–AT LIBERIANS’ DETRIMENT; AS Outgoing US Ambassador Michael McCarthy Sets Record Straight; Frowns on Certification by NEC of Sanction-Indicted Officials; Bids Liberia Farewell
As if the lives and betterment of Liberians are not paramount in the political dispensation in the country, member of the 54th Legislature according to outgoing United States Ambassador, Michael McCarthy apportioned unto themselves US$90.8 million in the 2022 Fiscal Year, out of total budget of US$811.6 million, which is about 11 percent of the total budget.
With just 103 legislators apportioning to themselves US$90.8 million from a population of about a little over 5 million people, only shows how heartless people who were elected by their fellow countrymen to lead them and work in their interests.
In his previous press statement before what Liberians consider his last this week, the outgoing US Ambassador, Michael McCarthy miscalculated the figure and told Liberians that the lawmakers had apportioned and spent US$65 million on itself in Fiscal Year 2022. But setting the record straight this week when he spoke to the Liberian media apparently in what is considered his last press briefing, outgoing Amb. McCarthy said: “I discovered that I used the wrong figure in my press release after my last trip to the Southeast. I wrote that Parliament had spent $65 million on itself in Fiscal Year 2022. That was the wrong figure. From the unaudited Statement of Consolidated Fund Account of the Calendar Year 2022, -released by the Ministry of Finance and Development we can now see that the correct figure was $90.8 million for Parliament in FY22, out of a total budget of $811.6 million, or 11 percent of the total budget”.
The Liberian Legislature has been blamed for the many problems affecting the lives and growth of Liberians and the country at large as they focus mainly on itself for personal aggrandizement, leaving Liberians to wallop in abject poverty. Each lawmaker is reportedly earning a little over US$10,000 per month plus other financial benefits while the rest of Liberians are left in the dungeons to suffer the tough economic situation has engulfed the nation.
The lawmakers apportioned monies unto themselves while civil servants make peanuts for monthly wages, which are barely enough to take care of their respective families.
Rep. Kolubah Calls on Liberians to Reject ‘Opposition’ Lawmakers Who Signed US$65M Loan Agreement
It can be recalled quiet recently, Montserrado County District #10 Representative, Yekeh Kolubah, blasted his fellow opposition lawmakers in the House of Representatives for disappointing the people of Liberia as they have allowed President George Weah to have a free ride in his governance of the state.
Rep. Kolubah in his outburst on a local radio said that apart from a few legislators in the Senate and the House of Representatives, the majority of the opposition lawyers have become “bag boys” to the President where they agree with everything he sends to the Legislature for passage.
The Montserrado County District #10 lawmaker was speaking in reaction to the recent passage of the US$65 million loan that was passed by the Senate which it was intended as essential budgetary support falling under the revenue generation category in the 2023 Budget.
US$65 Million Financing Agreement Ratified Amidst Legislative Pressure and Stricter Conditions
As the Government of Liberia sought swift ratification of the US$65 million financing agreement with the International Development Association (IDA), it faced mounting pressure from the Legislature to justify the deal. Initially, the government presented the funds as essential budgetary support falling under the revenue generation category in the 2023 Budget.
However, some lawmakers expressed concern about the timing of the concession but feared that rejecting the agreement would lead to a significant shortfall of US$65 million, in addition to the already projected US$44 million budget deficit. In response to these apprehensions, certain lawmakers convinced their colleagues that refusing to ratify the financing loan agreement could have disastrous consequences for the government, potentially causing a complete collapse.
Despite the government’s public statements, it has not disclosed the extensive prerequisites and conditions set forth by donors to secure the loan. IPNEWS has uncovered these conditions, including the requirement to empower the Liberia Anti-Corruption Commission (LACC) with prosecutorial powers.
Granting the LACC prosecutorial authority was contingent on amending the Act that established the commission, resulting in the displacement of some Liberians from their tenure positions. Nevertheless, the government deemed this measure a necessary compromise given the pressing need for the US$65 million loan.
One of the key conditions in the financing agreement focused on improving public sector transparency and accountability. To fulfill this requirement, Liberia was obligated to enact and uphold the amended act that granted prosecutorial powers to the LACC and placed administrative aspects of asset declaration and verification under the commission’s control. Additionally, the government had to ensure greater transparency in public procurement by approving and publishing Circular No. 001/fiscal year/2023, dated March 27, 2023. This directive mandated all procurement entities to submit quarterly procurement reports and publish verified and validated procurement information in a quarterly procurement compliance report.
Furthermore, under pillar #2, Liberia, through the Ministry of Finance and Development Planning, had to issue a circular adopting debt reporting guidelines that expanded the coverage of debt reporting. This included mandating the annual publication of the audited, verified, and validated stock of domestic arrears of the central government, along with a detailed breakdown of arrears by spending category and the type of economic agents owed payments. The official circular, signed by the Minister of Finance, came into effect on April 4, 2023, and was subsequently published on the Ministry of Finance and Development Planning website on April 11, 2023.
In summary, the US$65 million financing agreement was ratified amidst considerable.
Legislative pressure and strict conditions set by international partners, ultimately aimed at enhancing transparency and accountability within Liberia’s public sector.
It can be recalled that on Thursday, June 29, 2023, the Senate faced an unprecedented situation as several opposition senators defected during a crucial vote on the ratification of a US$65 million loan agreement from the International Development Association (IDA).
During the vote, sixteen (16) senators voted in favor of the passage of the loan agreement, while eight (8) senators, including Darius Dillon (LP-Montserrado County), James Biney (NPP-Mary Land County), Johnathan Boy Charles Sogbie (ANC-River-Gee County), Nyonblee Karnga-Lawrence (LP-Grand Bassa County), Gboto Kanneh (IND-Gbarpolu County), Prince Moye (UP-Bong County), Prince Y. Johnson (MDR-Nimba County), and Jeremiah Koung (MDR-Nimba County), voted against it.
The opposition senators expressed concerns about the loan’s unprecedented nature and raised questions about its timing and procedural aspects. They argued that the passage of the loan agreement did not adhere to the standing order and violated the established rules of the legislature, which require multiple readings before passage.
However, some senators, including Conmany Wesseh (UP-River-Gee County), Francis Paye (Rivercess County), who recently joined ranks with the Unity Party, Daniel Naathan (ANC-Gbarpolu County), Willington Geevon-Smith (Rivercess County), another Unity Party collaborator, and Dr. Henrique Topkah (IND-Bong County), as well as J. Milton Teahjay (UP-Sinoe County), voted in favor of the loan agreement.
This decision came just two days after these senators publicly expressed concerns about the loan’s timeliness. Senator Geevon-Smith emphasized that his vote was contingent upon the Ministry of Finance submitting a written program detailing how the funds would be utilized. However, Senator Smith changed his stance a day later, stating that he now supported the loan agreement.
Notably, Senator Conmany Wesseh presented an argument in favor of the loan agreement, much to the dismay of his colleagues. He highlighted that the financial instrument was included in the 2023 passed fiscal budget as a line item called ‘extended budget support.’ Wesseh cautioned that rejecting the loan agreement would mean canceling $65 million from a budget that already faces a shortfall of over $40 million. Nevertheless, rumors persist regarding potential financial inducements offered to lawmakers, but these claims have yet to be independently verified by IPNEWS.
Furthermore, critics of the government have voiced disapproval of the loan, alleging that the funds may be misused as campaign money. However, the loan agreement was signed between the Government and the International Development Association on June 19, 2023, extending a credit of US$65,000,000.00 to Liberia in two installments. The repayment schedule spans from July 15, 2029, to January 15, 2035, with an interest rate of 8.33334%, culminating in a final repayment.
According to Rep. Kolubah, the lawmakers are only seeking their personal interests throwing the general wellbeing of Liberians.
At the same time, outgoing US Ambassador McCarthy recognized that the word “nonsense” in the Liberian context is seen to be abusive, so he lauded the Liberian media for calling his attention to that.
“First, the use of the word “nonsense” during the last press conference without fully appreciating how that word is viewed in Liberia. Thank you to the journalist who attempted to correct this phrasing and bring to my attention the cultural context. This phrasing may have clouded the delivery of our important message, which is if you sign that signatories of the Farmington Declaration should honor their pledge and not be physically provocative or promote violence—these people need to stand by that pledge. Enough said!”
Outgoing U.S. Ambassador Michael McCarthy Expresses Disappointment Over Government’s Failure to Investigate Sanctioned Officials
At the same time, outgoing United States Ambassador Michael McCarthy says it is “extremely disappointing and discouraging” the Government of Liberia’s failure to investigate officials that were sanctioned by the United States Treasury Department for their alleged involvement in public corruption.
In his final press roundtable with the Liberian media, Amb. McCarthy debunked “false” media reports that the Embassy said it sees no problem with sanctioned individuals running for public office.
Amb. McCarthy has been vocal in speaking against graft in Liberia, a pledge he made during his confirmation hearing following his nomination by former U.S. President Donald J. Trump. Upon taking the assignment, he made his presence felt by boldly speaking against “rampant corruption” that has marred the Weah-led government.
Under his tenure, several Liberian officials were sanctioned by the U.S. Treasury Department under the Global Magnitsky Act for their “involvement in public corruption.” Two of the sanctioned officials, former Minister of State for Presidential Affairs Nathaniel McGill and Bill Twehway, former Managing Director of the National Port Authority have been certificated by the National Elections Commission (NEC) to contest for Senator in their respective counties in the ensuing elections on the ticket of the ruling Coalition for Democratic Change (CDC).
With their certification, the two disgraced former government officials will be joining Senators Prince Y. Johnson of Nimba County and Varney Sherman of Grand Cape Mount County, who had earlier been sanctioned to run or rerun for public office.
He said contrary to the report, the Embassy was not in favor of the idea.
“The Embassy is NOT ‘okay’ with it, and we find it disappointing that political parties are nonchalant about the Global Magnitsky sanctions. The U.S. Department of the Treasury spends many hours and other significant resources to research and approve sanctions on individuals. Though the Embassy is separate from the Treasury Department, we fully trust and respect the validity of these designations.”
He added: “The fact is that no Liberian Government entity has even formally taken up our accusations to initiate an investigation to determine the veracity of USG “allegations.” This is extremely disappointing and discouraging. That said, if the voters of Liberia wish to elevate to public office individuals who have been sanctioned, that is their prerogative.”
During the press conference, Ambassador McCarthy condemned the attack on Senator Prince Y. Johnson’s Church, deeming the action unacceptable and asserting that such behavior should not be repeated, referring to it as “nonsense.” However, during his final press roundtable with the Liberian media on Tuesday, Amb. McCarthy expressed regret that his use of the phrase may have overshadowed the Embassy’s crucial message, which called on political parties who had endorsed the Farmington Declaration to refrain from engaging in provocative or violent acts.
He expressed hope that the media and the Liberian public recognize his “genuine care for the country and the countrypeople,” even if the delivery of his messages may have been course at times.
“My motivation has always been ‘what is best for Liberia?’ Not to say that I know better but that some Liberian actors know better than to do what they are doing. They know better!”
“Liberians are Unhappy”
He mentioned that Liberians who work for him at his residence and the Embassy continue to be unhappy as they continue to pay “income tax, but they don’t see where the money is going.”
He said: “Never hesitate to ask what is happening with taxpayer funds – that is YOUR money! It doesn’t belong to the LRA, it doesn’t belong to the Ministry of Finance and Development, it doesn’t belong to the Administration, AND, it doesn’t belong to Parliament. It belongs to the PEOPLE!
“Just as Senators and Congressmen should be serving the people when they appropriate revenue, YOU represent the people when you probe and research how taxpayer funds are spent. Don’t forget that! You have a right to know, and a duty to ask questions.
It isn’t necessarily a game of “gotcha,” it is also part of a healthy continuous debate on funds can be spent most effectively.”
Concluding, Amb. McCarthy said: “I would like to address the false reports that the U.S. Embassy was ‘asked’ about nominating sanctioned individuals for office and that the Embassy replied that this was “all right.” The Embassy is NOT “okay” with it, and we find it disappointing that political parties are nonchalant about the Global Magnitsky sanctions. The U.S. Department of the Treasury spends many hours and other significant resources to research and approve sanctions on individuals. Though the Embassy is separate from the Treasury Department, we fully trust and respect the validity of these designations.
The fact is that no Liberian Government entity has even formally taken up our accusations to initiate an investigation to determine the veracity of USG “allegations.” This is extremely disappointing and discouraging. That said, if the voters of Liberia wish to elevate to public office individuals who have been sanctioned, that is their prerogative.
This should also prompt the listener to ask if anything else from the same source is suspect.
At this time, I would like to say that I hope you all and the Liberian public recognize my genuine care for the country and country people, even if the delivery of these messages may have been course at times. My motivation has always been “What is best for Liberia?” Not to say that I know better but that some Liberian actors know better than to do what they are doing. They know better!
The Liberians who work for me at the Residence and at the Embassy continue to be unhappy. They are now paying income tax, but they don’t see where the money is going.
This brings me to something we’ve discussed before – your role in following the money. Never hesitate to ask what is happening with taxpayer funds – that is YOUR money! It doesn’t belong to the LRA, it doesn’t belong to the Ministry of Finance and Development, it doesn’t belong to the Administration, AND, it doesn’t belong to Parliament. It belongs to the PEOPLE!
Just as Senators and Congressmen should be serving the people when they appropriate revenue, YOU represent the people when you probe and research how taxpayer funds are spent. Don’t forget that! You have a right to know, and a duty to ask questions.
It isn’t necessarily a game of ‘gotcha,’ it is also part of a healthy continuous debate on whether funds can be spent most effectively.”
Now, off the record. I want to take this time to thank you all for your dedicated and excellent reporting. Thank you for asking the tough questions, and I encourage you to never stop! Your work is crucial to public awareness. Interacting with Liberian media has been one of the many highlights of my time here. Keep up the good work. Thank you.
“Ask what’s happening to Taxpayers’ Funds” -US Amb. McCarthy Enjoins Liberian Journalists
In a related development, outgoing Ambassador McCarthy, has called on the Liberian media to vigorously exercise due diligence in probing how taxpayers’ funds are spent because the money doesn’t belong to the national revenue collectorate (LRA), the Ministry of Finance and Development Planning (MFDP), the Weah administration or the National Legislature; rather the taxes collected belong to the people of Liberia who seem not benefit from their tax dividends.
“The Liberians who work for me at the Residence and at the Embassy continue to be unhappy. They are now paying income tax, but they don’t see where the money is going. Which brings me to something we’ve discussed before – your role in following the money. Never hesitate to ask what is happening with taxpayer funds – that is YOUR money! It doesn’t belong to the LRA, it doesn’t belong to the Ministry of Finance and Development, it doesn’t belong to the Administration, AND, it doesn’t belong to Parliament. It belongs to the people!” Ambassador McCarthy said when he addressed the media during his last press conference marking the end of this tour of duty in Liberia.
Ambassador McCarthy further used the occasion to challenge journalists to go beyond the ordinary call of duty and ask those hard questions of duty bearers that will inform the citizenry on how their taxes are being utilized to their wellbeing.
“Just as Senators and Congressmen should be serving the people when they appropriate revenue, you (the media) represent the people when you probe and research how taxpayer funds are spent. Don’t forget that! You have a right to know, and a duty to ask questions.
“It isn’t necessarily a game of “gotcha,” it is also part of a healthy continuous debate on how funds can be spent most effectively.
“Now, off the record. I want to take this time to thank you all for your dedicated and excellent reporting. Thank you for asking the tough questions, and I encourage you to never stop! Your work is crucial to public awareness. Interacting with Liberian media has been one of the many highlights of my time here. Keep up the good work. Thank you,” Ambassador McCarthy enthused.
