MONROVIA – An audit by the Auditor General has revealed significant financial and operational discrepancies in the Liberia Road Assets Project for the period from July 1, 2021, to December 31, 2022. These findings raise serious concerns about fiscal management, transparency, and accountability within the project.
The Infrastructure Implementation Unit failed to deduct and remit withholding taxes totaling $110,138.28. Similarly, contractors Chico and CICO did not remit taxes and duties amounting to $1,512,601.66, while vendors’ withholding taxes of $47,950.88 were also unaccounted for.
Unpaid claims of $6,152,245.88 and LRD 35,280,459.86 for routine maintenance services provided by CICO and CHICO were not disclosed in the financial statements, highlighting a lack of transparency in reporting.
A discrepancy of $31,918 was observed between the Interim Financial Report and the Financial Statement for cumulative balances, indicating potential errors or omissions in financial documentation.
Financial statements signed by the PFMU Manager and Project Coordinator lacked specific preparation and signing dates, violating the cash basis requirements mandated by the Government of Liberia.
Payments amounting to $1,462,559.24 for goods and services were made without adequate supporting documents, casting doubt on the legitimacy of these transactions. Purchases totaling $18,093.80 lacked necessary documentation such as quotations and bid evaluations.
The audit revealed delays in petty cash float replenishment, initiated only when the cash balance exceeded 90% instead of the required 50%. Additionally, NASSCORP deductions for staff were not made or remitted, further indicating administrative lapses.
Two land deeds purchased by contractors were unavailable for inspection, raising questions about property management and transparency.
The Project Manager’s office and camps in Weala, Margibi County, and Palala, Bong County, were poorly maintained and abandoned, reflecting neglect and mismanagement of project resources.
Fixed assets were not properly coded, and the asset register was incomplete. There was no evidence of periodic physical verification or asset movement tracking, which are essential for maintaining accountability.
The World Bank reduced the Government of Liberia’s counterpart contribution for road maintenance from $47.8 million to $35 million. The audit found no evidence of government contributions, leading to a suspension order issued by the Infrastructure Implementation Unit on October 1, 2022.
The Auditor General’s report underscores the need for urgent corrective measures to address these lapses and ensure accountability within the Liberia Road Assets Project, emphasizing the importance of transparency and fiscal responsibility.
