MONROVIA — Ahead of the presentation of the National Budget for Fiscal Year 2025 to the National Legislature, the Chairman of the Senate Committee on Revenue, Senator Gbenzohngar Findley, has vowed to ensure that State Owned Enterprises (SOEs) submit the expenditure component of their budget to the Legislature to prevent the questionable spending of funds being generated by them.
By Obediah Johnson, [email protected]
The Grand Bassa Senator observed that the expenditure components of the budgets of SOEs are determined by their respective Boards, making it impossible for members of the first branch of the Liberian government (the National Legislature) to thoroughly scrutiny the appropriations of huge spendings, including the purchasing of luxurious vehicles to be used by heads of those various SOEs and others.
Senator Findley gave the assurance in an exclusive interview with FrontPage Africa at his Capitol Building office in Monrovia recently.
He maintained that those heading SOEs are not running their private companies and as such, they must be answerable to the Liberian people.
Senator Findley emphasized that though every government has its own developmental program or policy on how to proceed, the support of SOEs to the ARREST agenda of President Joseph Nyuma Boakai remains critical towards supporting the national budget.
“What we want to do on the legislative side of this coming budget is to make sure that we receive the budgets of those State Owned Enterprises (SOEs). They are owned by the people of Liberia and they must answer to the people of Liberia on their spendings. not only their cars, but spendings to see whether it’s in line with the agenda of the government..”
“What we have to say to them now is enough is enough; these are not their private companies. The Boards should understand that they don’t own these entities. These entities are owned by the people of Liberia and the resources these entities are making should be appropriated by the people of Liberia.”
He observed that there are some agencies of the government, especially SOEs that are performing well in terms of revenue generation, but they are not remitting their dividends to support the government’s revenue.
“There are some agencies that are performing well simply because they have all of what they need; there are some who are basically performing well, getting resources and generating enough revenue and they can make contributions to the budget.”
He stressed the “appropriation powers” of the National Legislature would be used during this budgeting period to ensure that Boards of SOEs do not set aside exorbitant funds to support their respective plans to the detriment of the country and its citizens.
US$45,000 vehicle policy
Senator Findley disclosed that for decades now past and present the Governments of Liberia (GOL) have set aside the amount of US$45,000 for public officials, including Representatives and Senators.
He said this policy prevents public officials, including members of the executive and Judges from using taxpayers’ monies to purchase a car above the US$45,000 threshold.
“There’s no reason for Managing Directors or Deputy Managing Directors of State-Owned Enterprises (SOEs) to vehicles more than US$45,000. Sooner or later we will be looking at laws that require SOEs to bring their budget to the Legislature for passage.”
Senator Findley, however, rejected calls from some civil society actors for monies allotted for the purchase of vehicles for lawmakers and others to be either slashed or removed from the national budget.
He justified that officers of the Liberia National Police (LNP) would need long lasting vehicles to travel to the leeward areas to execute their assigned tasks and responsibilities.
He added that the same goes for members of the National Legislature who regularly travelled long distances to hold engagements with their respective constituents.
“Those of us who have to go in the interior, it’s a challenge. A US$20,000 car will not make it or survive. The vehicle issue should be based on the terrain they will have to operate under.”
Senator Findley said it is now time to say “enough is enough” to unjustified spending by heads of SOEs operating in the country.
Extra spending
He noted that in the wake of challenges, the Boards of many SOEs are setting up huge expenditure budgets by getting involved in humanitarian and community workings.
He maintained that these revenue generating entities unjustifiably engaged in supporting community and other initiatives from their respective budgets even though many of those programs and initiatives are already being supported by the government.
Senator Findley clarified that though the move is not a bad idea, SOEs should concentrate on generating the needed revenue and remitting to government’s coffers to address the most pressing challenges.
He observed that the government is already struggling to find resources to “grow the budget” and as such, it must be fully supported by its revenue generating entities or SOEs.
“I am not saying they shouldn’t help the communities; SOEs also have responsibility to the communities; I am saying that the level in which they are making contributions is not being prudent but excessive and, in some cases, may not even be enough. But unless we see their budgets, we can’t speak to that.”
