Monrovia — A damning compliance audit by the General Auditing Commission has uncovered sweeping irregularities in Liberia's government revenue collection system, with hundreds of millions of United States dollars and tens of billions of Liberian dollars either untraceable or improperly reconciled across key government financial institutions.
The report, signed by Auditor General P. Garswa Jackson Sr., presents an adverse conclusion on the management and reconciliation of tax revenues collected through government transitory bank accounts and the Consolidated Account between July 1, 2018, and December 31, 2024. The GAC noted that it derived an adverse conclusion because auditors found serious weaknesses and unreconciled discrepancies in government revenue records that materially affected confidence in the accuracy and integrity of the system.
The audit examined the operations of the Ministry of Finance and Development Planning, the Liberia Revenue Authority, and the Central Bank of Liberia.
In a transmittal letter addressed to the leadership of the Liberian Legislature, Auditor General Jackson warned that the gravity of the findings requires urgent intervention by lawmakers.
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"Because of the significance of non-compliance matters noted... the subject matter is not in all material respect in compliance with the Revenue Code of Liberia, the Public Financial Management Act, and other applicable regulations," the report stated.
Audit Targets Government Revenue Chain
According to the report, the audit focused on the entire revenue collection and remittance process -- from taxes collected through the Tax Administration System (TAS) and the Automated System for Customs Data (ASYCUDA) to remittances through commercial banks, mobile money systems, and the Government of Liberia's consolidated revenue accounts.
Under Liberia's Public Financial Management framework, taxes collected by the LRA are first deposited into transitory accounts at commercial banks before being swept into the government's consolidated account at the CBL within 24 hours.
However, auditors found major gaps in how those revenues were tracked and reconciled.
"The completeness, existence, and accuracy of revenue recorded in the transitory bank accounts and GRA may not be assured," the report warned. "This may facilitate fraudulent financial reporting of revenue and misappropriation of public funds."
US$257 Million Could Not Be Traced
Among the most alarming findings, the audit revealed that revenue totaling US$257.5 million and more than L$23.6 billion recorded in transitory bank accounts could not be traced to the General Revenue Accounts.
Conversely, another US$165.7 million and over L$10.9 billion recorded in the General Revenue Accounts could not be traced back to the transitory accounts.
The audit also found major discrepancies between revenue recorded in the government's Tax Administrative System (TAS) and the General Revenue Accounts (GRA).
According to the report, revenues amounting to nearly US$1.79 billion and L$54.3 billion recorded in the Tax Administrative System could not be matched to entries in the General Revenue Accounts. Another US$1.37 billion and L$68.3 billion recorded in the General Revenue Accounts could not be traced to Tax Administrative System records.
Auditors further reported unreconciled variances totaling US$373.9 million and approximately L$16.7 billion.
Customs, Tax Systems Under Scrutiny
The report highlighted significant irregularities within customs and tax processing platforms, particularly the Automated System for Customs Data and the Liberia Integrated Tax Administration System (LITAS).
Auditors identified discrepancies of more than US$63.9 million between bills and payments recorded in the Automated System for Customs Data. Some payments reportedly lacked receipt numbers altogether, while auditors said they were unable to reconcile bills to payments in the Integrated Tax Administration System because the transaction currencies could not be determined.
Additionally, revenue receipts worth US$26 million recorded in the Automated System could not be traced to the Integrated Tax Administration System, while another US$68.5 million recorded in the Integrated Tax Administration System could not be traced back to ASYCUDA.
The report also cited instances where identical receipt numbers appeared in both systems but reflected different amounts.
Unauthorized Withdrawals, Suspicious Reversals
The GAC audit uncovered several unauthorized withdrawals from government transitory accounts amounting to US$59,786 and L$551,773.
These transactions were categorized as "other debits" and reportedly included unexplained deductions such as school fee payments and online transfers.
Auditors also flagged negative debits totaling more than US$301,000 and L$67.2 million, which could not be linked to any original transactions or supported by documentation indicating they were legitimate adjustments.
Further concerns were raised over reversal transactions in both the transitory accounts and the General Revenue Accounts.
According to the report, reversal entries totaling US$16 million and L$501 million in the transitory accounts, along with another US$37.4 million and L$1.9 billion in the General Revenue Accounts, could not be verified because supporting descriptions and references to original transactions were either incomplete or absent.
"As a result, we could not trace the initial transactions adjusted, nor could we validate the authenticity of the reversal transactions," the audit noted.
Banks Failed to Meet Remittance Deadlines
The audit also accused commercial banks of routinely failing to transfer government revenues within the required timeframe.
Under existing agreements, revenues collected into transitory accounts are supposed to be remitted to government accounts within 24 hours. However, the GAC found that remittance delays ranged from three to 24 days throughout the audit period.
No commercial bank, according to the report, consistently complied with the 24-hour requirement.
Rural Revenue Collection Described as Weak and Vulnerable
The report paints an especially troubling picture of revenue collection practices in rural Liberia, where auditors say manual processes and cash handling continue to dominate.
Among the issues identified manual issuance of tax bills, cash payments held by collectors for prolonged periods, bulk deposits masking individual taxpayer transactions, lack of automated systems at rural collectorates, and absence of reconciliation between bills, collections, and deposits.
The audit found no evidence that ASYCUDA and LITAS had been fully expanded and operationalized at rural customs and tax collection points to allow for real-time monitoring and accountability.
No Clear Revenue Reconciliation Policy
The GAC further criticized the absence of a comprehensive government revenue reconciliation framework among the MFDP, LRA, and CBL.
Auditors said there was no clear policy outlining institutional responsibilities for reconciling government revenues, creating gaps in oversight and accountability.
The report also noted widespread deficiencies in transaction documentation, including the absence of taxpayer names, tax identification numbers, tax categories, payment periods, and unique transaction identifiers across several government systems.
Millions Left Sitting in Transitory Accounts
Auditors additionally found that significant balances remained in government transitory accounts instead of being swept into the consolidated government accounts.
As of January 1, 2024, balances of US$898,563 and L$60.7 million remained in the accounts. By December 31, 2024, balances of US$574,765 and L$58.9 million were still sitting in the accounts.
The audit further noted that the transitory accounts had not been closed as required and remained operational at the time auditors completed their work.
Excessive Bank Charges Also Flagged
The report cited several instances of excessive bank charges imposed on government transitory accounts in violation of Memoranda of Understanding signed between the Liberia Revenue Authority and commercial banks.
Auditor General Jackson warned that the cumulative effect of the irregularities has severely undermined confidence in the integrity of Liberia's public revenue management system.
"The above issues have a pervasive impact on the management of the government's transitory revenue accounts and the General Revenue Accounts," the report concluded, adding that the findings raise "serious concerns" about compliance with Liberia's financial laws and standards.
'Variances Are Common'
In response, the Liberia Revenue Authority, Ministry of Finance and Development Planning, and Central Bank of Liberia defended the discrepancies, insisting that variances between transitory bank accounts and government revenue accounts are "common" and operational in nature.
They argued that differences between revenues recorded in commercial bank transitory accounts and the General Revenue Accounts are expected due to operational realities within Liberia's revenue collection system.
According to management, some revenues are paid directly through the Central Bank of Liberia's collection window and therefore would not appear in the transitory accounts maintained at commercial banks.
"Variances between cash receipts recorded in the transitory accounts and General Revenue Accounts and those reported in the General Revenue Accounts at the Central Bank of Liberia are common and can occur for several operational reasons," management stated in its official response.
Officials further explained that revenues from commercial bank transitory accounts are often transferred to the GRA through bulk "sweeps," making it difficult to match individual transactions from commercial banks directly to entries in the General Revenue Accounts.
Management insisted that all sweep transactions from the transitory accounts could ultimately be found within the government's consolidated accounts.
The institutions also noted that certain revenues tied to vendor-sharing arrangements are distributed among the Government of Liberia, vendors, and commercial banks, which may contribute to reconciliation complexities.
Tripartite Reconciliation Process Cited
The LRA, MFDP, and CBL additionally pointed to an existing "Tripartite arrangement" involving technical staff from all three institutions.
According to management, daily revenue credits to the General Revenue Accounts are jointly reviewed, analyzed, and validated by technical teams from the three agencies before being formally endorsed by their respective heads.
"These duly signed Tripartite revenue reconciliation documents are maintained on record and available for verification and authentication as required," management stated, referencing daily CBL General Revenue Account statements as evidence.
The institutions maintained that the collaborative review process is intended to ensure consistency, accuracy, and mutual verification of government revenues.
Auditor General Rejects Explanation
Despite those explanations, Auditor General P. Garswa Jackson Sr. said the government's response failed to adequately address the discrepancies uncovered during the audit.
According to the GAC, auditors reconciled total credits recorded in transitory accounts against total sweep transactions reflected in the General Revenue Accounts and still identified unresolved variances amounting to US$91,803,427 and L$12,674,732,056.56.
The Auditor General also dismissed management's suggestion that timing differences or delayed remittances could explain the discrepancies.
"Our reconciliations were prepared on a post-period basis; therefore, discrepancies relative to the timing of remittance or recording of revenue transactions are not applicable contrary to management's assertions," the report stated.
The GAC further noted that transactions traced from the General Revenue Accounts back to transitory accounts were already classified as sweep debits, meaning they should have reconciled if records were complete and accurate.
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As a result, Auditor General Jackson said the commission would maintain its findings and recommendations and would continue monitoring implementation during future audits.
Weak Systems, Manual Processes Raise Red Flags
The audit also raised concerns over outdated and fragmented systems used in Liberia's revenue collection architecture.
Auditors noted there was no evidence of a fully integrated revenue reconciliation framework linking the Tax Administration System, transitory bank accounts, and the Integrated Financial Management Information System (IFMIS).
The report recommended the creation of an automated revenue receipt module within IFMIS to allow real-time tracking and reconciliation of revenues.
It further urged management to implement daily automated reconciliation between TAS, commercial bank transitory accounts, and the General Revenue Accounts.
The GAC warned that failure to establish such systems leaves Liberia vulnerable to undetected revenue losses and financial manipulation.
Key Officials Named in Audit Period
The report identified several senior officials who managed the affairs of the LRA, MFDP, and CBL during the audit period.
They include current LRA Commissioner General James Dorbor Jallah, the late former LRA Commissioner General Thomas Doe Nah, current Finance Minister Augustine Kpehe Ngafuan, former Finance Minister Samuel Tweah, and current CBL Executive Governor Henry F. Saamoi.
Former CBL governors Milton Weeks, Nathaniel R. Patray, and J. Aloysius Tarlue were also listed among officials serving during the audit period.
Legislature Urged to Act
The audit was submitted to the Liberian Legislature in April this year with a call for urgent action.
Auditor General Jackson emphasized that the findings reveal systemic weaknesses in Liberia's revenue collection and reconciliation systems that require immediate corrective measures.
The report warned that unless the government strengthens automation, improves reconciliation processes, and enforces stricter oversight, public confidence in Liberia's financial management system could continue to erode.
Concerns Over Transparency and Accountability
The unresolved discrepancies form part of broader concerns raised in the audit over Liberia's public financial management system.
The report warned that discrepancies and incomplete records increase the risk of undetected revenue losses, fraudulent financial reporting, and possible misappropriation of public funds.
Auditors also expressed concern that management may not have disclosed all transitory and general revenue accounts during the audit process.
The GAC has recommended the establishment of an automated revenue reconciliation module within the government's Integrated Financial Management Information System (IFMIS), as well as daily automated reconciliation between the Tax Administration System, commercial bank transitory accounts, and the General Revenue Accounts.
