Monrovia – Auditor General P. Garswa Jackson has outlined punitive measures being taken by the General Auditing Commission (GAC) and the Ministry of Finance and Development Planning against heads and comptrollers of various government ministries and agencies for delaying the submission of their financial statements for the conduct of audits. 

By Obediah Johnson, obediah.johnson@frontpageafricaonline.com

According to him, the Public Financial Management law of Liberia mandates every government ministry and agency to prepare and submit financial statements to the offices of the Auditor General and Comptroller General two months after the end of every fiscal year.

Jackson said this measure, which is intended to promote accountability and transparency and hold public officials accountable for their stewardship, was consistently violated before his ascendancy at the GAC.  

He made these comments when he appeared as a guest on state radio ELBC on Monday, May 11.

He pointed out that following the submission of these financial statements by line government ministries and agencies, the offices of the Auditor General and Comptroller General consolidate those statements and prepare consolidated fund financial statements for the GAC to conduct audits.

“Although we have not been able to perform the 300 audits within our mandate, we have regularized the audits of the consolidated financial statements, which means we have been able to audit the government of Liberia every single year. This is a major achievement because, before I became Auditor General, the consolidated financial statements were unaudited for two years. This was not the fault of the GAC. The GAC had always been a place to perform these audits, but the Ministry of Finance was not preparing or submitting these financial statements to the office of the Auditor General,” he noted.

Jackson disclosed that only 40% of those heading various government ministries and agencies were timely in submitting their financial statements prior to taking over the GAC.

To address the situation, Jackson pointed out that his office built a relationship with the ministry of finance to ensure that salaries of heads and comptrollers of various government ministries and agencies are withheld as part of punitive measures for delaying the submission of their financial statements.

He further disclosed that the GAC has conducted several unprecedented audits under this current administration for the first time in Liberia.

He named those audits as ones conducted on the office of the President (Ministry of State for Presidential Affairs), the National Legislature, the Judiciary branch, the Central Bank of Liberia (CBL), the Civil Service payroll, domestic debts, revenue system reconciliation audits, amongst others.

“This is the first time the GAC has been able to perform this audit on the office of the President at the Ministry of State. This sets a precedent that absolutely no office or public official in the country is exempt from accounting for what they used from public resources. Sometimes people say, ‘The GAC is putting out these reports, and nothing is happening.’ We can only execute our mandates,” he added.

Jackson emphasized that audit reports from the commission are submitted to the National Legislature, through its Public Accounts Committee (GAC), to conduct public hearings and advance recommendations to the office of the President for action.

He stated that the Liberia Anti-Corruption Commission (LACC) can also investigate these reports and prosecute those involved.

He stressed that the conduct of audits in Liberia is essential to ensure that finances allocated to improve the provision of public services to Liberians.

Jackson observed that though some government ministries and agencies are not implementing recommendations contained in the audit reports released by the GAC, a huge number of others are cooperating.

He, however, vowed to name and shame those institutions that are failing to take action on these audit recommendations at the appropriate time.

MONROVIA – A damning audit report by the General Auditing Commission (GAC) has revealed that the Ministry of Finance and Development Planning (MFDP) facilitated disbursements amounting to US$2,806,470 in violation of the 2024 National Budget. The funds were channeled to the Ministries of Public Works and Labor, the Liberia Airport Authority, and the Bureau of Concessions without legislative approval or an approved supplementary budget, according to the report. 

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

The audit, covering the period January 1 to December 23, 2024, further revealed that the MFDP did not account for transactions totaling US$2,850,035.38. According to Auditor General P. Garswa Jackson, Sr., these transactions were consummated without supporting documentation such as payment vouchers, invoices, or delivery notes—raising questions about their validity and accuracy.

“In the absence of adequate supporting documents, the validity, occurrence, and accuracy of payments may not be assured. This may lead to misappropriation of public funds,” the GAC cautioned.

The report also flagged a broader pattern of fiscal indiscipline at the ministry. It found that the MFDP under-disbursed budgetary allotments to 106 ministries and agencies by more than US$78.2 million, with no evidence that the Finance Minister or sector ministers issued warnings about significant budget variations, as required by the Public Financial Management (PFM) Act.

The GAC warned that unauthorized under-disbursements could impair agencies’ ability to fulfill their mandates and recommended that heads of government agencies promptly inform sector ministers about any circumstances likely to materially affect budgetary results. Sector ministers, in turn, are expected to notify the Minister of Finance.

The audit also cited irregularities in excess disbursements. It noted that the MFDP facilitated additional expenditures of US$2,806,470 above the approved budget without legislative approval. The GAC warned that such practices could lead to the misapplication and misappropriation of public resources.

On revenue management, the GAC highlighted concerns at the Liberia Revenue Authority (LRA), which established 36 transitory accounts in commercial banks for government revenue collection. However, auditors found no evidence of reconciliation reports for these accounts.

The reported stated that there is a risk that non-daily reconciliation of the revenue transitory accounts may facilitate fraudulent financial practices, leading to theft and/or non-reporting of significant government revenue. It recommended daily reconciliation and immediate sweeping of funds into the Consolidated Fund at the Central Bank of Liberia, with no withdrawals other than bank charges.

Given the seriousness of its findings, the GAC urged the Speaker and Members of the House of Representatives, along with the Senate Pro-Tempore and Members of the Liberian Senate, to ensure urgent implementation of the report’s recommendations.

MFDP Responds to GAC Report

In response to FrontPage Africa’s inquiry regarding the General Auditing Commission (GAC) report, the Ministry of Finance and Development Planning through Comptroller and Accountant General of Liberia, Edwood Netty, reaffirmed the ministry’s commitment to strengthening financial management systems, noting that the report—highlighting a significant reduction in unsupported payments—is a sign of ongoing progress.

Netty explained that the flagged amounts are largely due to challenges in archiving and document retrieval. “Many of the transactions in question originate from county-based offices, including rural health centers and local government authorities. These entities submit reports in bulk to their respective sector ministries—such as Health and Internal Affairs—for reporting purposes. While copies of supporting documents are forwarded to MFDP for payment processing, the originals are retained by the sector ministries for audit verification,” he said.

Regarding the remaining amounts categorized as “Payments without Evidence of Adequate Supporting Documents,” Netty emphasized that operational constraints in archiving and retrieving documents played a key role. “All documents are available in hardcopy at MFDP,” he stated. “However, the GAC provided a five-day window to present supporting documentation. Given the volume and movement of files, retrieving everything within that timeframe was challenging, especially considering the audit itself spanned four months.”

To address these challenges, MFDP is implementing an Electronic Document Management System (EDMS) designed to digitize and organize all incoming and outgoing documentation. The system will enable faster access during audits, improve tracking, reduce reliance on manual filing, and integrate with the existing financial management system to enhance reporting accuracy.

“This reform is part of our broader strategy to modernize internal systems, promote transparency, and ensure that Liberia’s public finances are audit-ready,” Netty said. “We remain committed to working with all government institutions to improve documentation standards and strengthen accountability across the public sector.”

The EDMS initiative is expected to streamline operations and reinforce MFDP’s role in providing efficient, transparent, and responsive financial oversight.

The Ministry of Finance has, over the years, been dogged by allegations of off-budget spending. In September 2024, the Liberia Anti-Corruption Commission (LACC) announced the launch of an investigation into claims that the Government of Liberia engaged in off-budget expenditures totaling US$15 million.

According to reports, the Ministry of Finance and Development Planning authorized several controversial expenses under the Unity Party–led government between January and August 2024.

Expenditure Breakdown  

Among the reported expenditures, the government allocated US$2,307,609 to “unexplained miscellaneous” expenses and US$2.5 million for covert operations through the National Security Agency (NSA). The House of Representatives reportedly spent US$1.5 million on special sessions, while the Senate expended US$812,612 for similar activities.

In a statement at the time, the LACC underscored the gravity of the allegations:

“In light of these claims, we wish to address the matter in a manner consistent with our mandate to promote transparency, accountability, and good governance. We take these allegations seriously, as they touch on matters that are core to our institutional objectives. Off-budget expenditures, if confirmed, can undermine public trust in governance, weaken fiscal discipline, and pose risks to the country’s financial integrity.”

The LACC said it had commenced a preliminary review of the allegations, to be followed by a comprehensive investigation aimed at verifying the claims, establishing accountability, and ensuring that legal procedures are followed.

“As an institution charged with safeguarding public resources, we assure the public that we will leave no stone unturned in this investigation. If evidence of wrongdoing is found, we will take the necessary legal actions, including recommending sanctions, prosecutions, and other corrective measures,” the statement concluded.