Liberia: Government’s U.S.$15m Off-Budget Expenditure in Nine Months Raises Eyebrow

Monrovia — At the inception of the 55th National Legislature of Liberia, a high-profile government official, speaking on condition of anonymity to a team of reporters said the national budget has historically served as a vehicle for top officials in both the executive and legislative branches to enrich themselves.

The official stated for corruption to be effectively addressed, Liberia’s fiscal budget must be managed in a way that benefits the broader public rather than just the few with access to it. The official argued if the Boakai-Koung administration is serious about combating graft; it must prioritize proper budget management.

However, recent off-budget expenditures reported by the Ministry of Finance and Development Planning (MFPA) suggest otherwise, revealing several controversial expenses incurred by the UP-led government from January to August 2024.

Expenditure Breakdown

Among the expenditures reported, the Liberian government allocated US$2,307,609 to “unexplained miscellaneous” expenses and US$2.5 million for covert operations through the National Security Agency (NSA). The House of Representatives spent US$1.5 million on special sessions, while the Senate expended US$812,612 for similar purposes.

Further expenditures included US$65,000 by the Ministry of State for the funeral of former Liberia Revenue Authority Commissioner General Thomas Doe Nah and US$191,679 in contributions to the Muslim community. Additional spending by the Ministry of State included US$30,880 for the funeral of Associate Justice Joseph Nagbe, US$250,000 for completing the VIP lounge at Roberts International Airport, US$28,000 for operational expenses for the Vice President’s Office, and US$25,000 for the funeral of James Quiqui.

Other notable expenditures comprised US$41,667 by the Public Procurement and Concessions Commission (PPCC) for executing its mandate, US$61,062 for the Liberia Drug Enforcement Agency’s operational expenses, US$1,123,000 for purchasing armored and unarmored vehicles for the President and Vice President, and US$250,000 for recovery operations by the National Disaster Management Agency for miners trapped in Rivercess County.

The Environmental Protection Agency (EPA) spent US$40,000 on the Miss Earth 2024 beauty pageant. Additionally, the Ministry of State reported US$30,000 for the funeral of the late Hon. Othello Gongar, US$10,000 for expenses related to Dr. Robtel N. Pailey’s role as the national orator for Liberia’s 2024 Independence Day celebrations, and US$60,000 for the President’s engagements with various community leaders.

The Ministry of Foreign Affairs allocated US$500,000 for Independence Day celebrations, US$40,000 for the Mano River Union Conference, and US$100,000 for moving costs for Foreign Service employees.

Additionally, US$453,000 was disbursed to the Liberia Extractive Industries Transparency Initiative (LEITI) for report production, US$291,552 paid by the Ministry of Justice for legal services in the SOLWAY Mining Liberia arbitration, US$225,000 for the Liberia Refugee Repatriation and Resettlement Commission’s drug abuse prevention program, and US$125,000 used by FTI for repair and maintenance.

Greeted by criticisms

This report has sparked outrage among many lawmakers on Capitol Hill, who describe the situation as rampant corruption and questionable appropriations, especially as the Legislature debates the recast budget. Rep. Musa Hassan Bility (District #7, Nimba County) expressed his dismay on Facebook, calling the recast budget “an instrument of fraud and money laundering,” vowing to resist its passage “by any means necessary.”

On social media, many liberians have been weighing in on the news. Robert Clarke, commenting said: :

“The past and current governments are implicated. Unbudgeted expenditure on funerals, religious programs, legislative sittings, etc. This, too, is Liberia.”

Miata Dahn added: “Liberians will soon start leaving their own country to other African countries for greener pastures. Hunger is going to declare as endemic. The hardships will bring strange diseases. Already, the people have started to eat strange species from the ocean. So, what is there for pregnant women, disabled people, infant’ morality, seniors and the environment?”

“No wonder why credible investors cannot come to do business here in Liberia because of the corrupt manner in which the Liberian government carries on. This is too much and we need a Kenyan version of Gen Z to put a complete stop to these messes that are causing increased poverty resulting in the lack of essential medical drugs and operational equipment at all public hospitals,” Michael T. Biddle also stated.

Call for Reform

Amid the revelations, House Speaker J. Fonati Koffa has called for significant changes to Liberia’s Public Financial Management Law. Addressing the Plenary of the House of Representatives last week, Speaker Koffa stated that the 55th Legislature has inherited a flawed budget process that urgently requires reform.

He stated, “While we support this recast, we must commit to the Ways, Means, and Finance Committee that before submitting the next budget, we will open up the process further. We need to redefine how the budget is received, transmitted, and executed, ensuring accountability from the executive branch. Violations noted in this budget recast cannot be accepted. Off-budget spending without adherence to the governing laws is illegal and unacceptable.”

“While we support this recast, we must prevail upon the Ways, Means and Finance that before the submission of the next budget, and now that we have opened up the process, with even another resource committee to design on the way forward on the following: How the budget is received, how the budget is transmitted, the accountability of the executive branch in the budget execution, the violation of laws noted in this budget recast cannot be accepted. Off-budget spending without the requisite adherence to the laws governing off-budget spending is illegal and unlawful.”

Speaker Koffa emphasized the constitutional responsibility lawmakers have to manage public funds, asserting that the current PFM law undermines legislative control by granting excessive power to the Minister of Finance. He declared, “The 2025 budget cannot pass without adjustments to the PFM law that restores complete control to us over the budget process. We must not hold our country hostage to a system we did not create; we are responsible for reforming it.”

The calls for reform echo the urgent need for accountability and transparency in Liberia’s financial management, as lawmakers grapple with the challenges of addressing corruption and ensuring the national budget serves the interests of all Liberians.

Off-Budget Expenditures Soar as Major Sectors Face Cuts in Recast Budget

While the government spent US$15.6 million off the approved budget, significant cuts were made to appropriations for major sectors in the recast budget submitted by the Ministry of Finance and Development Planning (MFDP) to the Legislature.

Budget Cuts by Sector

Liberia Agency for Community Empowerment (LACE): Funding reduced by US$10.051 million, dropping their budget to US$4.065 million from the original US$14.116 million. Liberia Electricity Corporation: Budget cut by US$45.322 million, reducing their total to US$44.462 million, down from US$89.785 million.

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Ministry of Agriculture: A reduction of US$2.016 million brings their budget down to US$3.704 million from US$5.721 million. Ministry of Health: Budget cut by US$1.591 million, decreasing it to US$60.720 million from US$62.311 million.

University of Liberia: Funding reduced by US$1 million, now at US$32.481 million, down from US$33.481 million. Ministry of Education: A deduction of US$913,348 bringing their budget to US$47.585 million, down from US$48.498 million.

Increases for Certain Agencies

Conversely, several agencies received increases including the Legislature which initially budgeted at US$53.379 million, but got an additional US$4.538 million bringing their total to US$57.915 million.

Ministry of State for Presidential Affairs: received an increase of US$1.336 million, raising their budget to US$12.555 million from US$10.918 million.

Vice President’s Office: Additional US$328,000 added to their US$3.386 million, now totaling US$3.714 million, Ministry of Finance and Development Planning: Increased by US$4.331 million, bringing their budget to US$133.845 million from US$129.513 million.

National Security Agency: Received an increase of US$2.5 million now at US$11.989 million, up from US$9.489 million.

Executive Protective Service (EPS) Additional US$1.248 million raises their budget to US$9.637 million from US$8.388 million.

Ministry of Public Works: Allocated an additional US$4.075 million, increasing their budget to US$39.621 million from US$35.545 million.

These adjustments highlight the ongoing challenges in balancing the national budget, as key sectors face significant reductions while certain agencies see their funding increase.

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