The joint committee on Public Accounts and Expenditure (PAC) has ordered the Ministry of Public Works to pay into government’s account the amount of US$1,512,601.66.00. The instruction comes in the wake of a report by the General Auditing Commission (GAC).
The report conducted on the financial statements of the Liberia Road Assets Project has uncovered multiple financial and operational discrepancies for the period from July 1, 2021, to December 31, 2022. The PAC joint committee frowned on the Public Works for knowingly and single-handedly waving government’s revenue without a proper approval.
The committee has also mandated the Ministry of Public Works to take responsibility of said funding and pay back to government’s account. The GAC report indicated that the Infrastructure Implementation Unit failed to deduct and remit withholding taxes amounting to US$110,138.28.
The report said Contractors Chico and CICO similarly did not deduct and remit taxes and duties totaling US$1,512,601.66. Vendors’ withholding taxes amounting to US$47,950.88 were also not deducted and remitted.
GAC report further said financial statement disclosures revealed that unpaid claims totaling US$6,152,245.88 and LRD 35,280,459.86 for routine maintenance services provided by CICO and CHICO were not disclosed in the notes to the financial statements.
GAC reported that a discrepancy of US$31,918 was observed between the Interim Financial Report and the Financial Statement for cumulative balances.
“Documentation Issues: Financial statements signed by the PFMU Manager and the Project Coordinator lacked specific dates of preparation and signing, contrary to the cash basis requirements adopted by the Government of Liberia. Payments amounting to US$1,462,559.24 for goods and services were made without adequate supporting documents, questioning the authenticity of these transactions. Good purchased amounting to US$18,093.80 lacked supporting documents such as quotation and bid evaluation reports,” GAC report said.
According to report, petty cash float replenishment was delayed and initiated when the cash balance rose above 90 percent instead of the required 50 percent and NASSCORP deductions for staff were not made and remitted.
“Two deeds for land bought by the contractors were not available for inspection during the audit. Infrastructure and Maintenance Concerns: The Project Manager’s office and camp in Weala, Margibi County, and Palala, Bong County, were found to be poorly maintained and abandoned. Fixed assets were not properly coded, and the fixed assets register was incomplete. There was no evidence of periodic physical verification of assets or movement of assets within the project’s vicinity,” GAC report disclosed.
