Liberia: LACC Goes For McGill, Others In Ministry of State Audit

Crime Watch

Liberia: LACC Goes For McGill, Others In Ministry of State Audit

—-But McGill Fires Back Ahead of LACC Investigation tomorrow

IPNEWS: The Liberia Anti-Corruption Commission (LACC) says it has begun investigation over an alleged ‘payroll Padding, and Acts of Corruption’ resulting from payments affecting a supplementary payroll containing 728 names at the Ministry of State for Presidential Affairs, which was allegedly created outside of the framework of the Civil Service Agency (CSA).

In a communication address to Senator Nathaniel McGill, dated August 16, 2024, the LACC states that details of the allegation reveal that the supplementary payroll containing 728 names were created outside of the CSA framework during the tenure of Senator McGill, as Minister of State for Presidential Affairs.

“Accordingly, the process was marred by irregularities amounting to payroll padding.”

“Given your position as Minister of the Ministry of State at the time, the LACC believes that you could provide some useful information to aid this investigation. Hence, you’re invited. You are also advised to come with your legal counsel and all relevant documents to support your testimony.” The LACC communication read.

In a swift reaction to the LACC’s invitation, Senator Nathaniel McGill, accused the LACC of attempts to silence his voice.

“In light of our unwavering stance against bad governance and the government’s unsuccessful attempts to silence our voice, we have received formal communication from the Liberia Anti-Corruption Commission (LACC).”

“They have requested my presence to provide information that will assist in their ongoing investigation into allegations of payroll padding and corruption related to salary payments on a Supplementary Payroll containing 728 names at the Ministry of State for Presidential Affairs.”

“ As public servants committed to transparency and accountability, no number of allegations can deter or silence us. We remain resilient in our advocacy for transparency and accountability, and we will continue to stand firm in our efforts to ensure that good governance prevails. Out of respect for the LACC, we will attend the inquiry session scheduled for tomorrow at 11 AM, after which I will address the press.”

It may be recalled, the authoritative Independent Probe investigation unveiled early July 2024 from a leaked GAC audit report how million when unaccounted for.

In early March 2024, President Joseph Nyuma Boakai, Sr., has instructed the General Auditing Commission (GAC) to conduct a comprehensive audit of the Ministry of State for Presidential Affairs. The audit is part of the Boakai Administration’s commitment to fighting corruption and promoting transparency and accountability.

At a meeting held Monday, March 20, 2024, at the Executive Mansion, officials from the General Auditing Commission and the Ministry of State for Presidential Affairs discussed the audit. Deputy Minister for Administration at the Ministry of State, Atty. Cornelia Kruah Togba, who was also in the meeting, stated that the audit is aimed at ensuring efficiency and effectiveness in the Ministry’s affairs.

Liberia’s Auditor General, P. Garswa Jackson, Sr., responding to the President’s mandate, said the Commission will begin with a System Audit since the Ministry of State for Presidential Affairs has not been audited for a long time. He explained that the audit will focus on budget management, cash management, procurement procedures, and other areas.

Auditor General Jackson expressed the hope that this becomes an ongoing process since the Ministry has not been audited for such a long time. The Commission plans to send out engagements’ communication by March 27, specifying the audit period, scope, and commencement date. The GAC’s report on findings is expected within a month.

The pronouncement for the commencement of audit at the Ministry of State which handles affairs of the Liberian President, comes barely 72hrs since President Joseph N. Boakai decommissioned an earlier audit of the National Security Agency, an intelligence gathering armed of the government of Liberia security mechanism.

The General Auditing Commission (GAC) in early July 2024 released a critical audit report on the Ministry of State for Presidential Affairs (MOS) for the period ending March 31, 2024. The report reveals substantial non-compliance with key financial and governance laws, highlighting severe administrative shortcomings.

The GAC identified significant governance issues within the MOS, noting the absence of essential strategic and operational plans. The Ministry lacked functional audit and budget committees, and there were no records of senior management meeting minutes or monitoring and evaluation reports, indicating a failure to maintain adequate oversight and governance structures.

The audit uncovered that the Ministry exceeded its approved budget for 2023 without any evidence of supplementary budgetary approval. Furthermore, the MOS failed to prepare comprehensive annual budgets or budget performance reports, pointing to a lack of fiscal discipline and transparency.

The MOS did not prepare financial statements in accordance with the International Public Sector Accounting Standards (IPSAS) cash basis from July 1, 2018, to December 31, 2022. Discrepancies were found between various financial reports, indicating issues with financial accuracy and accountability.

Significant irregularities were found in personnel management, including the absence of approved human resource policies, organizational and salary structures. The Ministry failed to maintain proper attendance logs, performance evaluations, recruitment documentation, and retirement records, raising concerns about the integrity of its personnel practices.

The audit report highlighted unauthorized and undisclosed bank accounts, a lack of monthly bank reconciliation statements, and inadequate segregation of duties. These deficiencies suggest weak cash management practices and potential risks of financial mismanagement.

The MOS lacked a functional procurement committee and did not prepare necessary procurement plans. The Ministry made substantial payments without supporting documents, indicating a disregard for procurement regulations and accountability standards.

The GAC found that the MOS did not have policies for fixed assets management, lacked registers, and did not conduct periodic physical verification of assets. Inventory management was also inadequate, suggesting potential misappropriation or loss of assets.

The audit report noted the absence of policies for revenue projection, collection, and recording. Revenue collected was not deposited in a timely manner and was used for operational purposes without supporting documentation, highlighting severe revenue management failures.

The GAC’s findings stresses the urgent need for reforms within the Ministry of State for Presidential Affairs to ensure compliance with financial and governance standards. These revelations call for immediate corrective actions to address the systemic issues identified in the audit.

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