The NEWS (Monrovia)
28 November 2008
Monrovia — When the UN Panel of Experts reported in 2006 that importers of petroleum products owed the Government of Liberia a total of US7.53 million in taxes, the management of the Liberia Petroleum Refining Company (LPRC) dismissed the panel's report as untrue.
The second UN Panel report of June 2007 indicated that this amount had increased to US$8.473 million. This time, LPRC management challenged the authenticity of the report through rebuttal articles published in some local newspapers.
However, two years on, an audit report released by the General Auditing Commission (GAC) on the revenues of the Republic of Liberia confirmed the reports.
According to the report, during the course of the audit, there were no documents presented to agree or refute the Panel's reports, neither were there documents to show that the Ministry of Finance (MOF) had collected the US$8.473 million.
The Panel blamed the LPRC Management for its failure to collect GOL revenue and had the opinion that it was the responsibility of LPRC to collect the revenue. LPRC, instead, challenged the Panel's position and argued that the collection of oil taxes from importers was the responsibility of MOF and not LPRC.
The GAC explained that during the audit, it requested from the Finance Ministry to provide evidence to support the US$8.473 million. However, the documents were not made available for audit purpose.
Continuing, the report said on 15 July 2008, auditors visited Customs Collectorate at the Bushrod Island LPRC compound to obtain necessary documents relating to the collection of said amount, but the Deputy Collector, Sando Raynes said, the collectorate was established on February 6, 2008, and as such, could not provide documents before this period.
He further said the collectorate has not been authorized to collect GOL tax arrears.
The GAC report revealed losses in government revenues amounting to over US$6 million and US$28.1 million over due taxes, citing that losses were due to inadequate documentation to ensure that uncollected taxes owed government by petroleum importers and other businesses were paid.
Henceforth, the GAC recommended that the Deputy Minister for Revenue (DMR) should ensure that all importers of petroleum products adhere to count 7 of the petroleum import license which states, "In addition to the payment of LPRC's fees, the IMPORTER shall be responsible for and to pay directly to the GOL the full amount stipulated by the Government of Liberia relative to Import Levy and Sales Tax on each gallon of petroleum product imported and/or sold in the Republic of Liberia".
It also recommended that the Commissioner of Customs and Excise should ensure that all documents relating to the collection of the US$8.473 million are provided.
Responding to an inquiry regarding the collection of the revenue in question, the DMR informed GAC auditing team that there was plan to conduct a special tax audit to address all issues relating to tax arrears. However, she could not confirm the total outstanding in the absence of the planned tax audit by the Ministry of Finance in collaboration with experienced forensic auditors.
She acknowledged the assertion of LPRC Management that it was the responsibility of MOF to collect all GOL revenue on petroleum products.
Additionally, she attributed the delay in said collection to occasional requests by LPRC to delay enforcement actions given inventory level of importers owing to the strategic importance of petroleum.
Management also proposed to effect the following measures which include the establishment of a full collectorate at the LPRC, bond the commodity, establish a cashier window to facilitate payment and phase enforcement actions in order not to disturb the market, among others.
The audit report also revealed that the petroleum importer, GEPCO, has an outstanding balance of US$34,868.34 and that the GAC has mandated that the amount be paid.
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it saddens me oh liberia, the land of the free, why and what has happen to you.our educated people has let this country down, they are after their own stomacks and dont care about the country and the next generation,they are like esau who sold his inheritance for a bowl of soup. the leaders pretend to care but in secret places they dont.how can this happen in liberia.is liberia for sale??what are the so called democratic leaders doing??liberians are nothing in ghana,guenea,usa, britain and all over the world and our leaders are smiling at home collaborating with foreign… [Read Full Text]
It is very sadden that many of you are blaming the Sirleaf's administration for the country structural mishap. Your need to look at the entire history of Liberia and blame those (founders)who assembled the institutional polices. They made lot of blunders due to lack of experience and also, rushing to form a state without any clear agenda, dirction and system in place. Liberia is on the right track and we all need to look at the positive steps the current leader is undertaking and stop the rubbish talk.
I know it seems like I defend the president and I rightly… [Read Full Text]
I agreed with you on revisiting our government policy but if we don't get the right people to do the job than the new policy will lack effectivenes. What do you expect when Harry Greaves, a strong supporter of almost all the coups and wars in Liberia in charge of LPRC. Most of the officials in Ellen government are aging and they are getting wages(at the expense of the people)they lost in the late Samuel Doe and world criminal Charles Taylor, most of them was in exiles during those brutal regimes. LPRC is been run by one man and… [Read Full Text]
Liberia is aFailed State.......Nothing else need to be said.It will never develop,never be an important country on the continent.That country ,for some reasons, never evolved.The obituary for Liberia had been written many years ago.
I think Liberia will rise above all these problems because new foundations are being laid by Ma Ellen. I understand the frustration of all Liberians about the level of corruption, but it's easier said than done.
New Laws are being made to back up possible action against some of these criminal acts. And Liberians are learning from their mistakes. With solid foundation in place, future leaders will build on and move our country forward. I won't give up at all. Failed states have the capability to rise again. Liberia will surely do. Let's not give up.
I agreed with the writer that Liberia is a fail state. I strongly believe that trusteeship under the United nation might help move the country in the right direction. The goals of Poverty reduction programs goal is aimed at economic or non-economic poverty. The main focus are education, economic development, and income redistribution. Garmack is indeed right, Poverty Reduction program in Liberia is a myth for the vast majority of the people (no impact). I was in Liberia last march 2008 and it is indeed sad to see what majority of the people go through why the so called… [Read Full Text]
The Poverty Reduction program in Liberia is a myth for the vast majority of the people, I mean the poor people. The scheme is intended for the few in power to enrich themselves in the name of the people. Where in the world, but africa, millions of U.S. dollars is being misappropiated by government officials who are not charged and continued to hold their offices? The other time it was the Ministry of Finance in collaboration with the National Bank. At another time, the National Social Security Corporation and now L.P.R.C. and MOE the institutions responsible for collecting, managing and… [Read Full Text]
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At this time in our country's reconstruction period when every penny is needed, we have government officials giving tax waivers and LPRC is not even collecting taxes. At the same time, Pres. Sirleaf-Johnson is panhandling around the world. Don't blame these importers, blame our government's policies. It's time to revisit these policies from the 1940s and '50s that had importers and other businessmen paying directly into the coffers of government officials. This has been going on for so long that there are no tariffs collecting policies in place.