A shocking audit has exposed a $2.8 million financial black hole at Liberia’s Ministry of Finance. The General Auditing Commission (GAC) revealed the massive sum is completely unaccounted for, raising serious alarm.
The probe further found the Ministry authorized a staggering $52.8 million in payments without legal approval, far exceeding the national budget. The funds were disbursed to several major agencies, including Public Works and the Liberia Airport Authority.
In response, the Ministry blamed “archiving and document retrieval challenges,” an explanation that has only intensified fierce criticism over transparency and fiscal responsibility at the nation’s core financial institution.
In early 2025, the Liberian government passed the FY2025 National Budget amidst widespread criticism over alleged legal violations, a hasty approval process, and concerns about how the funds are allocated. The controversies surrounding its legality were so severe that the Supreme Court later nullified its initial passage.
President Joseph Boakai signed the US$880.66 million budget into law in January 2025.
Recurrent vs. Capital Spending: Nearly 88% of the budget is allocated for recurrent expenditures, such as salaries, benefits, and operational costs. Only about 12% is designated for critical capital investment projects like infrastructure, education, and healthcare.
Debt servicing: A significant portion of the recurrent budget, US$153 million, is allocated to servicing Liberia’s mounting public debt, which was US$2.6 billion as of late 2024.
The controversy and legal issues
Illegal passage: The FY2025 budget was initially passed in late 2024 by a faction of lawmakers operating outside the authority of then-Speaker J. Fonati Koffa. The Supreme Court later ruled this approval as “ultra vires” (beyond legal powers) and unconstitutional, effectively nullifying the budget’s initial passage.
Attempted validation: In June 2025, the House of Representatives passed a resolution to retroactively legitimize the budget, but its fate awaited concurrence by the Senate.
Lack of transparency and public hearing: Watchdog groups like the Center for Transparency and Accountability in Liberia (CENTAL) criticized the budget for lacking proper public hearings during its rushed passage. Citizens also expressed frustration over the budget’s failure to be made publicly accessible even after being signed into law.
Criticism over budget allocations
Imbalance of spending: Critics have pointed to the huge imbalance between recurrent and capital spending, arguing that it does little to alleviate poverty or drive meaningful development. The small allocation for capital projects means less investment in roads, electricity, schools, and health facilities.
Inflated salaries and perks: The budget drew fire for allocating substantial funds to high salaries, benefits, and operational costs for government officials, including foreign travel and luxury vehicles.
Underfunded key sectors: Specific sectors crucial for development, such as agriculture, education, and health, were criticized for receiving minimal capital investment, with most of their budgets consumed by recurrent costs.
Budget shortfalls: Despite the approved budget amount, a US$17.8 million revenue shortfall was reported for the first quarter of FY2025, primarily blamed on non-compliance by state-owned enterprises (SOEs) and weak revenue collection. By mid-year, the government reported stronger revenue collection but still faced concerns about debt and operational efficiency.
The path forward for the FY2026 budget
To address these issues and restore public trust, the government formally launched the preparation process for the FY2026 budget in July 2025. The Ministry of Finance and Development Planning has emphasized the need for a timely and transparent process that focuses on the government’s ARREST Agenda, which prioritizes agriculture, roads, rule of law, education, sanitation, and tourism. Courtesy of West Afrik Television
