The report states that auditors were unable to verify 81 of those farms due to insufficient information provided by District Agriculture Officers, County Agriculture Coordinators, and Regional Agriculture Coordinators.
Monrovia – An audit by the General Auditing Commission (GAC) has uncovered widespread financial mismanagement and possible misappropriation in the Ministry of Agriculture’s management of the Liberia Emergency Food Production Program, also known as the Emergency Rice Production Offensive (ERPO).
By Selma Lomax, [email protected]
The project was funded by the African Development Bank (AfDB) through a combination of loans and grants totaling US$5,288,529.59 in 2023.
The audit, which covered fiscal years 2023 and 2024, has been submitted to both the National Legislature and the African Development Bank. Its findings raise serious concerns about transparency, accountability, and the proper use of public and donor funds.
During field visits to Bong, Gbarpolu, and Margibi counties, GAC auditors attempted to verify 114 farms listed in the project database. However, the report states that auditors were unable to verify 81 of those farms due to insufficient information provided by District Agriculture Officers, County Agriculture Coordinators, and Regional Agriculture Coordinators.
“The GAC could not verify 81 out of a sample of 114 farms listed on the project database due to the limited information available about the locations of the farms from District Agriculture Officers, County Agriculture Coordinators, and Regional Agriculture Coordinators,” the report noted.
As a result, the existence of the farm lands and the implementation of the approved farming activities could not be confirmed.
The audit also found that US$633,000.00 was disbursed to lead farmers for onward distribution to sub-farmers. However, there was no documentation or evidence showing that the money reached the intended sub-farmers or that the farms existed.
“The GAC obtained no evidence of subsequent remittance of funding to sub-farmers and locations of the sub-farms,” the report stated. “As a result, the GAC could not validate the completeness and accuracy of remittances of approved funding to sub-farmers nor could the GAC validate the existence of approved farming activities at most sub-farms.”
The auditors further noted that the Ministry disbursed the initial 50 percent of funds to farmers without first conducting the required comprehensive assessment of their capacity or verifying whether they had access to the land size they had declared. The report stated:
“There was no evidence of comprehensive and adequate pre-assessment of farmers’ capacity and control over the required farm land size declared by farmers as required, before disbursement of the initial 50% of funding.”
Additionally, when it came time to release the second installment of 30 percent of funding, farmers were still unable to demonstrate that they had planted rice on the initial hectares of land as claimed. Despite this, the Ministry proceeded with the disbursement of funds based on what the GAC described as unexplained management discretion.
“Assessment performed before the subsequent disbursement of the 30% funding to farmers revealed that farmers did not display cultivation of rice on the initial hectares of land declared. As a result, Management discretionarily facilitated disbursement of the required 30% funding. The basis of the disbursement was not established by the GAC,” the report added.
The audit also revealed procurement and documentation irregularities. Expenditures totaling US$168,169.00 in FY 2023 and US$22,838.00 in FY 2024 lacked basic supporting documents such as payment vouchers, invoices, and delivery notes.
Further analysis by the GAC showed significant price inflation in items purchased under the project compared to independent market prices. In 2023, the Ministry procured three reaper harvesters for US$58,500. However, the GAC’s independent market survey showed the same items should have cost only US$10,000, a difference of US$48,500.
In another instance, in 2024 the Ministry purchased 5,500 units of NPK 15-15-15 fertilizer at US$65 each, totaling US$357,500. The GAC’s market survey priced the same quantity at US$42 per unit, amounting to US$231,000, reflecting a difference of US$126,500.
In terms of physical assets, the GAC reported that fixed assets valued at US$82,430.00 could not be found during a verification exercise. These assets were also not recorded in the project’s Fixed Assets Register. Additionally, there was no evidence of the existence of agricultural equipment such as harvesters valued at US$36,300.00 and power saws worth US$6,800.00, which were reportedly purchased for use by beneficiary farmers.
A photo included in the audit showed a dilapidated harvester parked at the Ministry of Agriculture’s Monrovia office, further highlighting the issue of poor asset management.
The audit also pointed to major weaknesses in inventory control. There was no manual or automated inventory management system to monitor agricultural inputs valued at US$760,000.00 in FY 2023 and US$508,460.00 in FY 2024. The absence of such a system meant there was no clear tracking of items ordered, received, distributed, or remaining in stock.
In FY 2023, US$240,000.00 was disbursed for the purchase of upland rice agri-inputs. However, the GAC found no evidence of their receipt, storage, or distribution. Similarly, in FY 2024, the Ministry purchased paddy rice worth US$30,000.00 from local farmers, transferring the amount to the MOA–Liberia Feed Yourself Agenda Paddy Rice account. Yet again, the GAC found no documentation showing that the rice was stored or distributed.
The audit findings paint a troubling picture of how public and donor funds were handled under the ERPO project. The GAC concluded that there were serious lapses in financial management, procurement, and accountability.
The report has been officially submitted to the National Legislature and the African Development Bank for appropriate action. It calls for further investigation and corrective measures to ensure proper utilization of donor support and safeguard the future of food security interventions in Liberia.
