MONROVIA- The General Auditing Commission (GAC) has begun a five-day Financial Auditing Manual training as part of an effort to enhance the skills of auditors in Risk Assessment, Internal Controls Evaluation, and procedure in planning an audit. 

By Francis G. Boayue

The GAC, with funding and facilitation from the African Organization of Supreme Audit Institutions (AFROSAI-E) Secretariat, on Monday, November 11, began a five-day training, expected to end on Friday, November 15, 2024, with an aim to cover various segments of the Financial Auditing Manual (FAM) in line with the International Organization of Supreme Audit Institutions (INTOSAI), including aspects of planning the audit, risk assessment, and internal controls evaluation 

The Auditor General of the Republic of Liberia, Hon. P. Garswa Jackson, speaking at the opening of the training on Monday, emphasized the importance of the Financial Auditing Manual as a comprehensive guide to be used by the General Auditing Commission to perform financial audits in accordance with the International Standards of Supreme Audit Institutions (ISSAls).

“The knowledge, experiences, and perspectives gained from this exercise would be the highest standards and produce more quality audit reports so that our citizens can benefit from greater transparency and accountability in the use of public funds, thereby ultimately improving the lives of our people,” AG Jackson said. 

He said the training is expected to cover various segments of financial audit, including aspects of planning the audit, risk assessment, and internal controls evaluation. These segments, he added, are important because understanding the entity through effective planning, risk assessment, and internal controls evaluation is fundamental to identifying the resources, substantive procedures, and the development of appropriate audit strategies needed for the conduct of a quality financial statement audit.

According to him, other segments of the financial auditing manual including substantive audit procedures and reporting, will be covered in subsequent training. 

“It is important to note that these are periodic capacity building initiatives conducted at the GAC to ensure that our staff are updated with current audit techniques to perform various audits of public sector entities, ensuring quality and comparability with other Supreme Audit Institutions and the relevant standards of the INTOSAl Community,” AG Jackson asserted. 

AG Jackson outlining the importance of the training, said the training is essential because it outlines the principles and standards for auditing the financial statements of government entities, and as well assist in building the capacity of workers of GAC to ensure that all staff are updated with current audit techniques to perform various audits of public sector entities, ensuring quality and comparability with other Supreme Audit Institutions and the relevant standards of the INTOSAl Community. 

He, however, lauded the AFROSAI-E Secretariat and colleagues from SAl Ghana and the Gambia who have come to Liberia to facilitate this very important training.

Capitol Hill, Monrovia – The Legislative Public Accounts Committee has conducted a public hearing into the findings of the General Auditing Commission (GAC) audit of the National Disaster Management Agency (NDMA) for the fiscal period from June 30, 2020 to July 30, 2021. The audit report accuses the agency of several financial irregularities.

The GAC audit reveals numerous issues, including the lack of comparative financial information, misstated opening and closing balances, undisclosed bank accounts, irregularities in bank balance reconciliation, unreconciled salary expenditures, transactions recorded in bank statements but missing from financial records, undisclosed donor assets, non-remittance of Goods and Services Tax (GST), procurement irregularities, and transactions without adequate documentation.

Paragraph 1.4.16 of the Revised Cash Basis IPSAS (2017) mandates that, unless otherwise permitted or required by the standard, comparative information must be disclosed for all numerical data in the financial statements. This applies to all entities, except when the standard is applied for the first time. It also requires that comparative information be included in narrative and descriptive sections when relevant to understanding the current period’s financial statements.

The GAC report highlights that the NDMA management did not disclose prior year information in the Statement of Cash Receipts and Payments, the Statement of Comparison of Actual Amounts and Budget, or the notes to the financial statements, as required by the standards for comparability purposes.

Furthermore, under part 1.3.15 of the Revised Cash Basis IPSAS (2017), all entities must present a Statement of Cash Receipts and Payments, disclosing the beginning and closing cash balances, total cash receipts, total cash payments, and major sub-classifications. This requirement ensures that the financial statements provide comprehensive information about the entity’s cash balances and any changes during the reporting period in an accessible and understandable format.

The audit also found that an amount of US$67.89, recorded as the closing cash balance for the Fiscal Year 2018/2019, was not carried forward as the opening balance for the next Fiscal Year (2019/2020). As a result, no opening cash balance was recorded for the fiscal year 2019/2020.

Additionally, the Auditor General observed that the closing cash balance for the fiscal year ending June 30, 2020, was misstated. The financial statements reported a closing balance of US$1,245.98, but the actual closing cash balance should have been US$5,003.09, resulting in a discrepancy of US$3,757.11.

The audit report further noted that the NDMA failed to disclose an EcoBank account (account number 6100063162) with a balance of US$690.76 as of June 30, 2020. Moreover, there was no evidence that total bank credits amounting to US$3,225 and total bank debits of US$2,534 from the undisclosed account were recorded.

The National Disaster Management Agency (NDMA) was established to implement the National Disaster Management Policy and coordinate the national disaster management system, involving both state and non-state actors at national, county, district, and chiefdom levels. The agency’s primary focus is addressing disaster-related issues to reduce vulnerabilities to both natural and human-induced hazards.

The policy outlines several key objectives, including enhancing national and local capacity to minimize disaster risks, preventing and mitigating the adverse impacts of hazards within the framework of sustainable development, and establishing a functional legal and institutional framework for effective governance.

It also emphasizes capacity building, clear role allocations, and integrating disaster risk reduction into development, recovery, and humanitarian response plans. Ultimately, the policy aims to contribute to national risk management efforts for sustainable development.

Despite its crucial role in disaster response, the NDMA has faced chronic underfunding.

The agency has often been overwhelmed when responding to disasters such as floods and fires due to a lack of resources. Over the years, NDMA authorities have called for increased budgetary and donor support to enhance its response capabilities.

However, the financial irregularities revealed by the General Auditing Commission (GAC) could pose a significant obstacle to securing additional funding. The responsibility now lies with the current management to implement the GAC’s recommendations and take the necessary steps to improve financial management. Doing so will be critical to ensuring the agency can continue to fulfill its mission and strengthen its ability to respond to future disasters.

Monrovia — A compliance audit of the Special Investigation at the Liberia Telecommunications Authority (LTA) conducted by the General Auditing Commission (GAC) has revealed that the LTA failed to remit government revenue and Illegally awarded the headquarters construction contract.

By Selma Lomax, selma.lomax@frontpageafricaonline.com

The compliance audit, for the year January 1, 2023 to December 31, 2023, was conducted in compliance with relevant laws and regulations consistent with the Auditor General’s mandate as provided for in Section 2.1.3 of the GAC Act of 2014 as well as in accordance with other relevant laws.

The audit revealed that LTA Management did not remit Government’s share of cash collections on accrued revenue totaling US$3,859,662.18 for the period January 1, 2023 to December 31, 2023.

“Management continues to pay TIA 49% share of revenue during 2023 rather than the 45% stipulated in the contract for the remaining four years of the contract,” the report revealed.

The report also established that the Auditor General’s report that closing cash balance didn’t reconcile to the Government of Liberia’s unremitted share of revenue collected amounted to US$$2,943,010.33 for the period under audit.

“Management did not ensure that the nine percent (9%) regulatory fee charge on total revenue of Mobile Network Operators (MTN and Orange) is included as part of the revenue sharing for TIA.”

“Management did not open Liberian Dollars transitory bank account at the Unite Bank of Africa Liberia Limited to receive collections paid in Liberian Dollars consistent with the terms of the Memorandum of Understanding.

LTA Headquarters construction contract,” the report revealed.

The following irregularities, the audit report revealed, were associated with the monitoring and evaluation of the LTA

Headquarters construction contract, revealing that there was no evidence of a bidding process initiated for the hiring of a project independent evaluator (headquarters project technical supervisor) even though a communication was submitted by the Ministry of Public Works to LTA providing lists of consultancy service firms for technical supervisors as included in the procurement plan.

The audit also established that there was no evidence of a procurement process conducted nor was there a contract entered into between the subsequently hired private evaluator, Hasan Al-Turabi Samura, and LTA. 

Also, the audit added, there was no evidence of business registration, tax clearance, and ToR for the amount of US$1,000 paid to assess the status of the project for the next milestone payment term (12% US$552,491.76).

“The private evaluator, Hasan Al-Turabi Samura, did not comprehensively catalogued technical details of construction works performed backed by pictorial evidence. However, the report was used as a basis of disbursement of US$903,368.00 made to Building Material Center Group Incorporated for service performed,” the audit report established.

The audit also established that the LTA management made two payments totalling L$169,319,769.20 (approximately US$903,368.00) to BMC Incorporated in excess of the second payment terms in violation of the contract milestone for the 12% payment of the total contract amount. evaluator, Hasan y: Tura i saira, ego te septeme 9, 2023, Fue termore, the two payments exceeded the 12% second payment term in the contract by US$360,876.24.

As per the audit, there was no evidence that the members of the bid evaluation committee had the technical expertise and experience to evaluate a construction project technical proposal.

“There was no evidence that the bid evaluation committee assessed and established the rights and ownership of assets in the bid proposal per the bid evaluation criteria,” the audit established.

Recommendation 

Management should account for the unremitted Government of Liberia (GoL) share of revenue amounting to US$4,035,147.58. Additionally, management must immediately facilitate the deposit of this unremitted amount into the consolidated account.

Moving forward, the GAC recommends that management ensure the timely deposit of the GoL’s share of revenue into the consolidated account. The Revenue Sharing MOU should be revised to incorporate the approved revenue-sharing rates determined by the Legislature at the start of each fiscal year. These approved rates between the TIA, LTA, and GoL should be automatically reflected in the transitory account to ensure the proper distribution of fees as they are remitted.

Management should also conduct periodic reconciliations of revenue-sharing analyses, comparing billed amounts, collected amounts, and payments made to the parties involved. Any discrepancies identified should be investigated and corrected in subsequent disbursements. Evidence of these periodic revenue reconciliations, along with supporting records, should be properly documented and filed for future review.

Management’s Response

In its response, management stated, “We have observed that the auditors understated the total remittances in Liberian Dollars for the GoL’s share of telecommunications revenue. The auditors reported a total of L$546,053,627.39, whereas the actual amount is L$575,223,561.55, resulting in an understatement of L$29,169,934.16.”

According to management, the remittances were paid by the LTA and transferred to the GoL in 2024. The delay in processing was due to the Central Bank of Liberia’s inability to issue Manager’s Checks in a timely manner to support the remittances to the GoL.

The July 2024 Compliance Audit of the Central Bank of Liberia (CBL) by the General Auditing Commission (GAC) is a rehash of classic procedural errors in any large organization but there is no evidence of criminal wrongdoing. We will review the inaccuracies, errors, materiality, and lack thereof in the Compliance Audit, but it is first in order to give a background on the origin of the Report.

By: Samuel P. Jackson, Global Financial Consultant

The Report covers the period from January 1, 2018, through December 31, 2023. According to the GAC, the audit was conducted in line with Section 2.1.3 of the General Auditing Commission (GAC) Act of 2014, without stating the origins of the authority to audit the CBL. That this compliance audit was done strictly in accordance with the legal mandate of the GAC is at first inaccurate and outlandish.

The Audit is in fact a political tool employed by the Boakai Administration in February of this year to find reasons to illegally remove the top management of the Central Bank including the Executive and Deputy governors. See Frontpage Africa of February 26, 2024. Firstly the audit requested by President Boakai did not take into consideration the legal, economic, financial, and managerial autonomy of the Central Bank. The audit surrenders the autonomy of the Central Bank to the Executive Branch of Government.

The Act establishing the GAC specifically empowers the Agency to conduct audits of public accounts and funds of the Republic of Liberia. However, central banks all over the world enjoy an autonomy to keep their functions from being influenced by bad actors including those in the executive branch of government. A central bank must be run without corrupting influences from the executive so as to protect the integrity of a country’s monetary sector. As a result, most experts view the audit as an intrusion into the functions of the Central Bank by the Executive with clear political motives. Today, that intrusion has come full circle with an announcement that the President of Liberia suspended the Executive Governor of the Central Bank and named an acting Executive Governor, Mr. Henry F. Saamoi, former CEO of the International Bank (IB).  We will delve into the intricacies surrounding the appointment later in this piece, but for now we will concentrate firstly on the legality of the audits and the findings and recommendations.

Firstly the Executive Branch of Government itself is not clothe with the authority to determine the timing, scope, and types of audits to be conducted. Secondly, the Compliance Audit Report is addressed to the Pro-Temp of the Liberian Senate and the Speaker of the House. The GAC is an autonomous agency whose independence was breached by the order of President Boakai to audit the CBL. Clearly the audit has a political motive and subsequent events have proved that to be true. Moreover the CBL is outside of the definition of public funds, which include taxes, user fees, dividends, royalties, grants, etc. Thus in addition to the timing, scope, and infringement on the autonomy of two government agencies, the Executive has laid bare its plans to use a political tool to effect changes at the Central Bank, an autonomous agency whose strategic positioning in the economy is to protect the value of our currency.

Howbeit, the compliance audit is completed, and its findings and recommendations released and, in some cases, leaked to media outlets to sensationalize the outcomes so as to turn public opinion against officials of the CBL. A diabolical scheme to sully the reputation of the bank’s top management including its Non-Executive Board, Executive Governor, and Deputies. The CBL is a custodian of public funds but does not spend those funds without request by the appropriate government ministry and agency. Disbursement lies within the purview of the Executive. The CBL does not decide who to pay and what amount. It only executes order. The bank has its own operational accounts with clear guidelines, traditions, and the financial culture to protect the independence and maintain prudential guidelines. In the massive 220 plus page compliance audit, the CBL was not caught in any financial impropriety bordering on embezzlement or misapplication of funds in its custody.

The 220 plus page compliance audit is too voluminous to conduct a comprehensive analysis in this space but let us look at the key findings and recommendations. The audit charges budget irregularities, spending outside of the budget, meaning variance or a purported effort to spend monies it was not authorized to. No such misapplication was reported in the report and all funds were fully accounted for, with the only issue being overspending on budget line items. Overspending on budget line item is not a criminal activity, but a procedural error or in most causes  due to extraordinary circumstances. And in Management response to the issue of budget irregularities, the CBL stated that the auditors compared the budget which is cash based to the financial statements which are based upon accrual, and thus the main reason for the variances. Thus this invalidates the auditors’ findings.

The Audit report found encashment of checks over the counter made out to institutions and corporate entities. While the finding is legitimate, Management also had a solid response. CBL ended the practice of encashing corporate and institutional checks over the counter in 2019. In the main time the audit did not trace payees to determine if the names on the checks were the appropriate responsible persons in charge of financial matters for the institutions.

The audit mentioned loans and overdrafts made to the Government of Liberia without legislative approval. While the practice is irregular, but the intent was to pay civil servants’ salaries in a contentious election year, where public peace was guaranteed by the payments and thus the extenuating circumstances should excuse the procedural error. No funds were misapplied or stolen. Management cited the low collection of government revenues during the periods under review and indicated that national security concerns in an election year necessitated the overdrafts. Salaries were paid. No funds were diverted or misapplied. Further the management of the bank worked with the Ministry of Finance and Development Planning to ensure compliance by creating loan documents to reflect the payments. These transactions predated the Extended Credit Facility Program from the International Monetary Fund. Loan documents are available for auditors to review.

The audit made mention of non-performing commercial bank loans in the amount of 412 million United States dollars. This was a huge mistake on the part of the auditors. It cited amounts in US dollars that should have been in Liberian dollars, thus there was a gross overstatement of the actual amount they claimed to be non-performing loans. An investigation by the author into the actual amounts by engaging current and former senior commercial bank officials indicate that the amounts were in fact Liberian dollars and meant to stimulate the economy, for example in mortgage schemes, agricultural  and construction loans that are part of the bank’s mandate to improve macroeconomic stability under the difficult circumstances of Ebola and COVID-19. Management indicated that there are currently no non-performing loans on the books of the commercial banks. Maturities of the loans were revised to help Liberian borrowers. Clearly if the audit report did not ensure quality assurance to properly document the magnitude of non-performing loans, through simple arithmetic processes, what else did the auditors get wrong?

The audit cited amounts paid as part of the bank’s corporate social responsibility posture. But the auditors did not trace the funds to ensure that the named organizations or their financial authorities received the monies in question. Thus no crime was uncovered, and the monies were destined for social causes that could ensure cohesion among Liberians.

In conclusion, the politically motivated audit of the CBL has not uncovered any crime, misapplication, or diversion of public funds. The only objective achieved so far is the attempt to sully the reputation of consummate professionals who have done extremely well to achieve macroeconomic stability, including improved liquidity within the banking system. That may change now as the named Acting Governor is coming from a banking institution that needs to be closely monitored for possible capital impairment. Whether the conflict of interest presented by this new appointment was not considered by the Boakai Administration is food for thought. And so it goes.

Note: The opinions expressed here are solely those of the author and do not reflect the views of FrontPage Africa.

Capitol Hill, Monrovia – The chairman of the Senate Committee on Public Accounts, Expenditure and Audit, Senator Amara M. Konneh, has called on the Executive branch to ensure the full implementation of audit reports released by the General Auditing Commission (GAC) by investigating and prosecuting past and current government officials accused of alleged corruption and financial improprieties.

By Obediah Johnson, obediah.johnson@frontpageafricaonline.com

The Gbarpolu County senator observed that past and current governments have been struggling to ensure the prosecution of individuals named in these audit reports and findings released by both the GAC and the Liberia Anti-Corruption Commission (LACC). 

He made these comments at a brief ceremony marking the launch of public hearings on audit reports released by the General Auditing Commission (GAC) held at Capitol Building in Monrovia on Monday, July 15.

Senator Konneh maintained recommendations contained in previous reports for punitive actions to be taken against individuals found guilty of corruption or misapplying public finances are not implemented by the government, through the Executive.

He said though the government and citizens are eager for the betterment of Liberia, the rate at which the government develops a country can only be substantially determined by three factors.

He named the factors as government’s ability to fix the economy and connect it with other economies in neighboring and other countries, maintaining sustainable public finances and assigned monies and the enforcement of the rule of law.

He stressed the need for trade and economic activities to be intensified between Liberia and its neighboring countries.

Senator Konneh noted that though it is a herculean task for lawmakers to review the more than 180 audit reports released by the Auditor General, members of the PAC committee are committed to establish how public finances were expended by government officials and also help to ensure a strong public financial management system.

He stressed that any public official who violates the laws of the country on the expenditure of public funds must be made to face the consequence.

“The third point is that-even when you fix the first one (economy) and you start to do business with your neighbors and would-be countries, if you don’t enforce the rule of law; if you break the law you will bear the consequences for it (or else), this hing will not work. We can do all the hearings here; send our recommendations to our leaders or the Executive, the LACC or Justice Ministry will come in-but it’s that prosecution part that we are struggling with in our country.”

He stated that Liberia would not experience rapid economic growth and development if the rule of law was not being upheld in the country. “The Auditor General has done an excellent job to produce these reports. Our job now in this 55th Legislature is to open these reports to the public so you can know what’s inside.”

Senator Konneh emphasized that recommendations that would be proffered to the Executive from the National Legislature would not be manufactured by lawmakers, but ones that would derive from these audit reports.

In the cases of compliance issues, he added that the PAC would expect the new heads of government ministries, agencies and State Owned Enterprises “to fix these problems.”

“In the case of egregious financial improprieties, we will expect the President to get the LACC and other anti-graft institutions in the executive branch to investigate those others and take them to court.”

He, however, used the occasion to commend the Speaker of the House of Representatives and Senate Pro Tempore Fonati Koffa and Nyonblee Karnga Lawrence respectively, for their commitment to ensuring transparency and accountability in public finances.

Also speaking, the chairman of the PAC Committee of the House of Representatives, Clarence Gahr, called on members of the 55th National Legislature to hold together, regardless of political affiliation, and muster the courage to fight against corruption in the public sector.

He welcomed the move made by lawmakers to provide additional support to integrity institutions during the passage of the national budget, but urged his colleagues to do more in curbing and fighting corruption.

“The ARREST Agenda of President Boakai’s Administration focuses on the fight against corruption and calls for transparency in all government business dealings. This government, ministers, civil servants and all elected Public Officials, are tasked with perusing this goal.”

However, Representative Gahr noted, that government must be subjected to scrutiny. “As we take on the Leadership of the Joint Public Accounts Committees, we have received more than 200 reports in back lodge, it’s a major challenge. These challenges are basically surrounding financial constraints. The Joint PAC in its new vision wants to publish at least five (5) to ten (10) consolidated reports for 2024. We have agreed to forgo our vacation in achieving this task. We can assure the Liberian people and partners that we are doing this to ensure everyone who in their discharged of his/her duties misused or mismanage public funds are held accountable.”

He added that the Joint Public Accounts Committee has also unanimously agreed to have a time limit to the Auditor General reports.

He disclosed that upon receiving the reports from the Auditor General, the PAC will conduct public hearings and publish its findings within a 90 day period.

Representative Gahr, however, called on President Joseph Nyuma Boakai to mandate the Minister of Finance to adhere to the Acts creating anti-graft institutions by giving them full financial independence in ensuring they perform their various responsibilities void of any interference and delay.

“As we assembled here in respect of our duties, we want to urge every public official, past and present to adhere in making themselves available when ever requested by the committee. It’s necessary all public officials answer to quarries raised by the Auditor General in these reports as to ascertain witness statements in presenting fair opinions on the AG reports to our various chambers. We want to commit to our partners and Liberians that opinions express in these reports will be void of partisanship, tribal basis and all others forms of biases; we will be very much professional, independent and above all patriotic in the expression of our opinions.”

Meanwhile, the Joint PAC of the National Legislature will conduct public hearings on the Auditor General’s report at the Capitol Building in Monrovia beginning this Wednesday, July 17.

The hearings are in keeping with Article 89 of the 1986 Liberian Constitution and Section 4.2(g) of the General Auditing Commission (GAC) Act of 2015.

Comprising of members from both Houses, the committee plays a crucial oversight role by examining government expenditures and ensuring transparency and accountability. 

It reviews public finances, audits government accounts, and makes recommendations to enhance fiscal responsibility and efficiency. The committee contributes to good governance by holding the government accountable for its use of public funds.

It is assisted by a Secretariat which was established during the 53rd National Legislature in April 2013.

Monrovia – The General Auditing Commission (GAC) has conducted and submitted to the National Legislature a compliance audit of the Executive Protection Service (EPS) for the Period July 1, 2018 to December 31, 2023. The audit report identified multiple issues of significant materiality that affected the operations of the Executive Protection Service for the periods under audit.

According to the report, the EPS management made payments for goods and services amounting to US$24,749,002.00 and L$621,949,854.95 without evidence of adequate supporting documents such as; payment vouchers, copy of checks, cash invoices, delivery notes and other relevant documents to authenticate the transactions. Furthermore, these payments were made in the names of employees rather than the vendors, service providers, direct beneficiaries or legally authorized representatives.

The payments included Special Operation Services and Intelligence Services expenditures amounting to US$15,709,952.00, expended without evidence of field activities reports as required by Section 2(1-6) of the National Security Reform and Intelligence Act of 2011 and Regulation P.9 (2) of the PFM Act of 2009 as Amended and Restated 2019 and Regulations B.28 of the PFM Act of 2009 as Amended and Restated 2019. The GAC recommended that management should fully account for expenditures made without adequate supporting documents.

Further, the report stated that the EPS management received several transfers totaling US$3,800,000.00 and L$172,785,500.00 from the Ministry of Finance and Development Planning (MFDP) through the Central Bank of Liberia (CBL) without adequate supporting documentation to explain the purposes for the transfers.

The EPS  management expended an excess of US$12,177,865.76 between the approved budget and the fiscal outturn reports for FY 2018/2019 to FY2023 without evidence of an approved re-casted budget contrary to  Regulation E.13 of the PFM Act of 2009 as amended and restated 2019 states: “(1) If additional funds are required because of increased activity costs that could not be foreseen when the annual estimates were presented, application for supplementary estimate shall be made to the Minister through the Line Minister, Sector Minister, or appropriate authority. (2) The accompanying memorandum shall explain how the extra costs became necessary.”

During the period under review, the EPS was headed by Trokon Roberts under the Coalition for Democratic Change Government.

The GAC recommended that management should account for the expenditure in excess of the approved budget limits without evidence of supplementary and /or recast budget and subsequent approval by the National Legislature.

No account for deducted salaries

The report further stated that management did not remit into the Government of Liberia consolidated account the total amounts of US$126,860 deducted from the salaries of EPS Agents that were suspended or absent from duties without approved leave. The GAC has recommended that the EPS Management should account for salaries deducted from suspended Agents amounting to US$126,860.00, which were not remitted into the consolidated account as required.

The GAC report noted the following irregularities were associated with the EPS Employees Development Funds: The bank statement showed that Mr. James E. G. Helb, Chairman of the Employees Development Funds and an “A” signatory to the account withdrew more than US$188,630 from the funds’ bank account using the mobile transfer Apps U- Direct and LEO Apps, for personal use.

Mr. James E. G. Helb also withdrew the amount of US$50,000 to purchase land without authorization from the Board for resale to the employees, non-compliant with approved policy.

Additionally, the GAC observed that Management maintained the names of 11 former officers that were either dead, dismissed or resigned on the payroll beyond the statutory period. The total salary paid in the names of the separated officers for the periods under audit was US$14,925 which the report states should be accounted for by management.

The GAC further observed that 20 individuals were interviewed but did not pass the interview for employment according to the interview panel records. The report found that three submitted fake high school credentials, three performed very poorly in the interview, six did not take the aptitude test, and six claimed they graduated from high school but could not prove it.  However, a review of the personnel listing and payroll by the GAC indicated that some of the disqualified applicants were hired by EPS despite their disqualification by the interview panel.

The audit report also uncovered that 449 staff recruited during the audit period exceeded their two years probationary period without undergoing the Basic Police and VIP training as required by the Standard Operating Procedures. Section 1.7 of the Executive Protection Service Standard Operational Procedure (SOP) revised handbook of May 2019 states that “Within 2 years’ probationary period, the EPS will provide basic police and VIP Protection training for the new employees. During the period of training, all recruits/trainees are expected to perform to the best of their ability. In the event where a recruit/trainee performs below standards during the training period, he/she shall immediately be dropped from the class and lose his/her employment status.”

In conclusion, the report stated that based on the audit work performed, and because of the significance of the matters noted in the Basis for Adverse Conclusion, the financial transactions and operations of the Executive Protection Service are not in compliance with stated laws and regulations for the fiscal years July 1, 2018 to December 31, 2023.

Monrovia – The General Auditing Commission has been rated the most independent Supreme Audit Institution in West Africa by the World Bank. According to a report launched recently at a local hotel in Monrovia which reviewed the independence of the GAC and how it affects the effectiveness of external audit function in Liberia.

The Report used benchmarking exercise against international standards and practices to determine the extent of independence of the GAC. The World Bank’s Supreme Audit Institution Independence Index was launched in 2021.

According to a video presentation during the launch by the United States Government Accountability Office (GAO), Director for International Affairs on behalf of the Auditor General of the United States. The GAO is the United States Federal Government equivalent of the GAC.  He intimated that the idea of the Supreme Audit Institutions Independence Index was borne out of a visit by the late former Auditor General of Liberia, Madam Yusador Gaye to the Auditor General of the United States in 2018, during which time she informed the US Auditor General about the threat to the independence of the Office of the Auditor General of Liberia. As a result of the Liberian Auditor General’s discussion with the US Auditor General, the US Auditor General discussed the situation with the International Organizations of Supreme Audit Institutions (INTOSAIs) and thereafter, the body established the Supreme Audit Institutions Independence Index to track the independence of Supreme Audit Institutions around the world. INTOSAI is a United Nations affiliated body that sets auditing standards for all UN member countries Governments auditing offices.

Based on the World Bank assessment of the GAC, the GAC’s independence index score is 8.0, making the GAC the most independent Supreme Audit Institution in West Africa. Liberia surpassed Ghana which was the most independent Supreme Audit institution in West Africa until the most recent scoring. Ghana dropped to 6.5 because it controversially removed its Auditor General and it does not competitively recruit its Auditor General.

The Report has ten key areas for independence assessments: constitution and legal framework- the Auditor General  is competitively recruited with a fixed tenure of seven years and can only be removed for cause, the Auditor General reports to the National Legislature and the GAC is a separate employer and is not part of the civil Service of Liberia; transparency in the process of appointing the SAI head;   types of audit; operational autonomy; staffing autonomy; audit mandate; audit scope autonomy; access to records and information and rights and obligations on audit report.

The GAC worst score was financial autonomy, the commission scored zero.  Primarily because the National Legislature has not operationalized the GAC’s financial independence since the passage of the GAC Act in 2014. According to Section 3.4 of the Act, the GAC shall submit its budget to the National Legislature for approval and a copy to the Minister of Finance and Development Planning for information only.   

After the passage of the overall national budget and signing of the budget into law by the President of Liberia, the GAC should receive its allotment in two trenches, half of its budget within the first week of the first half of the fiscal year, and the second trench within the first week of the second half of the fiscal year.   The GAC’s management has submitted its budget to the Joint Public Accounts, Audits and Expenditure Committee as per the Act but the National Legislature has never approved GAC’s budget for inclusion in the National Budget.  Therefore, the Ministry of Finance and Development Planning has consistently set budget ceilings for the GAC in violation of the Act. During a remark at the launch of the Ghana National Audit Office Independence Index on June 18, 2024, in Accra, Ghana, the Auditor General of Liberia, Mr. P. Garswa Jackson expressed exuberance over GAC’s achievements and thanked the World Bank for the recognition. He however, indicated that the GAC will continue to strive for excellence and will continue to engage all stakeholders including the Government of Liberia and the international partners for the GAC to achieve its financial autonomy(independence) as per the GAC Act of 2014. 

MONROVIA – When President Boakai mounted the podium on January 22, 2024 to give the most important speech of his life right after his swearing in by Chief Justice Sie-A-Nyene Gyapay Youh, he promised to lead a government that will bring about real change and not a government that will do business as usual.

By Gerald C. Koinyeneh – gerald.koinyeneh@frontpageafricaonline.com

However, with just one month into the JNB-JKK administration, their government continues to come under damning criticisms over “series of missteps’ ‘ – ranging from poor handling of the inaugural activities, appointment of corrupt officials and illegal appointments.

On Tuesday, President Boakai named several new nominees to some already occupied tenured positions in what some have termed as a flagrant disregard to the Act establishing those institutions.

Security of tenure, usually granted in to civil service and in academic appointments is considered an essential condition of maintaining the independence and freedom of those services from political or partisan control.

It was against this background that the Government of Liberia, under Africa’s first elected female President, Ellen Johnson Sirleaf embarked on establishing, through acts of legislation, several government entities including integrity institutions with tenure.

However, successive governments after Sirleaf, including the one that is being governed by her own party and her Vice President of 12 years have attempted or are attempting to remove these tenure positions.  

In 2018, then President Weah, and his coalition government began to appoint partisans and supporters to positions with officials actively serving their tenures. Mr. Martin Sallie Kollie, who then served as Director General of the National Lottery Authority, challenged the newly minted government’s attempt to replace him, despite his position being tenured.

The Weah-led government argued that it was within the President’s authority to appoint government officials. However, the Supreme Court, in its ruling for a Writ of Prohibition against the new appointment, opined that the Act of Legislature establishing the National Lottery Authority in no way usurped the powers of the President.

Six years later, President Boakai is now threading the same path. His latest appointment affects several key institutions, including the Liberia Telecommunication Authority (LTA), the Governance Commission (GC), the National Public Health Institute (NPHIL), the National Lottery, and the National Identification Registry (NIR).

Just as in 2018, Boakai’s latest wave of appointments of officials to tenured positions that are currently being occupied is causing political turmoil and has drawn criticisms from a wide range of the public including civil society organizations.

 ‘Undermine tenets of democracy’

Weighing in on the President’s latest appointments, the Center for Transparency and Accountability in Liberia (CENTAL) said it was dismay over the action and said the President’s action does not only violate relevant laws, as enacted by the Legislature and interpreted by the Supreme Court, but undermines the tenets of good governance, which tenures seek to promote and defend.

“Given President Boakai’s professed commitment to good governance and the fight against corruption, it is of great importance that his actions are consistent with what he professes. Liberia cannot afford a continuation of disregard for the rule of law and promotion of political interests, at the expense of our hard fought and growing democracy,” CENTAL said in a statement released on Tuesday.

“We cannot continue to repeat the same mistakes of yesterday when such can clearly be avoided. If business must not be as usual, keen attention must be paid to the excesses of yesterday with an eye to averting recurrence,” CENTAL said.

CENTAL, among several recommendations, called on President Boakai to immediately recall appointments to positions occupied by persons with active tenures, and in addition called on him to constitute the membership of the National Environment Policy Council of Liberia to allow for a recruitment process for the position of Executive Director of the Environmental Protection Agency (EPA), consistent with section 16 of the EPA Act.

“By appointing an Acting Executive Director, CENTAL believes the trend of interim appointments continues without any deliberate action to comply with the EPA Act. This will be business as usual and not a deviation from the ugly past, which the President has severally promised,” the integrity watch said.

NIR boss vows court action

Some incumbent officials whose tenured positions are being affected have threatened legal action against the government.

Andrew Peters, the Executive Director of the National Identification Registry (NIR), has declared his intention to pursue legal action against President Joseph N. Boakai’s government over what he perceives as the improper appointment of Dr. Edward Liberty as the next executive director of NIR.

Established by an Act of the National Legislature in 2011, the NIR was tasked with tackling issues such as double dipping, illegal migration, and identity theft. Its mandate includes the design and issuance of biometric cards, each featuring a unique Social Security Number, to serve as the primary government-approved identity for various purposes including birth and death registration, passports, banking, driver’s licenses, and social security benefits.

Speaking at a press conference on Tuesday, Peters asserted that according to the Act governing the institution, the Board of Registrars holds the authority to appoint the executive director, who is to serve a four-year term. He contends that the President’s decision violates this law, prompting him to seek legal recourse through the courts.

Peters noted that his own appointment as executive director was endorsed and confirmed through a resolution passed on June 22, 2023.

In the midst of this legal dispute, Peters has urged supporters of his party, the NPP, to remain composed while his legal team works to navigate the judicial process in pursuit of justice.

 LTA Commissioners threaten to go to court

Meanwhile, all five Commissioners at the Liberia Telecommunications Authority were replaced despite serving active tenures. President Boakai nominated Abdullah Kamara as chairperson, while Patrick Honnah, former Lofa County Representative Clarence Kortu Massaquoi, former Margibi Rep. Ben A. Fofana and Angela Bush Cassel, were all nominated as Commissioners.

This prompted all five incumbent Commissioners of the LTA to respond. In a letter addressed to the President, the commissioners led by Chairperson Edwina Crump Zackpah said: “We write to draw your attention to a matter of considerable concern regarding our roles within the LTA. As you are aware, we currently serve under tenure within the organization, each of us having two-plus years remaining in our terms. However, it has recently come to our attention that new appointments have been made to the same position we occupy, notwithstanding our existing tenures.”

They continued: “While we appreciate that such decisions are often made with careful deliberation and in the national interest, we believe there may have been a misunderstanding regarding the status of our tenures. As members of the board of commissioners of the LTA, we feel compelled to remind your excellency of our tenured status. Part Three, Section 9(3) of the Telecommunication Act of 2007, which established the LTA, explicitly prohibits the executive from replacing board members during their unexpired terms. The term of office for the commissioners shall be four years. The appointment of any commissioner may be renewed by the president for another term of four years. No member of the Commission shall serve for more than two terms.”

FrontPage Africa has gathered that the Commissioners are now contemplating on seeking legal redress if the President goes ahead with the nomination.

FPA has also gathered that the appointment of Prof. Alaric Tokpah as Governance Commission Chair by Boakai has offset the workings at the GC, and has left incumbent chairperson Garrison Yealue contemplating whether to launch a legal battle or quietly leave the Commission.

Lawmakers Weigh in

The situation has also dominated conversations among lawmakers on Capitol Hill, among them include one of the Unity Party Alliance’s strong supporters, Senator Darius Dillon.

Dillon has admitted to public criticisms of ‘some missteps’ in appointments being made by the President.

“We note that there are some early missteps. We note those things, and we don’t get angry. This Rescue Mission is not about a person; it is about a country,” said Dillon during an evening appearance on OK FM on Monday.

He revealed that the President has been appointing people to positions in government, which should not have been the case in the first place, including tenured positions.

According to Dillon, the situation means that the Boakai administration has to go back to the drawing board to look at all of the Acts to know where the President can appoint, where he cannot appoint, and what alternatives exist.

Rep. Musa Hassan Bility (District #7, Nimba County) has also been vocal against the President’s latest appointments.

Referencing Boakia’s latest appointment of officials to tenured positions, Rep. Bility wrote on his Facebook page: “Liberians expect the very best from you. You see, Mr. President, like you I swore to uphold the Constitution of the Republic of Liberia. So, if these appointments are not withdrawn in time, I will be constrained to take the necessary actions to ‘DEFEND AND UPHOLD’ the laws. Mr. President, we condemned and criticized the past administration on this issue of tenure and we must ensure that the mistakes of the past are not repeated.”

MONROVIA – The General Auditing Commission in partnership with the GIZ and African Organizations of Supreme Audits Institutions (AFROSAI-E) climaxed a four-day Technology Driven Citizen Engagement Regional Training in Monrovia with an adoption plan.

By M. Dennise Nimpson

The gathering ended with a two-year roadmap leading to the development of a Mobile App named and styled CitizenEye for Liberia, Kenya, and Botswana was adopted.

Prior to the adoption of the roadmap, Auditor General P. Garsaw Jackson said the working session is occasioned by assessments and situational analysis conducted in Botswana, Kenya, and Liberia.

“This workshop is a follow-up activity from the results of needs assessments and situational analysis performed in Botswana, Kenya, and Liberia,” he said.

The Auditor General said the App will provide a channel for the citizen to engage Audit offices of the respective countries as means to foster good governance by reporting information concerning embezzlement and misuse of public funds with the protection of their identity.

“This platform will enable citizens and residents who have information relating to misappropriation and misapplication of public funds, systems deficiencies, and noncompliance with the relevant laws and regulations the avenue to safely and anonymously provide vital information to our respective national audit offices without fear of being victimized” he noted.

Making a remark at the end of the four-day regional training on Friday, February 26, 2023, Deputy Auditor General Winsley Nanka lauded the AFROSAI-E to have chosen Liberia as the venue to host the workshop and appreciated the level of support from GIZ to develop the APP.

Mr. Nanka stressed the GAC commitment to supporting the CitizenEye App.

 The training brought together auditors from Liberia, Kenya, and Botswana with facilitators from Ghana, Uganda, and South Africa.

MONROVIA – A performance audit conducted by the General Audit Commission (GAC)  on the Generation of Revenue from Artisanal Mining Activities in Liberia show that there has been a downward trend in revenue from registration fees and renewal of licenses  from  artisanal mining due to increased illicit mining activities, excessive bureaucratic delays in the renewal of artisanal mining licenses, and  the inability of the Ministry  to adequately monitor and supervise the artisanal mining sector. This is mainly due to acute manpower shortage, budgetary  and logistical constraints facing the Ministry.

According to the data reviewed by the GAC  in 2017, the Bureau of Mines generated revenue of US$135,512.50 from artisanal and small-scale mining registration and license renewals activities around the country and in 2018 generated revenue of US$178,240.00 or a 32% increase over the previous year. However, in 2019, the Bureau of Mines generated revenue of US$118,050.00 or a 34% decrease as compared to the previous year. The Ministry officials confirmed to GAC  that the decrease was due to the increase in illicit mining activities.

From interviews held with officials at the central office and on the field, it was noted that, 69% of field staff (Patrolmen, inspectors and Mining agents) conducting inspection, and monitoring mining sites and miners are not employed by the Ministry. The interviews also indicated that the high rate of unemployment of field staff was due to lack of funds /low budgetary allotment from government to the ministry.

Number of Employed and Unemployed Patrolmen, Inspectors and Mining Agents at MME

Interviews conducted with officials of the Ministry of Mines during the audit  field visit by the GAC, revealed that the miners were operating without mining licenses due to the following reasons: (a) Too much bureaucracy/ Lack of decentralization in processing registration and issuing mining licenses, (b) inadequate monitoring and inspection at mining sites by the Ministry of Mines and Energy. The listed reasons encourage miners to carryout mining activities without mining licenses, which leads to loss of revenue by the Government from mining activities.

Interviews conducted  with the Ministry’s officials   revealed that that the Ministry does not have mining offices to carry out the registration and issuance of mining licenses for miners, dealers and brokers who are required to regularly or yearly obtain mining licenses in the  mining regions.  In addition,  during the field visit; the GAC  noted that the lack of registration offices in the f mining regions caused delays in the issuance of mining licenses, thus leading to increase miners, brokers and dealers in  the counties to operate illegally.

The GAC established   during the audit  that the standard time set for processing mining licenses should be two weeks/ ten working days. However, interview conducted with miners during the field visit found that the processing of licenses often takes six to twelve months. It was also indicated that, sometimes when miners apply for licenses, they do not get them until the time expires, due to the delay in processing the license at the central office. The GAC noted that the slow process discourages some miners from going to the head office (Monrovia) to apply for licenses; but, they continue to carryout mining activities, thereby depriving government of needed revenue.

It was noted from interviews conducted  that the Bureau of Mines and its field agents have not been carrying out monitoring and inspection adequately in the field due to lack of logistics, such as vehicles and motorbikes. A situation that resulted to the increase in illicit mining activities and loss of revenue. Ninety percent (90%) of the staff interviewed stated that there was not regular monitoring of miners to ensure compliance with the law, the report found.

For example, Patrolmen, Mining Agents and Inspectors interviewed at the mining sites by the GAC  showed that 65% of field staff  has had some training while 35% have no training to improve their skills in carrying out their work effectively.

Given the findings, the GAC therefore recommended the following to improve efficiency at the Ministry::

The Ministry of Mines and Energy should ensure full implementation of the mining laws by establishing functional regional offices to register miners and monitor their activities.

The Ministry should also ensure that Mining Licenses are issue in two weeks/ten working days from the day of application as per its standards, to help reduce illicit mining within the country and enable government receive lawful revenue from miners;

The Ministry of Mines and Energy should ensure periodic monitoring/ inspection of mines/mining sites, mining licenses and mining agreements across the country as required by the Ministry’s mining regulations;

 The Ministry should provide quarterly trainings in areas of mining procedures, environmental management, mining health and safety, map reading, soil profiling and stratigraphy, etc. for its personnel both in house and on the field;

The Ministry of Mines should ensure all MME individuals working under its supervision as Mining agents, Patrolmen and Mining Inspectors are employed to avoid being compromised when carrying out their duties;

The Ministry of Mines and Energy should decentralize its activities by ensuring that there are functional offices in the  mining regions to reduce the bureaucracy, enhance the issuance of mining licenses and reduce illicit mining in the country;

The Ministry of Mines and Energy should establish an interface/automated system between Cadastre and LRA to capture revenue when generated at MME and confirmed when payment is made at LRA. This system will assist in determining the completeness of revenue and facilitate the future reconciliation between bills raised at Cadastre and payments made at LRA;

The Ministry should establish a central database for artisanal and small-scale miners with connectivity to regional offices where applicable. By so doing, miners’ application can be processed without coming to Monrovia. The system should be properly tailored so that miners are notified and ask to pay renewal licenses automatically;

 The Ministry of Mines and Energy should require written monthly/quarterly reports from field staff; Mining agents, Patrolmen and Mining Inspectors, relative to their activities and assigned areas. The government of Liberia should consider providing the needed logistics to MME to enable her fully capacitate the Inspectorate Division to carry out her functions as indicated in the law.

The audit conducted for the fiscal years  July 1, 2016 to June 30, 2019 was  motivated by among others,   FrontPage Africa Newspaper dated May 28, 2019 quoted a Representative of River Gee County, accusing authorities of Ministry of Mines and Energy of being responsible for the illicit mining across Liberia. According to the paper, the Representative alleged that the Ministry decision to place a ban on the granting of permits to local miners to use heavy equipment such as dredges, has opened the floodgate for illicit mining activities in Liberia which is depriving the government of needed revenues; thereby causing the government to lose a lot of money and Daily Observer Newspaper  edition of  May 22, 2019  under the caption “Illicit Mining Costs Liberia Millions” highlighted the “unprecedented inflow of mining dissidents and proliferation of illegal alluvial and small-scale mining activities in the country”.

Also, an article in Growth to Development captioned “Priorities for Sustainably Reducing Poverty and Achieving Middle-Income Status by 2030” which says the mining sector is a key contributing factor to the Liberian economy. Liberia’s economy grew by an estimated 2.5 percent in 2017, as the mining sector compensated for the anemic performance of other sectors”