The Liberian Senate raises concern over the failure of State-Owned Enterprises to contribute to the National Budget as required.
By Lincoln G. Peters
Monrovia, Liberia, December 16, 2024 – The Liberian Senate has begun raising critical questions to the Ministry of Finance and Development Planning and the Liberian Revenue Authority, who is protecting State Owned Enterprises (SOEs) in their defiant posture towards the Account Review oversight Policy.
During the budget hearing over the weekend, some members of the Liberian Senate, namely River Gee County Senator Francis S. Dopoh, II, J. Gbleh-Bo Brown, and Senator Alex Taylor of Bomi County, among others, questioned authorities of SOEs for their failures to comply with the LRA and Finance Ministry.
Among the SoEs, the Liberia Petroleum Refining Company, headed by Mr. Amos Tweh, Secretary General of the Unity Party, and the National Port Authority, headed by Mr. Sekou Dukuly, failed to comply with the Account Review Oversight policy.
Responding to the senator’s questions, Liberia Revenue Authority Commissioner General James D. Jallah said that despite being empowered by the Liberian Senate by enacting a law that grants them the viewing rights to all the accounts of SOE, they are yet to exercise such authority.
According to him, they don’t have viewing rights now, but they are working to ensure they exercise them. He added that the LPRC and NPA are the most non-cooperative SoEs that continue to defy them.
“You also gave us the power to garnish the accounts of SoEs. We started the process of garnishing two of the SoEs that we felt were non-cooperative, and we got to the point where we brought the matter before the court, but then the Executive and the Ministry of Justice intervened and later decided that the matter should be discussed internally, among ourselves”, he revealed.
The LRA boss indicated they had a couple of meetings with the SoEs concerned.
Unfortunately, the period and promises they made were not upheld, so we’ve returned to the Ministry of Justice and acknowledged that we want to continue the garnishing process. So, as soon as the Ministry gives us the green light, if they continue to remain defiant, we will go after them, but if they are cooperative and contribute, we will work with them to ensure they comply. We will pursue and exercise the authority given us”, he vowed.
The senator was mostly concerned about why there is no information about SOEs in the 2024 draft budget and why they are contributing so little to the government.
With that concern, they told the Ministry of Finance and the Liberia Revenue Authority to clearly tell what is stopping the SOEs from upholding the Account Reviewing Right Policy.
“Where is the power? Is the power in the Executive Mansion? I will not be on this committee and pretend. The SOEs work for the Liberian people. The Ministry of Finance has the oversight. Why are they not working with you? The Law says 50% of the revenue from NaFAA should contribute, so who is sitting somewhere and taking that power”? Senator Dopoh wondered.
For his part, Maryland County Senator J. GBLEH-BO Brown said that it’s shameful on the part of the NPA and LPRC that the Liberia Immigration Service, whose core responsibility is to take care of the country’s borders are, raising over US$4.7 million for government revenue and they can’t contribute anything meaningful.
“LIS raised US$ 4.7million; Ministry of Labor raised US$8.5, NPA and LPRC can’t bring 3 million. If those people can contribute, the SOEs are getting huge funds. So, we want to know where and who is protecting them.” He concluded.
Also, Bomi County Senator Alex Taylor said that it’s believed that those SOEs are getting or drawing their power from the Executive and so it’s important that they deal with the matter.
But, responding to the Senators’ concern, Deputy Finance Minister Anthony G. Myers said that they reviewed the SOEs’ operation and that the review will be shared with the President and legislature, but NaFAA and others have contributed nothing.
He complained that the Law on the Account Viewing Rights Policy and the Public Financial Management Law regarding SOE accounts need to be looked at properly.
According to him, the PFML Law allows the SOEs to report to the Ministry of Finance on their annual financial performance operation Report and estimates, while in some areas, to the President.
“The PFML says that they should report to the Ministry of Finance on their annual financial performance and estimate. It’s empty. In some areas, to the President, while the PFML to the Minister of Finance shows a change of direction. And so, we need law to give clear direction to improve financial transparency”, he concluded. Editing by Jonathan Browne
