———- Provide Leads in controversial 40Million V.S. 20.5 Million

IPNEWS: Liberia’s Finance and Development Minister designate, Boima Kamara, has told a Senate committee hearing that repositioning the current state of Liberia’s economy will require a more secure and sustain financing for critical investments, with serious optimization of public resources for the betterment of the larger populace.

Finance Minister designate Kamara stated that the repositioning process of Liberia’s economy especially at an extraordinarily challenging time couple by effects of COVID-19, and the Ukraine-Russian war on the global economy stalemate, with invitation for global growth and demand of development export from Liberia, must have the qualified and prepared individuals with the right strategies to make it work.

He explained that there have been issues of low economic growth for the last six years with an average of 1.3 percent double digit inflationary pressure on the back of exchange rate depreciation and frequent recasting of the national budget on account of underperforming revenue.

“The fiscal balance of the government that we are inheriting is in a bad state,” he said, and furthered, “The report of $40 million as the GOL consolidated account balance as of January 19, 2024 is not supported by the fact.”

He reveals that the balances reported by the CBL as of the same date,   January 19, 2024,  showed  20.5 million, stressing that the Liberian dollar component balances converted and added to the US dollar balance are highly incumbent and are not $40 million.

“When it comes to the balances of the GOL consolidated account, there can be no coin mingling of balances of old fiscal year, i.e. FY 2023 and the new fiscal year 2024.  Consistent with Section 34 of the PFM Act of 2009, this means all encumbrances and commitments of funds of the existing old account which, in this case is the FY 22023 Consolidated balance, records show the MFDP borrowed 18 million from the CBL to fund payroll of November and December of 2023. He then promised to give clarity on this matter as the confirmation proceeded.

“As we are made aware, Liberia has been sanctioned due to lack of payment of dues to the African Union, the African Development Bank , in addition is default to the bank of USD160,000”, he said, giving additional historical accounts of the country’s indebtedness to other institutions by the past administration.

He told the Senate that he has come to call to service with over 22 years of work experience both at home and abroad dealing with monetary and fiscal development planning and innovativeness in addressing issues in regional, and continental levels.

He mentioned that he worked with the UN Economic Commission for Africa (UNEC) West Africa Regional Office, where he helped to implement, monitor and evaluate reports on the agenda 2010, and African Union Transitory in West Africa, the system with the formulation of ECOWAS Vision 2050 framework drafting.

He said he also supported the Continental Africa Free Trade Area (CATA) in the West Africa Region, and further coordinated the impact assessment of COVID-19 and recovery response amongst others.

“Our part of the African Disease Control and prevention (Africa-CDC) included focusing on the facilitation of partnership between the Africa-CDC and finance and economic planning communities, developing strategies and identifying the best practices to engage relevant stakeholders, Mr. Kamara explained, adding that this was also to leverage financing to further support the health and economic program for the Financing Africa-CDC, to develop relevant program to boost investment in public health.

“As we seek to build a vibrant economy that is inclusive and where jobs are sustainable, it is now time for all Liberians to put the nation first.  “We must confront and meet the foe with valor unpretending,” he borrowed a line from the National Anthem.

The main reason for Liberia’s economic backwardness, he diagnosed, is the old economic module which relies mainly with exportation of raw materials, especially rubber, iron ore and other minerals with limited emphasis on economic diversification which usually paves the way for industrialization of an economy.

But he suggested a shift in the paradigm of the economy when he emphasized, “We must be intentional about innovation and thinking outside the box. And outside the box thinking for example, should consider Liberia’s program with the IMF should go side by side with a robust coordinated and integrated framework that must have where resources have to be spent for auto-managers.”

Boima Kamara, noted, “A newly coined word that should resonate with all Liberians, especially policymakers can be found in the slogan, ‘MADE IN LIBERIA’, a commitment by giving the private sector center stage in national decision making as the engine for growth and development.”

He exclaimed that the time has come for the government to move away from being the largest employers from the private sector as the outcome for sustainable job creation.  Government’s policy should be intentionally supported to encourage domestic value addition with Liberian entrepreneurs leading the charge.

The versed Finance expert narrates that upon taking charge at the Ministry of Finance and Development Planning, he shall renew an enhance partnership with development partners to ensure development assistance be aligned with our national development plan.

“A big thank you to our development partners for continued support to our people. Tangible investment largely in the agriculture value chain where small holders are supported smartly will be a good start.  This is the soft side from my perspective.”

“Liberia’s structural transformation can only be guarantee when most of the borrowing goes towards the binding constraints which includes high cost of electricity, limited payrolls, especially along the growth corridor and strengthening the financial system for more support to development progress. The absence of a capital market in Liberia is another problem which calls for raising needed capital for development and requires more from the government in terms of knowing what are the development wants, how can we agree upon them and what areas do we intend to apply those resources.” Minister Designate Boima Kamara lectured members of the Senate committee.

Touching on Liberia’s inflationary effects, the finance minister designate Kamara told the Senate that the rate of inflation of Liberia stand at 10 percent, which was inherited and there is an urgent need to bring on board bright minds to tackle the current inflationary rates of the country.

He recommends the reintroduction of a more discipline, and transparent way of transaction with trade and commerce.

Mr. Boima Kamara, was recently named by President Joseph Nyuma Boakai, alongside Sylvester Grisby, Minister of State for Presidential Affairs, Jarseo Jallah Saygbe, Minister of Education and Dorbor Jallah, Commissioner General, Liberia Revenue Authority, among others.