The National Housing Authority (NHA) of Liberia is facing intense scrutiny following the release of an audit report detailing significant deficiencies in financial management for the fiscal year ending June 30, 2017.
An audit conducted by the General Auditing Commission (GAC) has revealed significant financial management deficiencies at the National Housing Authority (NHA) of Liberia for the fiscal year ending June 30, 2017. The report implicates the authority’s former management, led by Managing Director, Prince A. Wreh. Mr. Wreh was recently appointed by President Joseph Nyuma Boakai and he currently serves as the Executive Chairman of the Liberia Special Economic Zones Authority.
The audit, which covers the Period July 1, 2016 to June 30, 2017, highlighted inconsistencies in financial statements, including discrepancies in reported appropriation amounts and payroll figures.
The audit report, for instance, showed that the total authorized appropriation was listed as $1,757,000, but the notes indicated amounts of $1,758,046.48 and $1,756,000. Additionally, discrepancies were found in reported wages, salaries, and employee benefits that did not match the figures in the notes.
Further critical findings from the audit encompass unsupported revenue generation, failure to remit national social security contributions, and a significant lack of a cash book or general ledger for the assessed fiscal year. The NHA’s failure to perform bank reconciliations led to a considerable variance of more than $6 million between reported cash outflows and actual figures.
The report also pointed out the absence of essential documentation, including expenditure records and contracts, which the reports indicated are vital for the accurate representation of the NHA’s financial activities. Moreover, the lack of a functional audit committee and inadequate asset management policies were identified as significant risks that undermined the authority’s financial integrity.
The former NHA leadership, headed by Wreh, is yet to react to the audit report. Wreh didn’t answer calls placed to him by this writer yesterday and today. He did not also respond to a Whatsapp message requesting his reaction to the audit report.
However, GAC sources indicate that the then NHA management admitted to the errors and discrepancies raised in the audit, pledging to implement corrective measures. They committed to conducting a thorough review of their financial statements and reconciling all identified discrepancies moving forward.
The Auditor General in his report emphasized the importance of ongoing oversight to ensure the implementation of the recommendations, underscoring that accurate and reliable financial reporting is essential to maintaining public trust and effectively managing national resources.
