Liberia’s Finance and Development Planning Minister, Hon. Samuel D. Tweah Jr., says the Public Financial Management program of the country is on the right path. Minister Tweah made the disclosure at the signing of the Financing Agreement of the Public Financial Management Reform for Institution Strengthening Project (PFMRISP), held Wednesday, August 28, 2019 between the Government of Liberia and the World Bank.
The PFMRIS Project is financed through an International Development Association grant of US$19million equivalent.
The five-year Project was formally approved by the World Bank Board on July 16, 2019. According to the Agreement, the PFMRISP has five components, which include: Enhancing Domestic Resources Mobilization Sources and Systems, Stabilizing and Strengthening Financial Controls and Performance, as well as Improving Oversight and Public Sector Capacity. Other components of the Project are Improving Upstream and Downstream PFM Systems, and Project Management.
Hon. Tweah told the gathering that two effective conditions set forth in the Financing Agreement have been fulfilled by the Ministry of Finance and Development Planning. He named the conditions as the setting up of a Project Management Unit and the preparation and adoption of the Project Implementation Manual.
The Finance Minister revealed that the Government of Liberia is making significant effort in fulfilling the disbursement conditions categories 2 and 4 of the Financing Agreement.
Also speaking, World Bank Liberia Country Director, Pierre Laporte, expressed delight by stating that it was a pleasure for the Bank to join Liberia in signing a “significant legal Instrument“of the Public Financial Management Reforms for Institutional Strengthening (PFMRIS) Project.
The Bank according to him, acknowledges the need for collaboration with other development partners in the PFM Sector and within the period of one year will set up a Multi Donor Trust Fund (MDFT).
Country Director Pierre said the Bank is expecting contributions from the European Union and Sweden, adding that an effective and efficient PFM system in the public services embraces fiscal responsibility, strategic resource allocation, service delivery and eradicating or minimizing corruption.
He indicated that the project outcome will lead to strengthened domestic revenue mobilization systems through improved online on time filing for large and medium taxpayers; improved financial control in public financing through increased usage of the Integrated Financial Management System (IFMIS); and strengthened accountability in public finance through improved scrutiny over the implementation of the annual performance audit observations and recommendations.
The Bank’s Liberia Country Director assured that the signing of the legal agreement between the Government of Liberia and the World Bank officially signifies the Bank’s agreement to the implementation and the success of the Project.