It seems as if intense pressure is mounting on President Joseph Nyuma Boakai to take punitive action against Commerce Minister Amin Modad in a US$96,000 vehicle purchase saga, with the Center for Transparency and Accountability (CENTAL) being the latest to join calls for administrative retribution in the matter as well as US$15 Million unapproved and off-budget spending by officials of the Executive Branch of Government.
In a press statement issued on Thursday, October 3, 2024, CENTAL Executive Director Anderson Miamen said some officials of government continue to violate the Code of Conduct by refusing to declare their assets, incomes and liabilities before assuming and exiting office.
He said there has been no administrative actions, so far, as these developments tend to undermine transparency and accountability in government as well as President Boakai’s anti-corruption initiatives and commitment to the rule of law pillar of his ARREST Agenda for Inclusive Development (AAID).
He said the Liberian media on September 23, 2024, were inundated with allegations of a suspicious US$150.000 request by the Ministry of Commerce to the Liberia Revenue Authority (LRA) to purchase a vehicle for use by the Minister of Commerce, Mr. Amin Modad, and LRA has since clarified that the actual funds approved were US$96,000 and not $150,000, an amount meant for capacity building of the ministry, specifically for purchase of vehicles to be used for trade-related activities.
“Yet, CENTAL wonders why funds meant for capacity building in terms of trade were used entirely to purchase a luxury vehicle for Minister Modad. CENTAL believes that such funds should have been used to build the capacity of relevant departments at the ministry,” he said
He said the purchase violates Section 8(n) of the 2024 Budget Law which states that “All procurement of vehicles in this year 2024, except for the President, Vice President, Speaker, Pro-Tempore, and Deputy Speaker and the Chief Justice of Liberia, shall not exceed US$ 45,000 at duty paid. These measures shall apply to all state-owned enterprises”.
CENTAL said the expenditure by the minister does not only violate the law but amounts to an abuse of state resources that could be used to better the lives of the Ministry.
“CENTAL urges President Boakai to commission an independent investigation into circumstances leading to abuse of resources by Minister Amin Modad with a view to further strengthen processes around management and use of fees generated through customs services. We call on the president to take administrative actions against Minister Modad for violation of the Budget Law 2024,” he said.
Miamen said reports have also emerged that from the period January to August 2024, the Government of Liberia through the Ministry of Finance and Development Planning (MFDP) was engaged in off-budget expenditures totaling US$15 million on the part of the Executive specifically the MFDP, violates the Public Financial Management (PFM) Law of Liberia which provides for spending according to approved budget lines.
According to him, the law provides that expenditures exceeding appropriations are only allowed under ‘exceptional circumstances’ and that even in such cases, the MFDP is required to submit a statement of expenditures in excess to the legislature and, following review by the Legislature’s Public Accounts Committee, it shall decide by resolution on whether to allow the excess expenditure.
“Further, mindful that certain spending needs might arise, Section 8 of the PFM Law establishes a contingency fund (CF) under the auspices of the MFDP but does not give it a blanket discretion regarding use of the funds. Section 8(1) provides a three-part test for expenditures from the contingency fund: i) expenditures must meet an urgent and unforeseen need, ii) Payments for such need cannot be postponed until the passage of a supplementary budget or the next annual National Budget, and iii) postponement of such payment would significantly affect the public interest. Further Section 8(3)(c) provides that contingency fund expenditures are not to exceed 2 percent of annual domestic revenue as estimated in the budget, “ he said.
He said given that the annual domestic revenue estimated in the 2024 National Budget is US$696.43 million, only US$13.92 million and not US$15 million could have been used under contingency spending. Even so, any such expenditures must meet the required criteria, adding that CENTAL anticipates a detailed explanation as to how these expenditures comply with criteria laid down by law.
He said off-budget spending by the MFDP fast becoming a routine passed on from the erstwhile administration of former President George M. Weah’s Coalition for Democratic Change (CDC) to the current administration, and the group is deeply concerned over the fact that both past and present governments are having a notoriety for blatantly violating the budget laws in broad daylight with little or no reprimand for those culpable.
He said CENTAL recommends a comprehensive report on the need for such expenditures and further calls on President Boakai to take appropriate actions against MFDP officials for exceeding the limits prescribed by law.
By Tonita N. Copson
