Capitol Hill, Monrovia – An Investigation by FrontPage Africa has uncovered that the 55th Legislature has refused to listen to complaints by the chairpersons of the Public Accounts Committee of the House and the Senate of a possible alteration of the approved budget for fiscal year 2024.
The budget was approved by the Legislature in May in the tune of US$738,859,827, an increase by 6.7 percent of the version submitted by the Executive through the Ministry of Finance and Development Planning.
But since its passage and printing into handbill, there have been complaints of alterations. Rep. Clarence Gahr (District #5, Margibi County), chairperson of the House Public Accounts Committee first drew his colleague’s attention to the situation.
Rep. Gahr’s communication to the plenary revealed that the executive allegedly ignored amendments made by the Legislature during the final review stages of the budget. He cautioned that without stringent measures, this could lead to further violations and tampering with laws passed by the Legislature.
In response, members of the House directed their Leadership to invite the Ministry of Finance and Development Planning to address claims of alterations in the 2024 National Budget Law.
FrontPageAfrica has seen a communication from Gahr’s counterpart in the Liberian Senate, Amara Konneh and his committee members.
Unlike Gahr’s claims which were mainly concerned about the change in terminologies, Senator Konneh and team flagged out significant discrepancies (in appropriation) between the Legislature’s approved National Budget as forwarded to the executive, and the Detailed National Budget as printed.
The Senate Public Accounts Committee pointed out that the figures presented in the printed Budget Act on May 8, 2024, differ markedly from those enacted by the National Legislature on April 30, 2024, and the figures printed in the detailed budget book also vary significantly from the enacted appropriations and the Budget Act.
“These alterations raise concerns that the Executive Branch may have disregarded the Constitutional authority of the National Legislature over appropriating funds,” Konneh said.
It noted that the printed Budget Act of 2024 contains figures different from those the Plenary of the Honorable Liberian Senate voted on and passed on June 30, 2024, as initially received from the House of Representatives.
It noted that the Secretary of the Senate had initialed a table representing the headline numbers for the eleven sectors of the Budget, yet the printed versions of the Budget Act and Budget Book show different figures. This suggests a fundamental issue of a constitutional violation or a potential criminal forgery that warrants an immediate investigation.
The committee expressed concern about the reductions in the appropriations for public administration by 6.9%, health by 0.5%, and transparency, and accountability sectors by 2.1%, which it said could prevent the Government from paying wages for civil servants and volunteer health workers across the country. The committee further noted the reduction could also reduce funding to hospitals and clinics including the Emirates Hospital and six district clinics in Gbarpolu County, and other hospitals across the country. “From an institutional standpoint, these unlawful reductions could also undermine our commitment to transparency and accountability, undermining our integrity institutions’ ability to fight corruption,” said the committee members that also include Senators Senator Gbehzonger M. Findley, Grand Bassa, Saah H. Joseph, Montserrado County, Abraham Darius Dillon, Montserrado and Thomas Y. Nimley.
Addressing the Senate Pro Tempore, the committee warned these “illegal adjustments highlight two very troubling scenarios that may bring this body into further public disrepute and, therefore, must be addressed with the full force of the Liberian Senate.”
Scenario one
In this scenario, the committee said the Executive Branch made these adjustments unilaterally, without the knowledge of the Senate. If this is true, the committee noted that it is illegal and an arguable sign that the Executive Branch is undermining the Senate’s authority and disregarding the separation of powers enshrined in the Liberian Constitution. Not acting would continue the trend espoused by the previous administration to usurp the powers of the Senate, the committee warned.
Scenario two
The group said some members of the Legislature made these adjustments – or instructed the Executive Branch to do so – after the Plenary, the Senate’s highest decision-making body, ratified the budget. No individual or group of members in the Legislature has such authority, once a decision is made by the Plenary.
MFDP to blame
The Committee said the discrepancies was made possible owing to the Ministry of Finance and Development Planning (MFDP) failure to publish the detailed 2024 Approved Budget promptly, since the President signed it into law on May 8, 2024, as required by Section 19 of the Amendment and Restatement of the PFM Act of 2009. Instead, the Executive Branch executed the budget fifty-one days after passage without public disclosure of approved appropriations, which is a basic requirement in the law, intended to show transparency.
In either case, the committee called on the Senate to investigate the matter, take action against the culprits, and put in place strong preventative measures. “This will uphold the authority of the Senate and the principle of budget transparency. Both are crucial for strengthening institutions, improving the welfare of our people, and boosting the economy.”
Cutting break short?
The communication was sent by the Konneh-led Public Accounts Committee in July, but no substantive decision has been made. Despite these discrepancies, there are reports that the Legislature is expected to be recalled by President Boakai to act on the draft supplemental budget.
FrontPageAfrica has learned that Liberia is currently negotiating a new Extended Credit Facility Program with the International Monetary Fund – and the Fund has made budget credibility a priority condition before the Board can decide on the new program. This requires a supplemental budget, which, according to Ministry of Finance and Development Planning sources, is being prepared for presentation to the Legislature that could be the basis for President Boakai to recall them from current regular constituency break.
Committee’s recommendation
The committees call for direct that the Executive Branch to republish the budget to reflect the budget figures and appropriations approved by the Senate Plenary and base all budget execution reports on the Legislature’s approved version of the budget and launch a full-scale investigation into these illegal adjustments.
It called on members of the Executive Branch who committed this forgery or changed an important national document to be sent to the Ministry of Justice for prosecution, while complicit senators must face the disciplinary censure of the Senate.
The committee called for the summoning of the Minister of Finance and Development Planning, in line with Section 21, Subpart 1 of the PFM Act of 2009, as amended, to provide explanations for each amendment, detailing how it aligns with the government’s declared fiscal objectives and “remains true to the spirit of allocation efficiency” as approved by the National Legislature.
The senate should mandate the MFDP to publish the Budget Execution Report for the Second Quarter based on the Legislature’s approved appropriations, not the draft or printed budget book for public consumption by July 31, 2024; ensure transparency, accountability, and informed decision-making in the National Budget approval process. It also recommends that the Executive Branch share specific financial documents with the Legislative Branch before the approved National Budget is published. This information-sharing will facilitate a clearer understanding of the financial allocations and priorities, promoting greater collaboration and oversight between the two branches of government. It outlined that key Documents to be Shared include draft, revised, and approved revenue tables detailing all sources of revenue, including domestic revenues (taxes, fees, etc.), external grants, and loans. And the table should reflect any revisions made during the budget approval process, providing a transparent view of expected government income.
