Integrity institution Center for Transparency and Accountability in Liberia calls on President Boakai to take drastic action against Minister of Commerce and Industry Amin Modad, for purchasing a vehicle worth US$150,000.
By Lewis S. Teh
Monrovia, Liberia, Liberia, October 4, 2024 – As pressure mounts against the Minister of Commerce and Industry Amin Modad, for purchasing vehicle worth US$15,000, Center for Transparency and Accountability in Liberia or CENTAL, is urging President Joseph N. Boakai to take administrative actions against Minister Modad for what the CSO terms as abuse of state resources.
‘We call on President Boakai to take administrative actions against Minister Modad for violation of the budget law of 2024, and the abuse of state resources”, CENTAL urges.
Program Director Attorney Gerald Yeakula made the call here Thursday, October 3, 2024 at the organization office in Sinkor, Monrovia during a news conference.
“In view of the above, CENTAL urges President Boakai to commission an independent investigation into circumstances leading to abuse of resources by Minister Amin Modad with a view to further strengthen processes around management and use of fees generated through customs services.”
According to Attorney Yeakula, with little or no administrative actions, corruption tends to undermine transparency and accountability in government likewise President Boakai’s anti-corruption initiatives and commitment to the rule of law pillar of his ARREST Agenda for Inclusive Development (AAID).
It may be recalled the ministry of commerce and the Liberia revenue authority or LRA provided two conflicting information about the vehicle purchased, thereby creating huge public outcry.
But the LRA clarified that the actual fund approved was US$96,000, not $150,000 that was meant for capacity building of the Ministry, specifically for purchase of vehicles to be used for trade-related activities.
The LRA further clarified that the funding was made possible through customs service fee collected by MedTech pursuant to Section 1822 of the Liberia Revenue Code as amended.
But reading a three-page press statement, Atty. Gerald Yeakula says CENTAL wonders why funds meant for capacity building in terms of trade was used entirely to purchase a luxury vehicle for Minister Modad.
CENTAL believes that such funds should have been used to build the capacity of relevant departments at the Ministry.
According to him, the said purchase violates Section 8(n) of the 2024 Budget Law which states that “All procurement of vehicles in this year 2024, except for the President, Vice President, Speaker, Pro-Tempore, and Deputy Speaker and the Chief Justice of Liberia, shall not exceed US$ 45,000 at duty paid.”
These measures shall apply to all state-owned enterprises. CENTAL, therefore, believes that the expenditure by the Minister does not only violate the law but amounts to an abuse of state resources that could be used to better the lives of the Liberian people, he notes.
Meanwhile, he says CENTAL is also concerned about reports that have emerged from the period January to August 2024, where the Government of Liberia through the Ministry of Finance and Development Planning (MFDP) was engaged in off-budget expenditures totaling US$15 million.
“This action on the part of the Executive branch of government specifically the MFDP violates the public financial management (PFM) law of Liberia which provides for spending according to approved budget lines.”
Atty. Yeakula argues the PFM law provides that expenditures exceeding appropriations are only allowed under ‘exceptional circumstances’ and that even in such cases, the MFDP is required to submit a statement of expenditures in excess to the Legislature and, following review by the Legislature’s Public Accounts Committee, the Legislature decides by Resolution on whether to allow the excess expenditure (See Sections 8 and 24).
He says mindful that certain spending needs might arise, Section 8 of the PFM Law establishes a Contingency Fund (CF) under the auspices of the MFDP but does not give it a blanket discretion regarding use of the funds.
Accordingly, he adds that Section 8(1) provides a three-part test for expenditures from the contingency fund: i) expenditures must meet an urgent and unforeseen need, ii) Payments for such need cannot be postponed until the passage of a supplementary budget or the next annual National Budget, and iii) postponement of such payment would significantly affect the public interest.
He further quotes Section 8(3)(c) which he says provides that contingency fund expenditures are not to exceed 2 percent of annual domestic revenue as estimated in the budget.
“Ladies and gentlemen of the press, given that the annual domestic revenue estimated in the 2024 budget is US$696.43 million, only US$13.92 million and not US$15 million could have been used under contingency spending. Even so, any such expenditures must meet the criteria listed above”, he maintains.
The CENTAL program director says the Anti-Corruption organization anticipates a detailed explanation as to how these expenditures comply with criteria laid down by law.
“We note these acts of spending outside the approved budget lines by the MFDP are fast becoming a routine passed on from the erstwhile administration of former President George M. Weah’s Coalition for Democratic Change (CDC) to the current administration.”
Yeakula continues that CENTAL is deeply concerned over the fact that both past and present governments are having a notoriety for blatantly violating the budget laws in broad daylight with little or no reprimand for those culpable.
CENTAL recommends a comprehensive report on the need for such expenditures and further calls on President Boakai to take appropriate actions against MFDP officials for spending above limits prescribed by law. Editing by Jonathan Browne
