Monroiva — U.S Chargé d 'Affaires Catherine Rodriguez, on Thursday, urged the Liberian government to demonstrate a culture of accountability if it is serious about increasing revenue and supporting its development efforts.
Madam Rodriguez spoke at the Ellen Johnson Sirleaf Ministerial Complex during a national dialogue on "Accelerating Decentralization, Improving Transparency, and Mobilizing Resources, organized by USAID Local Empowerment for Accountability and Decentralization (LEAD) and the Ministry of Finance Development Planning (MFDP).
USAID LEAD is a five-year project launched May 19, 2023, to enhance the capacities of targeted ministries, agencies, and commissions as well as local government: the Ministry of Finance Development and Planning, Liberia Revenue Authority (LRA), and the Ministry of Internal Affairs, Governance Commission, and civil society.
The project's work in Grand Bassa, Bong, and Nimba counties aims to foster the development of robust tax policies, enhance budgetary transparency, promote decentralization, and improve service delivery at the sub-national level by bolstering domestic resource mobilization efforts.
"Our objective with this initiative is to partner with the government of Liberia to generate increased resources, improve fiscal transparency, and support decentralization to ensure essential services reach Liberians in even the most remote corners of the country, Rodriguez said.
Rodriguez lauded President Joseph N. Boikai's administration's call for public sector audits but noted that the government should act on the findings and recommendations of audit reports, including prosecuting individuals guilty of fraud, waste, or abuse of public resources.
"While the U.S. government is pleased to support this effort, we want to be clear that the government of Liberia is in the driver's seat," she said. "The government of Liberia must demonstrate a culture of accountability."
She called on the Liberian Legislature to pass the pending Value Added Tax Bill because it can potentially increase the country's revenue by 40 percent to reach $1 billion by 2027. Revenue generated through the VAT system can support Liberia's development needs, such as paying teachers and doctors, improving schools and hospitals, and building roads. The VAT bill, she said, is a step in the right direction because it aligns Liberia with best global practices.
She also praised President Boikai for his commitment to creating the Ministry of Local Government to further Liberia's "long-stalled decentralization process." She said decentralization would help the government provide essential basic services at the local level, ensuring that all citizens see tangible benefits from the taxes they pay in remote corners of the country. The money will support the development of new schools and clinics or provide electricity and support the county service centers, which are not functioning because of the lack of equipment and low employee capacity. She said locally generated revenues can help county councils implement their mandates.
"We look forward to engaging the government of Liberia to overcome these challenges in a way that benefits all citizens," she said.
In his remarks, Internal Affairs Minister Francis Sakala Nyumalin reiterated President Boakai's commitment to accelerating the decentralization efforts to foster inclusive governance and ensure equitable national development.
He said the Ministry of Local Government would not run parallel to the Ministry of Internal Affairs and that the act that created the MIA would be repealed.
"With the technical and financial support we need, we hope to achieve this transition before the end of the year," he said.
In his remarks, LRA's Commissioner, General J. Dorbor Jallah, said he is optimistic that Liberia can raise $ I billion in revenue by expanding the revenue-collection base, cracking down on corrupt practices, and passing the VAT bill. He also pledged to act on LRA employees caught taking bribes from people who want to avoid paying the correct taxes.
"The only way we can be masters of our development is to raise revenue," Jallah said. He said Liberia has enough natural resources to support its population, but those resources are mismanaged because of corruption. Since he took over the LRA, Jallah said he has been bombarded with calls from business people offering dinner and gifts. "Why didn't they invite me for dinner before," he said. "If we stop waste and abuse, we will raise $1 billion in revenue."
MFDP's Deputy Minister for Budget and Development Planning Tanneh Brunson thanked USAID for its continued support of Liberia's development. The USAID LEAD project is a step in the right direction. She encouraged the project to work with relevant counterparts to enhance local government capacity, strengthen domestic resource mobilization at the sub-national level and the public financial management system, and increase citizen participation in local governance.
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USAID LEAD Chief of Party George Akl said the project will strengthen local institutions, promote citizen participation in decision-making, enhance budget transparency, strengthen revenue collection, and promote financial management.
"Accelerating decentralization, improving fiscal transparency, and increasing domestic resource mobilization, we pave the way for a more prosperous and accountable Liberia, Akl said. Let us join hands in this noble endeavor, knowing that our collective efforts will shape a brighter future for Liberia."
The national dialogue brought together 100 stakeholders from civil society, local and national leaders, the Legislature, integrity institutions, and the private sector. After the opening ceremony, technical leads from various institutions broke into several working group sessions to discuss strategies to increase revenue, citizen participation in the budget process, fiscal decentralization implementation, tax expenditure, and the VAT system.
