Liberia: Hurdles to Liberia’s Enrollment Into IMF Program Cleared

The 2024 recast budget, which stood as a looming stumbling block to Liberia’s enrollment into the External Credit Facility (ECF) of the International Monetary Fund (IMF), has finally been passed by the Senate. The passage of the budget, which took place during the night hours of Monday, September 23, followed the endorsernent of a joint report of the Conference Cornrnittee the same day

The Chairrnan of the Senate’s cornrnittee on Ways, Means, and Budget, Senator Princ Moye, said following the passage that the recast envelope will now enable the Country to enroll into the IMF’s ECF–a precondition set by the global financial body.

The Senate passed the 2O24 Recast Budget by rnaintaining the total allocation of US$738,859,OOO previously subrnitted by the Executive.

Chairrnan Prince K. Moye further indicated that after an assessrnent of SOEs , by the joint cornrnittee and giving the MFDP authority to issue T-Bills and Bonds, it was realized that borrowing frorn cornrnercial banks to raise additional 9.5M will fill the deficit of US$l7 rnillion.

There were also adjustrnents rnade at US$6.6 rnillion based on the conference cornrnittee review.

The passage also took into account rnajor allocations arnounting to US$6,649,788 intended for vital sectors such as Health, Rehabilitation of at-risk youth, Monkey pox , Education, the Liberia Airport Authority, as well as the Liberia Water & Sewer Corporation for water assessrnents in the Southeast, arnong others.

However, less than one hour following the passage, Gbarpolu County Senator and chairman of the Senate committee on Public Account, Amara Mohammed Konneh, wrote a lengthy article, justifying while he refused to vote for last night’s passage.

Senator Konneh said he was outraged and walked out of the chamber because the recast budget lacks transparency and credibility and not in the best interest of the generality of the Liberian people.

“This recast budget lacks transparency and accountability,” the Gbarpolu Senator wrote on his facebook page early Tuesday morning. “How can we oversee the passage of a non-transparent budget when we have just barely resolved an alleged alteration scandal? Are we committed to good governance, or have we abandoned our country?”

The senator also disclosed that the voting process for the passage of the recast budget by the senate was undemocratic; as a result, he does not support the recast budget.

“Last night, chaos erupted during the Liberian Senate’s budget proceedings due to an undemocratic budget vote,” Konneh said. “I want to emphasize that I did not support the recast budget.”

“Although I couldn’t influence the final language of the total Government of Liberia recast budget bill, it’s crucial for me to convey to my constituents and all Liberians that my vote reflects my fundamental beliefs. Along with other Senators, I left the session to demonstrate my dedication to upholding democratic processes, principles, and transparent governance,” he added.

The influential Gbarpolu lawmaker noted that the hardships in the country fall far short of his expectations, including those of my friends who supported change, “the voters in Gbarpolu County who sent me to the Senate and the rest of the country who voted for change.”

Konneh explains vote against Recast FY2024 Budget

“First, I think there is a lack of transparency and credibility in allocating $1.7 million for ‘Other Compensation and Liabilities’. It would benefit the Liberian people to understand who the funds are being paid to and for what specific services. Additionally, providing information on the nature of the liabilities, how they were incurred, and by whom would help to address any concerns.

“Second, the Executive reduced the health budget in the recast, sparking protests from Senators. However, the Legislature’s Conference Committee, set up by the Speaker and the Pro Tempore, has taken steps to reallocate restored health funding to health centers in Bassa, Bong, Nimba, and Montserrado.

“Unfortunately, as of September 5, 2024, hospitals and health centers in Western Liberia — Bomi, Cape Mount, and Gbarpolu Counties — have only received about 10% of their allocated funds. For example, the Emirates Hospital in Gbapolu has only received US$37,000. In contrast, the other 14 health centers in six districts have received only US$50,000 collectively, averaging approximately US$3,571 for nine months of operation.

“This situation is the same in the southeastern region. It is deeply concerning and requires urgent attention to ensure adequate support for these essential healthcare facilities.

“Third, most primary and secondary schools in Liberia have reopened, but they currently face challenges in providing quality education. There is a lack of benches, instructional materials, and, in some cases, teachers. The Executive Branch initially proposed cuts to education funding in the recast, which caused concern in the Senate. However, after protests by Senators, the legislature restored the cuts. Disappointingly, all the “restored” funds were reallocated to tertiary education instead of our teacher training institutes to strengthen their capacity to support the primary and secondary education sectors. It’s important to note that allocating “restored” funds to specific colleges has raised questions also.

“Finally, I believe it’s essential to consider the impact of the proposed cuts on the agriculture, energy, and environment sectors. These sectors play a critical role in food security and fueling the economy, and cutting their funding could have negative consequences. For example, defunding the energy sector could limit the ability of organizations like the Liberia Electricity Corporation and the Rural and Renewable Energy Agency to provide stable and affordable electricity, which is essential for supporting businesses and households and increasing domestic revenues. This could lead to increased challenges for businesses and families, potentially resulting in a greater reliance on imported foods and generators that pollute the environment. It’s important to consider the potential long-term effects of these proposed cuts carefully.

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“These issues require our immediate attention. Without adequate access to essential medicines, more lives are at risk. Many children cannot attend public schools due to a lack of resources, and their families cannot afford private education. Addressing these challenges and ensuring inclusive and equitable development for all our constituents is essential.

“Nine months have passed, and the government has yet to fully emerge from hibernation. The people are increasingly expressing a sense of subdued disappointment and frustration. I hope fellow Senators who think I am too critical and my friends from the “Rescue” group can read this with an objective perspective.”

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