Liberia: GAC Audit on Ministry of Lands, Mines and Energy Uncovers US$314k Discrepancies

MONROVIA – An Audit report from the General Auditing Agency (GAC) for the Fiscal Year 2012 to June 30th 2016, shows that the Ministry of Lands Mines and Energy could not account for US$314, 135.33 allotments.

According to the report, the Ministry of Lands Mines and Energy failed to provide financial documentation for the transaction made between the years 2012 to 2016 on the transaction for the amount of US$ 314, 135.33.

The audit also uncovered that a difference of US$11,950 between financial statements and notes to financial statements (2012/2013) and difference of $25,774.80 between the ledger and cash receipts and payment for the fiscal year 2015/2016.

The audit report further discovered that the Management of RREA could not confirm a transfer of US$62,068.70 for the Ministry which makes LME liable for the loss for the fiscal year (2013/2014) and that there was excess expenditure on fuel and lubricants amounted to US$111,684.54 as well as excess expenditure on Buchanan Coastal Defense Project amounted to US$6,000.00 between approved procurement plan and the payment by LME.

Audits did on Bank Reconciliation shows that the Management of the Ministry of Lands and Mines presented one reconciliation for each fiscal year which was tested and found to be inaccurate. Reconciliation not signed by the preparer and approved by the reviewer.

Procurement for goods and services amounting to US$102,799.44 did not meet the applicable procurement requirements while Fixed Asset Reconciliation did not include assets assigned code, assignee and location and that the Management provided land deeds for 49.34 acres of land value at US$90,000 in Montserrado and Margibi Counties that have not been registered in the archive.

The Audit report also claimed that two vehicles purchased for the Buchanan Costal Defense project in the amounts of US$70,000.00 were assigned to the Comptroller and Legal Counsel Two staff without evidence of operational relationship to the project.

Under foreign travels, the GAC audit uncovered that an amount of US$82,149.25 without evidence of travel advance retirement and US$129,634.50 paid to some individuals without evidence of meeting the applicable procurement requirement (2015/2016).

Also, the report states that US$10,416 to the Independent Diamond Valuator without documentation No evidence that pre-qualification requirements of diamond counselor Int’l such as professional and technical qualifications and records of past performance before the consultant was hired by LME.

Presenting their report to the Joint Public  Account Committee of the Legislature, the GAC Audit report also claimed that staff of Government Diamond Office recruited as contractors were paid as consultants, including office assistants and messengers and Scholarship for seven staffs who areas of disciplines did not meet the Ministry scholarship guidelines, such as IT, law, business management.

“Regional offices, in Bong, Nimba and Grand Gedeh were not functional. No evidence of Miners Licensed Reports in Leeward Counties for all categories of miners. Several miners operating in Grand Gedeh and Bong with expired licenses, Staff in Nimba, Bong and Grand Gedeh did not maintain attendance records and no audit committee.”