Liberia: Rep. Bility Expresses Dismay Over House's Decision to Grant President Boakai's Budget Approval Request

Representative Musa Hansan Bility (District #7, Nimba County), has expressed his disappointment and frustration over the House of Representatives' decision to grant President Joseph Boakai's request to approve US$41.3 million for the use in February to avoid government shutdown.

The decision was reached on Tuesday following recommendation from the joint committee on Ways, Means, Finance and Public Accounts and Expenditure.

While the majority of the lawmakers in session backed the President's request, and forward to the Senate for concurrence, Rep. Bility voted against the plenary's decision on grounds that it lacks any legal backing.

Prior to plenary's decision, he called for the President's request to be rejected in a detailed communication to the Speaker.

In his communication, he said the President's request lacks detailed explanation and breakdown of the budget items. According to Rep. Bility, the document that was presented to the Honorable house and read in Plenary was a two-page document which included a cover letter and a budget summary. This summary, he noted, did not include details on each budget line item, which would provide clarity and transparency on the budget.

He said" "For instance, the budget summary includes payments of Debt Servicing in the amount of Five Million Seven Hundred Thousand United States Dollars (US$5,7000.000.00) but falls short of outlining what specific debts are to be paid out of the requested amount. It is important that a copy of the detailed budget is provided to this body for review and to further inform our decision on its approval."

He also cited the lack of explanation as to why the Executive has not submitted an amended FY 2024 National Budget, stating that Section 22 of the Amended Public Financial Management Act pre-supposes that the budget approval process has been delayed for valid reasons and, as such, allows for expenditure pending the finalization of the Budget.

In December 2023, the outgoing 54th Legislature failed to act on the proposed national draft budget to the tune of US$625,570,000 submitted by the outgoing George Weah Administration. The Legislature sent back the proposed financial envelope, and requested the incoming Boakai-Koung administration to review and resubmit. The Weah administration, with 22 more days left to leave power, invoked the Public Financial Management Law to continue the government's operations.

The law states that "in the case where the Legislature is unable to approve the National Budget before the start of the fiscal year, the Minister is authorized to collect revenues and approve expenditures, in line with the proposed budget, up to one twelfth (1/12) of the Budget of the previous fiscal year. Expenditure of said (1/12) by the Minister shall be included in the subsequent financial outturn".

One-twelfth of the approved Fiscal Year 2023 budget of US$782,940,000 would amount to US$66,078,333 as per the provision of the PFM Law.

Bility further named lack of adherence to the PFM Act as one of the reasons for rejection. Bility noted that this exception was not intended for arbitrary application and should not be used for reasons that are not justified, albeit the prerogative of the Executive. "To date the Executive has not submitted and the Legislature has not received an amended FY2024 National Budget nor an explanation or justification for this lapse."

He furthered that in the absence of the applicable provision of the PFM Law, there appears to be no legal basis stated for the request of this US$41 million budget.

According to him, the framers of the existing laws, in their wisdom, considered the anticipated delays in the governance system and provided for such delays under Section 22 of the Amended PFM Act. As current lawmakers, stated that their actions must be based on legal authority to act and we must ensure that any such action is backed by law.

"What is the legal basis for the Executive to not submit an Annual Budget for FY 2024, not utilize the 1/12 provision for February but yet request a budget of US $41 Million Dollars? Is this request in addition to the 1/12th?

"These questions require answers. For these reasons, as I did in Plenary, I am again urging my colleagues of the House to withdraw the budget request from the Committee and send it back to the Executive with recommendations to address these concerns and on how to proceed thereafter.

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