Liberia’s fragile tax and trade systems came under intense scrutiny this week as policymakers, statisticians, auditors, and international experts gathered in Monrovia for a high-level workshop on Illicit Financial Flows (IFFs).
The three-day Anti-IFFs Policy Tracker Piloting Workshop, held from September 1–3, was spearheaded by the Tax Justice Network Africa (TJNA) in collaboration with the African Union’s Economic Development, Trade, Tourism Industry, and Minerals Department (AU-ETTIM) and the African Tax Administration Forum (ATAF).
With Africa losing an estimated $88 billion annually to IFFs, the workshop sought to measure Liberia’s progress in curbing capital flight and to expose the systemic weaknesses enabling illicit outflows.
Desterious Shilabukha, Domestic Resource Mobilization Advisor at the African Union, stressed that Liberia’s tax administration reforms must move beyond paper to actual implementation.
“At the AU we have two strategies — the AU Tax Strategy for Africa and the Carbon-Induced Financial Flow Strategy,” Shilabukha explained. “These strategies were rolled out to member states and approved in May in Lusaka. Alongside them, we developed implementation matrices to guide reforms.”
Shilabukha revealed that Liberia had already undergone a Tax Administration Diagnostic Assessment Tool (TADAT) review in late 2024, led by the IMF. He said the next step is to act on its findings.
“One of the critical phases of TADAT is addressing the gaps identified during the assessment,” he noted. “We need to develop a monitoring and evaluation framework to track reforms. That is my request to Liberia — to take this process seriously so that weaknesses in the tax system are not only highlighted but corrected.”
The Liberia Institute of Statistics and Geo-Information Services (LISGIS) warned that weak and fragmented data systems were undermining Liberia’s ability to detect financial leakages.
“You cannot conduct adequate monitoring and evaluation without the integration of data from different sources,” said Richard Ngafuan, Director General of LISGIS.
Citing Liberia’s trade statistics, he noted that discrepancies between exports declared in Liberia and imports recorded abroad remain alarming.
“For instance, how do you track mis-invoicing when it comes to trade? We are aware of our exports, but what is being measured as the imports from Liberia in other countries? Are they of the same value?” he asked.
Ngafuan argued that such gaps in trade analysis often serve as red flags for illicit flows.
“Illicit financial flow drains a nation,” he warned. “The money that leaves through illicit means should be used for the construction of roads, the building of schools, and the establishment of clinics in remote parts of Liberia. This is not just a technical issue — it is a nationalistic discussion meant to transform our country.”
He also pointed to past work with GIABA, the West African anti-money laundering body, as proof that Liberia needs more robust inter-agency coordination to stop illicit flows.
“Data should be the beginning and end of whatever discussion we are having,” Ngafuan insisted. “If we can properly account for our resources, Liberia will indeed have sufficient means to transform the lives of our people.”
The General Auditing Commission (GAC) joined the call for urgent reforms, warning that Liberia’s current system leaves the country vulnerable.
“When we received the communication, we were finalizing the consolidated financial statement,” said G. Cecil Dole, Deputy Director General for State-Owned Enterprises on Specialized Audits, speaking on behalf of the Auditor General. “The Auditor General asked me to represent him because the fight against corruption is dear to him.”
Dole emphasized that beyond discussion, Liberia must show proof of commitment.
“It is very important we discuss these issues — but more importantly, that we act on them,” he said. “You can be assured of our participation, and we want to state here our full commitment to the fight against corruption.”
Experts agreed that Liberia’s weak tax base, porous trade monitoring, and fragmented data systems create loopholes that criminals and corrupt actors exploit. Unless addressed, these gaps will continue to rob the country of development resources.
“Illicit flows thrive where systems are weak,” one participant observed. “Liberia must strengthen tax administration, improve trade data integrity, and ensure that auditing and oversight agencies have the independence and resources to act.”
As the workshop closed, AU officials pledged to continue providing technical support to Liberia, while local institutions committed to stronger collaboration.
