MONROVIA – A new report from the General Auditing Commission (GAC) has generated debate over financial management at the Ministry of Finance and Development Planning (MFDP), with auditors highlighting undocumented spending of about US$2.85 million during Augustine Ngafuan’s leadership in 2024.
The GAC’s audit of the Government of Liberia’s Consolidated Accounts, released on Monday, September 1, 2025, noted that while Liberia has made progress in strengthening financial management systems, gaps remain in documentation and internal controls. The report drew attention to the US$2.85 million in disbursements that auditors could not verify with supporting paperwork.
The MFDP, however, is pushing back strongly. In a detailed statement, the ministry’s Communications Unit welcomed the GAC’s findings, emphasizing that the report shows clear evidence of progress compared to previous years. “The 2024 Audit Report demonstrates substantial progress in financial management, budget discipline, and accountability under this administration,” the ministry said. “Contrary to some public opinion, the report does not state that any funds are missing or misappropriated by the MFDP.”
One key highlight in the ministry’s response was the change in the audit opinion. In 2023, auditors issued an “Adverse” opinion on the accounts, citing pervasive failures and unreliable financial statements. By contrast, the 2024 opinion was “Qualified,” which the ministry argued reflects meaningful reforms. “The shift from an Adverse to a Qualified audit opinion reflects improvements in budget discipline, documentation and internal controls, debt transparency, reconciliation, and financial reporting,” the MFDP stressed.
The ministry pointed out several areas of progress documented in the audit. For example, in 2023, US$18.97 million was recorded under the Central Bank of Liberia’s Sundry Account without supporting schedules. In 2024, however, transactions to the Sundry Account were fully disclosed with reconciled schedules. Additionally, externally restricted cash balances that went unreported in 2023 were properly disclosed in 2024.
Bank reconciliation also showed marked progress. According to the GAC, 473 bank accounts and 37 transitory accounts were left unreconciled in 2023. In 2024, about 95 percent of accounts were reconciled, with the remainder flagged for closure. The MFDP said these changes underscore its commitment to greater transparency.
On the specific issue of the US$2.85 million without documentation, the MFDP argued that the problem was largely administrative, not financial mismanagement. “Of the more than US$700 million executed in 2024, documentation was validated for all transactions except for US$2.8 million, which is an archiving challenge, not an indication of misappropriation,” the ministry explained. It noted that auditors only gave the ministry five days to produce files during a four-month audit period, making retrieval from crowded archives difficult.
The ministry said it has since taken steps to modernize document storage, including the introduction of manual scanning of transaction records in 2025 and plans to fully implement an Electronic Document Management System (EDMS) within months. “It is precisely in recognition of these facts that the MFDP is investing in an EDMS to automate document storage,” the statement read.
The ministry also addressed concerns about excess expenditure beyond appropriations. It clarified that urgent or unforeseen spending, such as by-elections or emergency interventions, sometimes requires swift action without prior legislative approval. “The budget execution process provides mechanisms for such contingencies, including a contingency reserve fund and provisions for interagency transfers below the two percent threshold that do not require legislative approval,” the MFDP explained.
Citing the Bureau of National Concessions as an example, the MFDP said the bureau’s expenditure exceeded appropriations by US$373,000 in 2024 due to interventions to avert a brewing crisis. It emphasized that such expenditures were reported to the Legislature through regular budget reports, in keeping with transparency requirements.
In its conclusion, the MFDP reiterated that no funds had been misused or misappropriated. “The 2024 Audit Report demonstrates a clear and significant improvement in the management of public finances under the current administration,” the ministry said. “Most transactions were properly documented, and where documentation could not be readily located, it was a reflection of archiving challenges, not mismanagement.”
