her team close to this budget recall may be trekking to Bomi as well. When reached for confirmation Information Minister Eugene Nagbe said” “The President is having a cookout with villagers who helped with her farm work this weekend and is preparing for that.”
The Minister did not confirm nor deny the budget recall.