Monrovia – Liberia’s General Auditing Commission (GAC) has uncovered a series of governance, procurement and project implementation weaknesses in the Smallholder Agriculture Transformation and Agribusiness Revitalization Project (STAR-P), warning that the deficiencies exposed the World Bank and IFAD-supported initiative to weak oversight, poor asset accountability and potential value-for-money risks.
By Gerald C. Koinyeneh, [email protected]
The findings are contained in a Management Letter issued on June 29, 2026, following the audit of STAR-P’s financial statements covering the period ending October 31, 2025.
The audit, addressed to Agriculture Minister J. Alexander Nuetah, identified weaknesses ranging from the absence of a functional audit committee to procurement irregularities, poor asset management, incomplete infrastructure projects and delays in implementing key digital services intended to benefit farmers.
No Functional Audit Committee
The GAC found that the National Project Steering Committee failed to establish an audit committee as required under Liberia’s Public Financial Management (PFM) Act.
Auditors also reported no evidence that the Steering Committee reviewed internal audit reports or monitored the implementation of audit recommendations. According to the report, the committee met only once during the audit period to approve the project’s annual budget and work plan.
The GAC warned that the absence of an audit committee weakens internal oversight and could delay corrective actions on audit findings.
In response, STAR-P management acknowledged the recommendation but said the Ministry of Agriculture has instead established an Audit Recommendation Implementation Committee chaired by the Minister to monitor audit recommendations. The Auditor General, however, maintained that a formal audit committee remains necessary and said implementation would be reviewed during future audits.
Procurement Without Competition
The audit also questioned the procurement process surrounding a US$27,000 consultancy contract awarded to OA & A Consult Limited.
Auditors found no evidence that the consultancy was competitively procured, noting the absence of advertisements, expressions of interest, technical evaluations or financial proposal assessments as required under project procurement rules and World Bank regulations.
The GAC cautioned that bypassing competitive procurement could undermine value for money and increase the risk of procurement fraud.
Management accepted the finding and pledged to ensure future grantees follow competitive procurement procedures consistent with IFAD and World Bank guidelines.
Weak Fixed Asset Controls
The report identified widespread weaknesses in STAR-P’s asset management system.
Among the deficiencies were incomplete fixed asset registers, failure to update newly acquired assets, lack of periodic physical verification, and absence of asset coding.
The audit cited assets valued at US$46,719, including laptops, printers, projectors, office furniture and computers, that were either improperly recorded or omitted from the register.
Although management submitted an updated asset register after the audit, the Auditor General said it still lacked critical information required under public financial management regulations.
Missing and Unverified Beneficiary Assets
Field verification exercises also uncovered concerns regarding assets purchased for beneficiaries under the Liberia Agriculture Commercialization Fund (LACF).
The audit reported that assets worth US$33,500, including cold storage facilities, solar systems, greenhouses and motorcycles, could not be physically verified.
Another US$1,680 solar system procured for a beneficiary had not been put into use, while assets worth US$68,000 supplied to a beneficiary in Grand Bassa County—including trucks, motor tricycles, processing equipment and palm oil machinery—had not been coded for identification.
The GAC concluded that management failed to adequately account for the missing assets or explain why some equipment remained unused.
Management attributed the challenges to decentralized project implementation, incomplete records and logistical difficulties, and said it has begun reconciling assets, strengthening asset tracking and revising its fixed asset management policies.
The Auditor General maintained the findings and called for a joint physical verification exercise with the GAC within one month after submission of the report to the Legislature.
Construction Projects Behind Schedule
The audit further found that US$57,960 had been paid for construction projects that remained incomplete well beyond approved timelines.
The affected projects include a warehouse in Lofa County and a palm oil factory in Grand Bassa County, both of which were still unfinished during GAC’s field verification in May 2026.
Management blamed contractor capacity limitations, adverse weather, rising construction costs and logistical challenges, and said stronger contract monitoring and milestone-based payment systems have since been introduced.
Digital Lending Platform Still Missing
One of the audit’s most significant findings involved an online digital lending platform intended to support farmers through CitiTrust Savings and Loans.
According to the report, US$36,768—representing full payment under the service agreement—was disbursed for the design and implementation of the platform.
However, during physical verification in May 2026, auditors found no evidence that the integrated digital lending system had been deployed or was operational, despite contractual deadlines indicating it should have gone live by May 2025.
Management acknowledged implementation delays, citing software customization requirements, connectivity problems and technical capacity constraints. Officials said the software would be fully integrated before the service agreement expires.
Dashboard and Project Assets Not Handed Over
The GAC also found that the Liberia Agriculture Commercialization Fund’s reporting dashboard and other digital assets were never formally transferred to the Ministry following the expiration of the Fund Manager’s contract.
Auditors warned that the missing dashboard could undermine institutional memory, beneficiary tracking and project reporting.
Management said discussions are underway with the former Fund Manager to complete the handover of databases, user credentials and reporting tools, while committing to strengthen future contractual handover requirements.
Auditor General Maintains Key Findings
While STAR-P management accepted most of the recommendations and outlined corrective measures, the Auditor General maintained several key findings, particularly regarding missing beneficiary assets and incomplete documentation.
The GAC said it will conduct follow-up reviews during subsequent audits to determine whether the Ministry of Agriculture has implemented the recommended reforms aimed at strengthening governance, procurement, financial accountability and project oversight.
