MONROVIA – The General Auditing Commission (GAC) has released its audit report on the National Social Security and Welfare Corporation (NASSCORP) for the fiscal year ending December 31, 2023, calling on the National Legislature to take immediate action to address persistent financial reporting lapses and compliance breaches.
In a formal letter addressed to House Speaker Richard Nagbe Koon and Senate Pro-Tempore Nyonblee Karnga-Lawrence on Monday, October 6, 2025, Auditor General P. Garswa Jackson, Sr., highlighted the seriousness of the findings and urged “urgent consideration and implementation of the recommendations contained within the report.” The audit was conducted under Section 2.1.3 of the GAC Act of 2014, which mandates the Auditor General to examine the accounts and financial operations of all state-owned enterprises (SOEs).
The GAC stated that NASSCORP’s financial statements “present fairly” its financial position, income, and cash flows in accordance with Generally Accepted Accounting Principles (GAAP). However, the report identified a recurring issue: management’s failure to adopt International Financial Reporting Standards (IFRS), mandated by the Government of Liberia for all SOEs.
“The financial statements prepared by Management did not comply with International Financial Reporting Standards (IFRS) as adopted by the Government of Liberia as a reporting framework for State-Owned Enterprises,” the GAC wrote. “The NASSCORP Management is not in compliance with GoL’s financial reporting framework for State-Owned Enterprises. However, our opinion is not modified by the non-compliance of Management.”
While acknowledging that the non-compliance did not materially misstate NASSCORP’s financial condition, the GAC warned that continued use of GAAP undermines the government’s effort to standardize financial reporting across public enterprises. Consistent application of IFRS is essential for transparency, comparability, and accountability, particularly for a major public institution like NASSCORP, which manages pension and injury benefits for thousands of Liberian workers.
NASSCORP reported a net income of US$8.7 million for 2023, down from US$14 million in 2022, mainly due to reduced investment returns and lower employer contributions. Despite the decline, total reserves increased from US$212 million to US$218 million, indicating steady long-term sustainability.
The corporation’s total assets stood at US$248.9 million, up from US$243 million in 2022. Its investment portfolio remains the largest asset, with financial assets valued at US$82.6 million and investment properties totaling US$40.1 million. Property, plant, and equipment grew from US$2.2 million to US$2.5 million, reflecting ongoing facility development across several counties. Total liabilities slightly decreased from US$31.7 million in 2022 to US$30.9 million in 2023, strengthening the net asset position.
Liquidity improved, with net cash from operating activities at US$9 million in 2023, compared to negative US$36.6 million in 2022, due to stricter control of operational expenditures and improved management of pension contributions. Cash flow from investing activities showed cautious recovery, with a balanced portfolio of short-term investments and real estate holdings.
In its management statement, NASSCORP reaffirmed commitment to transparency and sound financial governance. “The management is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework,” the corporation said. “We have no reason to believe that the business will not be a going concern in the year ahead.” Management highlighted the continued expansion of the social security system and pledged to strengthen internal controls, data management, and compliance with international best practices.
The GAC noted that the failure to transition from GAAP to IFRS is a structural deficiency requiring legislative and executive enforcement, warning that non-compliance could limit foreign investment or international accreditation for public financial management standards.
The audit evaluated NASSCORP’s risk management framework, noting vulnerabilities in investment concentration, compliance oversight, and data accuracy. While no major fraud was detected, the report stressed the need for robust internal audit functions and digital monitoring systems. The Auditor General urged the Board of Directors to implement modern risk assessment tools and conduct regular compliance reviews.
Investment income for 2023 showed net appreciation of US$883,972 from unrealized gains, while rental income totaled US$862,449, up from US$823,495 in 2022. Contributions remained central to financial strength, with National Pension Contributions totaling US$50.6 million and Employment Insurance contributions reaching US$12.86 million, bringing total contributions to US$63.45 million. Benefits and related expenses amounted to US$19.18 million.
Expenses included US$54,012 for investment operations, US$7.27 million for general administration, US$10.13 million in staff costs, and US$14.39 million toward corporate social responsibility initiatives and government projects. Financial charges stood at US$3.82 million, including obligations to the Government of Liberia, Afreximbank, Loita Capital Partners, and Treasury Bill trade charges.
NASSCORP’s property, plant, and equipment holdings had a net book value of US$2.53 million, while investment properties totaled US$40.18 million, including commercial, residential, and medical facilities like the Jahmale Diagnostic Center. Financial assets, including shares in Ecobank Transnational, Du Investment Inc., Nimba Rubber, Shelter Afrique, LBDI, and promissory notes, totaled US$82.65 million. Treasury Bills amounted to US$2.1 million, with investment-in-progress valued at US$359,142 and loans receivable at US$244,708. Contributions receivable and prepayments net of impairments stood at US$40.68 million.
Overall, NASSCORP demonstrates disciplined risk management, prudent investment practices, and operational efficiency. The GAC emphasized that with steady contributions, investment income, and rental revenue, the corporation continues to safeguard its assets while fulfilling its mandate to provide retirement and social security benefits.
