Monrovia – The Manager of the National road Fund says the NRF currently has almost US$12 million dollars in its account, which includes monies remitted by the Liberian government as well as other commitments made by international partners.
Boniface Satu also disclosed that US$3.5 million – as part of the approximately US$12 Million – has been remitted into the NRF escrow account by the Government as matching fund to the Millennium Challenge Compact’s road fund contribution to the country.
But delays in the transfer of funds to the escrow account – a pre-condition captured in the MCC compact for Liberia – have caused the US government to cancel a US$15 million NRF package.
As part of the Compact, Liberia was obligated to achieve11 conditional precedents before the MCC disburses its funding to the NRF.
Amongst several things, the NRF was to set-up its own office and open an escrow account for the remittance of funds collected as a levy on the sale of petroleum.
“We understand it is their policy and we are not meeting that 100% but we have done that 80 to 90%, so they should understand our financial position… the strides this government has made in ensuring that the road fund is functional, operational, transparent – we have been accountable,”, said Boniface Satu, Manager of the NRF.
Satu admitted that the “the only issue that we have was the transferred of the funds into the escrow account” which he added, “government made an effort to transfer the funds”.
He disclosed that for fiscal year 2018/2019, despite the delays due to the stalemate in completing certain procedurals, over US$5 million was transferred to the escrow account.
“Between April and May, we put in almost US$5.6 million dollars based on the amount that was owed but there was still a balance left and we came up with a payment plan and based on that you can even see the flow of payments that government made,” he explained while displaying bank statements from United Bank of Africa and Liberia Bank for Development and Investment indicating the bank balances of the NRF.
“In FY 2019/2020, our record shows that fuel levy collection to date is approximately US$8 million – up till present, our available balance that we have is almost US$12 million dollars.”
He clarified that some of these monies are “committed funds”, which means donors’ commitments to the NRF are also covered and he, at the same time, boasting of support from several other donors including the GIZ or German Development Agency.
“We understand it is their policy and we are not meeting that 100% but we have done that 80 to 90%, so they should understand our financial position… the strides this government has made in ensuring that the road fund is functional, operational, transparent – we have been accountable.”
– Boniface Satu, Manager of the National Road Fund
Responding to the decision of the US government to cancel the US$15 million for road fund, Mr. Satu said the “Liberian government has been making frantic efforts to assure the MCC that the government is following all of its pre-conditions and criteria” that primary includes regular transfer of road funds to the escrow account without hindrance.
“So what the Finance Ministry has done is to send an MOU to the Central Bank suggesting that whenever the monies hit the consolidated account, in one week, that money should move directly into the road fund account.”
Despite the MCC’s decision, Mr. Satu seems pretty optimistic that the US Government will rescind their decision by bringing the US$15 million back on the table if the remittance of money to the NRF escrow account is done consistently without hindrance.
He added that the NRF is “working assiduously to ensure all plans fall in line with the MCC‘s and other donors”, adding that he’s still hopeful that once the NRF abide by all the pre-conditions, the MCC will recommit the US$15 Million.
“What we’re trying to do now is to demonstrate to them [MCC] that the share of our contribution will be put into maintenance work – and then, it will be left with the MCC to come on board and put in their part.”
He said even if the MCC refuses to rescind its decision the NRF will maximize other opportunities offered by development partners like the GIZ, African development Bank, World Bank and the European Union.
An optimistic Satu said the “sustainability plan of around US$5 million” designed by the MCC will further strengthen the NRF; so, he is calling on the MCC to continue several other supports to the NRF even if the US$15 million is not available any longer.
“We still believe the MCC will come on board to work with us – because I think what they are doing is to push the government so that the government can allow the process to work and the fund flows. I still have the confidence that the MCC, sometime down the road before 2021, they will come.”
Editor’s Note: This Story has been updated to correct some mixed-up in the previous version