Capitol Hill — It was a long day for Liberia's Finance Minister Augustine Kpehe Ngafuan during his appearance before the Liberian Senate, where he failed to convince senators on how the funds allocated to the Karpower deal were used.
The 2025 Approved National Budget has come under intense scrutiny following revelations that US$374,379 was allocated to the Turkish Karpowership deal in FY2024, despite the government rejecting the agreement. The amount, listed under the "outturn" section on page 278 of the budget, has raised serious concerns about how the funds were used.
The Ministry of Finance and Development Planning (MFDP) maintains that no disbursement was made, raising concerns about why the amount was listed as an outturn. If the money was indeed disbursed, where did it go?
Following FrontPage Africa's publication, the Senate included the Karpower allocation--previously not on the agenda--in its deliberation with Minister Ngafuan when he appeared before the Senate's full plenary on Tuesday.
Maryland County Senator Gbleh-bo Brown claimed that the executive branch did not adhere to the Senate's decision to remove budgetary allocation for Karpower.
"The MFDP still kept Karpower in the budget and used that budget in excess. But they are saying they did not use the money for Karpower. What did they use it for? Why did the MFDP keep the US$374,000 allocated to Karpower? Where did the money go?"
Addressing the Senate, Ngafuan reiterated the Ministry's response to FrontPage Africa, stating that "not a dime was spent on the Karpower project."
He said the money was diverted to the Liberia Refugee Repatriation and Resettlement Commission (LRRRC) for the repatriation and resettlement of Liberian refugees from Ghana.
As Minister, he said he inherited a plethora of legacy problems at the ministry, but with the support of his team, they are working to address them. He also noted that the budget for contingency is very low, but the government must ensure funds are available to execute other unexpected functions, such as by-elections.
"Not a dime was spent on Karpower. The budget has appropriations, and those appropriations are intentions. Over the course of the budget year, new priorities emerge. For instance, we did not budget for a by-election in Nimba, but constitutionally, it must be held. Based on the outcome, another by-election might be required. We need a budget for it, and we have to deal with it."
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Minister Ngafuan explained that when these issues arise, the MFDP looks at existing appropriations to serve as funding sources to address them.
He further clarified that the US$3 million allocated annually for the renovation of the Executive Mansion was never stolen but was instead redirected to address other issues by the Ministries of Public Works and State for Presidential Affairs.
"Some of the demonstrations you see, when they escalate, require us to use state contingency funds. These appropriations are used to manage such situations. Again, not a dime was expended on Karpower."
Senator Brown earlier described the manner in which the national budget is presented to the National Legislature as "deception."
He argued that funds approved, passed, and signed into law by the National Legislature and the President are being expended for different purposes under the pretense of acting in accordance with the law.
Unconvinced by Ngafuan's explanation, the Senate rescheduled his appearance. In a motion, Senator Geevon Smith stated that it appeared the minister was unprepared, as the Karpower deal was not the principal reason for his appearance but was only raised due to FrontPage Africa's publication.
