MONROVIA – The General Auditing Commission (GAC), through Auditor General P. Garswa Jackson, has released its latest report detailing major financial irregularities in Liberia’s 2024 government spending, raising serious questions about fiscal discipline and accountability in the public sector.
Covering the fiscal year from January 1 to December 31, 2024, the audit revealed budget overruns totaling US$2.8 million and significant gaps in supporting documentation, in violation of the Public Financial Management (PFM) Act. More troubling, the report shows widespread tax delinquencies among State-Owned Enterprises (SOEs), undermining revenue collection at a time when government finances remain strained.
According to the GAC’s findings, the Liberia Revenue Authority (LRA) assessed personal income tax liabilities of US$10.16 million for eleven SOEs during the period under review. However, only US$5.67 million was remitted, leaving a shortfall of nearly US$4.5 million. The audit also noted that just one SOE, the Liberia Petroleum Refining Company (LPRC), was assessed corporate income tax of US$575,047, of which only US$246,983 was paid.
Equally alarming is the finding that out of eleven SOEs, only the Liberia Water and Sewer Corporation (LWSC) and the Liberia Electricity Corporation (LEC) were assessed for Goods and Services Tax (GST), totaling US$1.81 million. Yet, only LWSC made a partial remittance of US$14,707, leaving more than US$1.79 million unpaid.
The audit further observed that there was no evidence of independent tax audits conducted by the LRA to verify the completeness and accuracy of tax liabilities across the SOEs. This gap in enforcement, the GAC warned, poses risks of revenue misappropriation and weakens government’s ability to deliver on its mandates.
“The failure to remit collected government revenue may impair the achievement of GoL’s objectives and lead to misappropriation and misapplication of funds,” the GAC cautioned in its management letter. The Commission recommended that the LRA enforce stricter collection measures, institute independent audits, and establish payment plans for delinquent SOEs.
In its response, the LRA acknowledged the findings, noting that some SOEs had been referred to court through its Legal Department, but that enforcement actions produced “little result” after interventions by the Ministry of Justice. The LRA attributed its challenges to resource constraints, saying that with better logistical support, compliance and monitoring could be strengthened.
The Auditor General reaffirmed the Commission’s position, emphasizing that it would follow up on implementation of recommendations in subsequent audits.
The report adds to mounting public pressure on government institutions to improve transparency in the management of state resources, especially amid ongoing debates about budget shortfalls and spending priorities under the current administration.
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