MONROVIA, LIBERIA – On Tuesday, February 25, 2025, Senator Amara Konneh of Gbarpolu County led a critical engagement at the Liberian Senate with Minister of Finance and Development Planning, Hon. Augustine Ngafuan, discussing the proposed FY2025 Budget and addressing several financial concerns raised by lawmakers. The meeting highlighted pressing issues, including the controversial $17 million allocated for legislative hearings in the FY2024 budget and the failure of State-Owned Enterprises (SOEs) to fulfill their financial commitments to the national budget.
The discussions focused on several budget-related concerns, including the impact of exchange rate fluctuations on the FY2025 Budget, which features two different exchange rates for revenue and expenditures. Additionally, the Senate raised alarm over the failure of SOEs to meet their reporting obligations under the Amended and Restated Public Finance Management (PFM) Act, particularly in relation to Section 59(2).
Minister Ngafuan, in his response, expressed his commitment to ensuring budget credibility and promised to return to the Senate with more detailed explanations next week. His previous appearance at the Senate was in response to a summons concerning delays in the printing and distribution of the approved FY2025 National Budget. However, the session quickly expanded into broader concerns about alleged financial mismanagement, including the $17 million allocated for legislative hearings.
The substantial sum of $17 million, earmarked for legislative hearings, has sparked significant controversy. Senator Konneh raised concerns about the allocation, demanding a full explanation from the Ministry of Finance regarding how the funds were spent. This led to a Senate Plenary decision requiring Minister Ngafuan to respond under oath to clarify the expenditure, as lawmakers sought assurances that the allocation aligned with national priorities.
The Senate’s scrutiny also delved into discrepancies in the budget, such as the $300,000 provision for Karpower in the FY2025 budget, despite the Legislature’s removal of the allocation before the budget’s passage. These inconsistencies have raised suspicions of possible budget manipulation and unauthorized spending.
While Minister Ngafuan did not confirm the allegations outright, he acknowledged the need for swift corrective actions to address financial irregularities. He emphasized his commitment to transparency and accountability, though he noted that his tenure, which began in September 2024, may limit his knowledge of financial decisions made before his appointment.
The Minister assured senators that decisive actions would be taken to eliminate financial mismanagement, stressing his willingness to work closely with the legislature to restore trust in government spending.
