The Ministry of Finance and Development Planning (MFDP) is facing scrutiny after the General Auditing Commission (GAC) flagged US$2.8 million in budget irregularities in its recently released audit of the Government of Liberia’s Consolidated Funds Account for the fiscal year January 1 to December 31, 2024.
While the report recognizes substantial improvements in financial management under the current administration, it raises serious questions about overspending and missing documentation.
The GAC audit revealed that several government entities, including the Ministry of Public Works, Liberia Airport Authority, Ministry of Labor, and the Bureau of Concessions, spent beyond their approved budget allocations, totaling US$2.81 million in excess expenditures.
The Ministry of Public Works, for instance, spent US$40.34 million against a budget of US$38.01 million, exceeding the allocation by US$2.33 million.
The Liberia Airport Authority overspent by US$98,910, the Ministry of Labor by US$8,390, while the Bureau of Concessions exceeded its budget by US$373,620, nearly 30 percent above its allocation.
The report also highlighted that payments amounting to US$2.8 million were made without adequate supporting documentation, including receipts, quotations, contracts, and delivery notes.
The GAC warned that such overspending and undocumented payments could undermine financial discipline, increase the risk of misappropriation, and compromise the effectiveness of government programs.
Responding to the report, the MFDP stressed that no funds are missing or misappropriated, attributing the issue primarily to archiving and document management challenges. “All transactions were executed with proper authorization and supporting records,” the ministry said in a statement. “However, some documentation could not be immediately located due to limitations in the inherited filing and document storage system.”
The ministry added that it has introduced a temporary manual scanning system for all transaction documents starting in 2025 and is investing in a new Electronic Document Management System (EDMS), which will fully automate document storage and retrieval within a few months.
On the issue of excess expenditure, the MFDP clarified that most reallocations were within the 20 percent threshold allowed under the Public Financial Management (PFM) Act and Regulations, with the exception of the Bureau of National Concessions, which exceeded its allocation by US$373,620.
According to the ministry, these reallocations were necessary to address urgent operational needs, including the National Road Fund managed by the Ministry of Public Works, and to respond to unforeseen national circumstances. “Excess expenditure over appropriation does not necessarily imply wrongdoing,” the MFDP noted. “Situations often arise where urgent or unforeseen expenditures must be addressed, such as emergencies or by-elections.”
Despite the MFDP’s explanations, the Auditor General maintained the GAC’s findings, emphasizing that management did not provide evidence that the excess expenditures were approved by the National Legislature or documented in an official Statement of Excess Expenditure, as required under Section 24(1-2) of the PFM Act of 2009, as amended. “We maintain our findings and recommendations and will follow up on implementation in subsequent audits,” the Auditor General’s report reads.
While raising these concerns, the audit also acknowledges significant improvements in Liberia’s financial management. Compared to 2023, the 2024 audit shows that financial statements were fairly presented in all material respects, bank reconciliations improved from 473 unresolved accounts and 37 transitory accounts in 2023 to 95 percent reconciled in 2024, and previously undisclosed restricted cash balances were fully reported.
Moreover, transactions recorded under the Central Bank of Liberia Sundry Account, totaling US$18.97 million in 2023 without supporting schedules, were fully reconciled and documented in 2024.
The MFDP emphasized that the 2024 audit reflects progress in budget discipline, internal controls, transparency, reconciliation, and financial reporting, even as it addresses challenges such as documentation retrieval. “The audit confirms that the government has made meaningful reforms,” the ministry said. “All transactions were properly executed, and the minor gaps identified relate to archiving rather than mismanagement or misappropriation.”
In conclusion, the 2024 GAC audit report places MFDP under scrutiny over US$2.8 million in budget irregularities, while simultaneously highlighting progress in Liberia’s public financial management.
The ministry insists that ongoing reforms, including the EDMS, will further strengthen oversight, ensure compliance with legal requirements, and enhance accountability in government spending.
