By James T. Brooks
MONROVIA — A comprehensive audit by the General Auditing Commission (GAC) has exposed a national revenue system plagued by hundreds of millions of dollars in unreconciled transactions, unauthorized withdrawals, and systemic record-keeping failures spanning more than six years. The report, signed by Auditor General P. Garswa Jackson Sr. and submitted to the Legislature, provides a damning assessment of the government’s management of tax revenue collected through transitory and consolidated accounts at the Central Bank of Liberia between July 1, 2018, and December 31, 2024.
The financial gaps identified in the report are staggering. Auditors found that US257,512,276andL23,633,186,485 recorded in transitory bank accounts at commercial banks could not be traced to the General Revenue Account at the Central Bank. Conversely, US165,783,464 and L10,958,454,428 recorded in the General Revenue Account could not be traced back to the transitory accounts. These discrepancies resulted in net variances of US91,803,427 and L12,674,732,056.
The breakdown of data integrity extended to the Liberia Revenue Authority’s (LRA) internal systems. Revenue receipts totaling over US1.7billionandL54.3 billion in the Tax Administration System were missing from the General Revenue Account. Meanwhile, entries in the General Revenue Account totaling US1.3billionandL68.3 billion had no matching records in the Tax Administration System, leading to a cumulative variance of US373,919,113.26andL16,746,210,284.90.
Logistical failures also compromised the system’s security. While commercial banks are legally mandated to transfer tax deposits to the Central Bank within 24 hours, the audit found that no bank consistently met this deadline during the six years. Delays averaged between three days at Access Bank to 24 days at Ecobank, with Global/Bloom Bank and UBA averaging 21 and 10 days respectively. During these windows, auditors discovered unauthorized withdrawals—including payments for school fees and online transfers—from accounts specifically reserved for government revenue.
Further irregularities were noted in the customs and digital systems. In ASYCUDA, the automated system for customs data, auditors found US$63.9 million in variances and thousands of payments lacking receipt numbers. The Liberia Integrated Tax Administration System (LITAS) was similarly compromised, as auditors could not determine the currency denominations for various assessments. In rural collectorates, the situation was even more dire; automated systems were nonexistent, forcing staff to use manual bills and hold cash for extended periods, which made individual reconciliation impossible.
The GAC also flagged millions of dollars in “reversals” and “negative debits” that lacked supporting documentation or original transaction references. Furthermore, commercial banks violated financial regulations by failing to close transitory accounts at the end of the fiscal year and overcharging the government for maintenance fees. The investigation was hindered by several entities, including Bloom Bank, Lonestar Communication Corporation, and Orange Liberia Limited, which refused to provide the requested financial statements.
Despite claims from the Ministry of Finance, the LRA, and the Central Bank that these discrepancies were merely the result of timing differences or system architecture, the Auditor General rejected these justifications due to a lack of supporting evidence. Finance Minister Augustine Kpehe Ngafuan, who inherited the crisis upon taking office in September 2024, now faces the task of addressing failures that occurred under his predecessors, Boima S. Kamara and Samuel D. Tweah Jr. Auditor General Jackson has urged the Legislature to treat the report’s recommendations as a matter of urgent national priority to restore accountability to the nation’s public finances.
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