Monrovia—The General Auditing Commission (GAC) has completed and submitted a detailed system review of the Ministry of State for Presidential Affairs (MOS) to the National Legislature, covering the period up to March 31, 2024.
The report assesses the financial management systems under the leadership of Nathaniel Farlo McGill (January 2018 to August 2021), G. Wesseh Blamo (August 2021 to January 2024), and Sylvester M. Grigsby (January 2024 to present).
Purpose and Scope of the Review
The review aimed to evaluate whether the Ministry’s financial management systems and processes align with legislative decisions, laws, policies, and established codes. The GAC provided a limited assurance engagement to assess these systems and offer recommendations for improvements, promoting prudent financial management practices within the Ministry.
Key Findings
The GAC’s review identified significant issues in various areas, including governance, budget management, financial reporting, personnel management, procurement, inventory, fixed assets, and information technology management. These issues were categorized as follows:
Supplementary Payroll Management
The GAC found no policy governing the hiring and management of supplementary personnel. The Civil Service Agency (CSA) was unaware of a supplementary payroll comprising 739 individuals, with an annual salary of $2,622,060, exceeding regular staff salaries by more than 50%.
There was no evidence of budgeting and reporting these salaries, with funds redirected from other budget lines, including consultancy, without proper authorization from the Deputy Minister of Budget and the CSA.
No approved salary structure existed for these personnel, and there was no documentation of competitive recruitment or performance evaluations.
The GAC noted duplicated National Identification (NID) numbers among some personnel, raising concerns about identity verification.
Cash Management
The GAC reported that bank accounts were opened at the Central Bank of Liberia (CBL) without the required approval, potentially facilitating unauthorized transactions.
Four undisclosed accounts at the Liberia Bank for Development and Investment (LBDI), holding $38,835.95 and L$55,145.72, were found, including a “JULY 26 Celebrations Escrow Account” with suspicious transactions totaling $878,295.34.
Personnel Management
The Ministry lacked complete personnel records, including application letters, employment contracts, qualifications, job descriptions, and security clearances. This deficiency affected numerous employees.
Five employees beyond the retirement age were still on the payroll without evidence of retirement arrangements.
Presidential Projects Management
The GAC identified irregularities in the management of several parks constructed by the Presidential Special Project Department/Section. There was no policy or procedure for managing these parks.
The parks were outsourced to Green Park Management Incorporated (GPM Inc.) by the Monrovia City Corporation (MCC) without a competitive bidding process or evidence of expertise in park management. The agreement lacked provisions for fee regulation, capital recovery, and revenue sharing, potentially affecting the financial sustainability of the parks.
Meanwhile, the GAC concluded that the Ministry’s financial management systems did not comply with key regulations, including the Revenue Code of Liberia Act of 2011, Public Financial Management Act 2009 (Amended 2019), Public Procurement and Concessions Act of 2005 (Amended 2010), Civil Service Standing Order, and Decent Work Act of 2015.
