Monrovia – The General Auditing Commission audit report of the Liberia Free Zone Authority (LIFZA) for the periods July 1, 2008 to December 31, 2015 has recommended to the National Legislature the dissolution of the skeleton team established to protect the assets of LIZFA until Government can determine its status and to repeal the Act which created the Liberia Free Zone Authority “as its continuous operation is a waste of public resources”.
Due to the Liberian civil war, LIFZA became inactive; therefore, the Government of Liberia paid off severance benefits to all the employees and established a skeleton team to help protect the assets of the institution in 2008 until Government can decide the status of the entity.
The Liberia Free Zone Authority complex on Bushrod Island is occupied by the United Nations Military Mission in Liberia (UNMIL).
However, the skeleton team is housed in the basement of the dilapidated building that once housed the National Housing Authority, Waterside, Monrovia.
According to the GAC report, since the establishment of the skeleton team, it has expended US$ 509,864.37 without adherence to the Public Finance Management (PFM) Act of 2009 and the guidelines established by the Civil Service Agency (CSA). This non-compliance, has led “ to unauthorized, irregular, fruitless and waste expenditure” at the LIFZA.
The report also says that “the skeleton team has not provided material evidence that it complied with the guidelines established by the CSA for its operations which included yearly contract for the skeleton staff members, a detailed listing of LIFZA assets and annual performance evaluation report”.
The report further indicated that the Management of skeleton team at LIFZA increased the payroll by LD$10,226,632.00 in violation of the PFM Regulations and Civil Service Agency Director General communication which established the skeleton team.
The GAC further said analysis of the payroll shows budget for salary did not change; however, the staff level dropped from 9 employees to 5, and the excess salary was reallocated to five individuals thus creating overpayment without justification.
Therefore the GAC has concluded that the amount incurred for salary increment is an ineligible expenditure for which Management should be held accountable.
The audit further reported that the Management of LIFZA skeleton team did not provide documentation for expenditure in the amount of US$ 301,262.21 out of a total expenditure of US$ 509,864.37.
Also, the Officer-in-Charge and other staff members received and disbursed petty cash without supporting documents. For the months reviewed, the amounts were in excess of the stipulated petty cash limit.
In addition, the petty cash funds were not used to cover minor expenditure as is the general purpose for petty cash.
Therefore, the GAC has concluded the Management should be held accountable for the amount disbursed without supporting documentation.
A GAC review of 5 sample vouchers selected from the Ministry of Finance Development (MFDP) for transactions of goods and services amounting to US$53,488.00 and L$ 615,580.00 shows that the amounts were expended by LIFZA using the single source procurement method without evidence of approval from the Public Procurement and Concessions Commission.
Therefore, the report indicated that the Management of LIFZA violated the PPC Act of 2005 and 2010 Restated by operating without an approved procurement plan . Therefore, Management should be held accountable for the violation of the PPC Act.
The GAC also submitted the audit report on the Foreign Service Institute (FSI), Ministry of Foreign Affairs for the fiscal years 2012/2013 to 2014/2015 to the National Legislature.
The objective of the FSI Foreign Institute is to furnish training and instruction to applicants for admission to the Service, to Officers and employees of the Service and of the Ministry, and to other officials and employees of Government agencies for whom training and instruction in the field of foreign relations are necessary.
According to the Foreign Service Institute (FSI) Policy issued November 4, 2002, “all students are required to sit for an admission/aptitude test to be administered by the Institute.
All applicants must earn a minimum grade point of 2.7 from a recognized university or college and must have shown scholastic performance evidenced by his/her undergraduate record to be exhibited by an official transcript.
Three letters of recommendations, including one from the Dean of the last school graduated and two from prominent citizens in the Country are required.
Other requirements are security clearance from the National Security Agency and Health certificate from a reputable medical Intuition as well as two recent passport size photos”.
Contrary to this, the GAC observed during the 2012/2013 fiscal years that students gained admissions to the FSI without meeting the minimum requirements for admission per the FSI requirements. The GAC reviewed the records of 37 students and noted the following deviations:
Two students did not complete application forms. Four students did not obtain a minimum 2.7 GPA – pre-condition for admission. Five students had no evidence of transcripts in their files. Eleven students had no letters of recommendation from their deans of last schools attended.
Three students had no letters of recommendations and four students had no National Security clearances and health certificates.
Additionally, during 2013/2014 fiscal year, 39 (thirty nine) records of students reviewed by the GAC noted the followings:
Of the thirty nine (39) students admitted to the institute during the period under audit, there was no evidence that they met the admission/aptitude test requirement. Nine (9) students did not obtain the 2.7 GPA requirements –pre-condition for admission.
Nineteen (19) students had no letter of recommendation from their Deans of last schools attended. Six students had no letters of recommendation from prominent citizens in the country Four (4) students had no National Security clearance and health certificate.
The GAC audit noted that for the fiscal year ended 2012/13, the FSI graduated thirty seven (37) individuals: twelve from the Ministry of Foreign Affairs, seven from other Government Agencies and eighteen from the private sector.
The GAC observed during the audit that private sector enrollees graduating from the program were not being placed/assigned into the Foreign Service.
There was no evidence that the 18 graduates from the private sector were applicants for admission to the Foreign Service at the Ministry of Foreign Affairs at the time of their admission as required by Liberian codes Revised, Vol III: Page 753, Foreign Relations Law section 31 states that:
“In order to furnish training and instruction to applicants for admission to the Service, to Officers and employees of the Service and of the Ministry, and other officials and employees of Government agencies for whom training and instruction in the field of foreign relations are necessary, the Minister shall establish a Foreign Service Institute,” the report concluded.