-GAC Says Millions not Unaccounted for
The General Auditing Commission (GAC) released an audit report that highlighted significant financial and administrative irregularities regarding the County Development Funds (CDF) in Grand Kru County. The audit found major unretired balances, missing documentation, and a lack of approved financial systems.
The GAC reported major compliance issues, indicating missing accountability, adding there has been unaccounted funds from ArcelorMittal in the tone of US$167,389.64 and inadequate support for payments exceeding US $304,000 and L$3 million.
The GAC audit report for Grand Kru also speaks about system failures, meaning operations lacked approved financial manuals or automated systems, with significant, undocumented fuel expenditures.
Tax Non-Compliance is been shown, indicating failure to remit over US$83,000 and L$7.4 M in taxes, along with mandatory NASSCORP contributions.
With over US537, 000 in total allocations scrutinized, these findings have caused local concern. In response to the lack of visible development, the Liberian Senate ordered broader audits of county administrations.
Non-compliance with the General Auditing Commission (GAC) in Liberia involves failing to submit financial statements, ignoring audit recommendations, or mismanaging public funds. Consequences for affected agencies, Ministries, Commissions (MACs), and officials range from enforced budget freezes to criminal prosecution.
Under Liberia's legislative and legal framework, the consequences of GAC non-compliance include Legal Action & Prosecution of Unresolved audit findings are routinely forwarded to the Liberia Anti-Corruption Commission (LACC) for investigation and potential prosecution of public officials involved in fraud or embezzlement.
Legislative Sanctions: The Legislature's Public Accounts Committee (PAC) holds public hearings. Lawmakers can recommend withholding or freezing the operational budgets of non-compliant agencies or MACs until they fully account for previous disbursements.
Administrative Disciplinary Measures: Officials responsible for unauthorized spending or failing to provide proper documentation face administrative penalties. The Public Financial Management (PFM) Act allows for measures such as suspension without pay or immediate dismissal.
Budget Withholding: Spending entities that fail to justify expenditures or report properly often face under-disbursement of approved appropriations, hamstringing their operational mandates.
Public Scrutiny & "Name and Shame": The GAC regularly publishes findings via the General Auditing Commission and local civil society groups (such as WONGOSOL) actively demand prosecution for those ignoring audit recommendations.
