MONROVIA, LIBERIA — The Ministry of Finance and Development Planning (MFDP), headed by Minister Augustine Kpehe Ngafuan and responsible for overseeing national fiscal management and public financial administration, spent US$3,367,281 beyond its approved annual budget during the 2018/2019 fiscal period without obtaining legislative approval, according to an adverse audit opinion issued by the Office of the Auditor General, headed by Auditor General P. Garswa Jackson.
The finding raises serious questions about compliance with the country’s budgetary authorization framework and the extent to which government institutions observe legislative controls over public spending.
In an audit report dated March 19, 2026, covering the financial statements of the Ministry for the period July 1, 2018, to June 30, 2019, the Auditor General identified expenditure exceeding the approved annual budget by more than US$3.36 million without authorization from the National Legislature.
The Auditor General classified the matter as sufficiently serious to contribute to an adverse opinion on the Ministry’s financial statements, concluding that the financial records did not fairly present, in all material respects, the Ministry’s financial position and performance in accordance with the 2017 International Public Sector Accounting Standards (IPSAS) Cash Basis of Accounting.
The report explained that the unauthorized excess expenditure had a pervasive impact on the financial statements, resulting in material misstatements and raising concerns about the accuracy and reliability of the Ministry’s reported financial position and performance for the period under review.
The finding is particularly important because the national budget is not merely an administrative spending plan. It represents the financial authorization granted through the legislative process, establishing the limits within which government institutions are expected to operate.
When a ministry spends beyond its approved allocation without securing the required legislative authorization, it raises fundamental questions about fiscal discipline, institutional responsibility and respect for the Legislature’s constitutional role in approving public expenditure.
The Ministry of Finance occupies an especially important position in this arrangement. As the institution responsible for national financial management, its own compliance with budgetary requirements carries implications for the credibility of the wider public financial management system.
The Auditor General also identified a US$2,254,362 discrepancy between the final approved budget and the actual amounts reported in the Fiscal Outturn Report.
According to the report, management failed to provide evidence of an approved recast budget by the National Legislature comprehensively documenting the adjusted increase in the Ministry’s budget.
The absence of such documentation left the audit team unable to establish that the reported budget adjustments had received the necessary legislative approval.
Although the two financial findings concern different aspects of budget execution and reporting, together they raise concerns about whether the Ministry’s expenditure was adequately authorized and accurately reflected in its financial records.
The report does not establish that the entire excess expenditure was stolen or misappropriated. Rather, it identifies unauthorized spending and weaknesses in financial reporting that undermine the reliability of the Ministry’s accounts and the assurance that public resources were managed within approved limits.
The timing of the audit report also deserves attention. Although issued on March 19, 2026, the findings relate to a fiscal period that ended on June 30, 2019. The distinction is important because the audit findings concern historical financial management and should not automatically be attributed to officials currently serving at the Ministry.
Nevertheless, the findings deserve serious institutional attention because public financial accountability requires more than preparing budgets and announcing revenue achievements. It also requires ensuring that expenditure follows approved procedures, financial adjustments are properly authorized and public records accurately reflect how taxpayers’ money is spent.
The adverse opinion therefore presents a difficult accountability question for Liberia’s public financial management system: If the Ministry responsible for overseeing the country’s finances could exceed its approved budget by millions of dollars without legislative authorization, what level of compliance and financial discipline should citizens expect from other government institutions?
The report places renewed importance on legislative oversight, transparent budget execution and effective internal financial controls. Without these safeguards, the authority of the national budget risks being weakened, while public confidence in government financial administration remains exposed to serious questions.
