MONROVIA – The General Auditing Commission (GAC) has flagged significant financial irregularities in Liberia’s 2024 government spending, revealing unauthorized expenditures and missing documentation in the Consolidated Funds Account. Auditor General P. Garswa Jackson’s report for the fiscal year January 1 to December 31, 2024, highlights budget overruns totaling US$2.8 million and insufficient supporting records, raising concerns about transparency and compliance with the Public Financial Management (PFM) Act.
The audit showed that management facilitated disbursements exceeding approved appropriations in key entities, including the Ministry of Public Works, Liberia Airport Authority, Ministry of Labor, and the Bureau of Concessions. Excess spending ranged from 0.47 percent in the Ministry of Labor to nearly 30 percent in the Bureau of Concessions, without approved supplementary budgets or authorization from the National Legislature.
GAC warned that such unauthorized spending may lead to misappropriation of public funds, non-compliance with Section 24(1-2) of the PFM Act of 2009 as amended, and under-disbursement to other government entities. The commission recommended that management account for all excess expenditures, ensure future budget approvals are secured, reconcile quarterly budgets with actual expenditure, and maintain adequate records for audit purposes.
Management responded, citing PFM Regulation 8.1, 8.2, and 8.3, which allow budget reallocations within government agencies under certain conditions to meet urgent operational needs. Officials stated that excess expenditures were primarily for the Ministry of Public Works’ National Road Fund and other unforeseen circumstances, asserting that all supporting authorizations were maintained.
However, Auditor General Jackson maintained that management’s response did not address the core issues. GAC emphasized that no evidence was provided showing that excess expenditures were approved by the National Legislature or that a Statement of Excess Expenditure was submitted as required under the PFM Act. The Auditor General reaffirmed that management is in breach of financial discipline under Regulation A.20 of the PFM Act.
The audit also found that US$2,850,035.38 in payments were made without adequate supporting documentation, including receipts, quotations, contracts, expenditure reports, delivery notes, and job completion certificates. GAC warned that this lack of documentation increases the risk of payments for undelivered goods or unperformed services and may facilitate fraudulent financial management.
GAC recommended that management fully account for undocumented expenditures, ensure all future transactions are properly documented, and implement an electronic document management system to archive and maintain records for future review. Auditor General Jackson said the commission will follow up on the implementation of these recommendations in subsequent audits to ensure compliance and accountability.
