Monrovia — An audit conducted by the General Auditing Commission (GAC) has revealed serious financial irregularities within the National Road Fund (NRF), including the unauthorized establishment of 12 bank accounts and the disbursement of US$379,600 and L$123.6 million without approved vouchers.
The findings represent a violation of Liberia's Public Financial Management (PFM) Law and have raised concerns over the NRF's financial practices.
The GAC audit identified that the NRF management had established 12 bank accounts without authorization, which led to the disbursement of significant funds without the necessary approved vouchers.
This action, according to the GAC, is a direct breach of the PFM Law, which mandates strict adherence to financial protocols to ensure transparency and accountability in government operations.
In response, the current Road Fund manager, Joseta Neufville-Wento said the actual number of accounts opened by her predecessor are 18. Neufville said she and her team are working on some innovative ideas to not to repeat the mistake of her previous colleague.
The audit also uncovered overpayments for goods and services totaling US$7,483.65.
According to Regulation B.30 of the PFM Act of 2009, any expenditure exceeding the actual amount due must be recovered immediately and paid into the government's revenue account.
The NRF management has yet to provide a justifiable reason for this overpayment, raising further questions about the oversight and control of financial transactions within the organization.
Delayed Bank Reconciliation
Another significant finding from the audit was the delay in performing monthly bank reconciliations for the fiscal year 2018/2019.
The PFM Regulation R.3 sub-regulation 6 requires that the balance of every bank account be reconciled with the corresponding cashbook balance at least once a month.
However, the audit revealed that these reconciliations were not performed until 2020, nearly two years late. The NRF management has been asked to explain the reasons for this delay, which could indicate deeper issues in financial management.
Failure to Apply Penalties on Delayed Payments
The audit further highlighted the NRF's failure to enforce penalties on delayed payments, as required by the National Road Fund Act of 2016 and the Revenue Code of Liberia.
The Auditor General observed a significant debt of US$44,446,962 owed by importers to the NRF, with no measures taken by the NRF management to apply penalties to those who delayed or refused to pay the road user charges.
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He added this inaction may have contributed to the substantial outstanding debt and undermines the effectiveness of the NRF in enforcing its financial policies.
The GAC's audit of the National Road Fund has uncovered a series of financial irregularities, raising serious concerns about the management and operational integrity of the organization.
The NRF's unauthorized establishment of bank accounts, overpayments, delayed bank reconciliations, and failure to apply penalties on delayed payments point to a need for immediate corrective action.
The NRF management is now under pressure to provide justifiable reasons for these lapses and to implement measures to prevent such issues in the future.
