The U.S. Department of State 2024 Fiscal Transparency Report on Liberia offers a mixed assessment, recognizing both progress and areas requiring attention in the country's fiscal management and transparency efforts.
The report highlights that Liberia has made significant strides in improving fiscal transparency, noting the government has improved its timeliness in publishing end-of-year reports and has made budget proposals available to the public in a timely manner.
The report also notes that basic information related to natural resource extraction awards is now publicly accessible, marking a positive development in the transparency of the country's resource sector.
The General Auditing Commission (GAC) is also commended for having adequate powers to directly access the national budget in time, which helps to ensure proper oversight of the government's fiscal management.
However, the report flags several areas of concern, including the government's continued use of off-budget accounts, which are not subject to audits or oversight.
The report says this practice raises significant concerns about the transparency and accountability of public spending. Additionally, the government did not disclose earnings from state-owned enterprises, further reducing transparency in public financial management.
Despite the GAC's powers to access the budget, the report points out that the commission still falls short of international independence standards, potentially limiting its effectiveness in holding the government accountable for its fiscal decisions.
Further concerns include the government's failure to make the enacted budget publicly available in a reasonable timeframe, which hinders public access to critical financial information. The report also notes that information on national debt is not easily accessible or widely disseminated, which limits public understanding and oversight of Liberia's financial obligations.
It points to ongoing corruption and inconsistent application of regulations, particularly in awarding natural resource contracts, noting that these problems suggest persistent challenges in governance and the rule of law.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Covering the period from January 1 to December 31, 2024, the report acknowledges Liberia's progress in fiscal transparency but emphasizes the need for further improvements.
It underscores that addressing the concerns around off-budget accounts, lack of disclosure of State-Owned Enterprises or SOEs' earnings, and persistent corruption would go a long way in strengthening public trust and enhancing the government's overall accountability in fiscal management. Editing by Jonathan Browne
