The Government of Liberia has acknowledged significant weaknesses in its revenue collection and reconciliation systems following the release of a comprehensive compliance audit by the General Auditing Commission (GAC), covering the period July 1, 2018 to December 31, 2024, while also addressing public concerns, institutional reforms, and wider speculation linked to the report.
The joint press conference was held by the Ministry of Finance and Development Planning (MFDP), the Liberia Revenue Authority (LRA), and the Central Bank of Liberia (CBL), and featured Finance Minister Augustine Kpehe Ngafuan, Central Bank Governor Henry F. Saamoi, and Liberia Revenue Authority Commissioner General James Dorbor Jallah.
Finance Minister Ngafuan, speaking on behalf of the three institutions, described the audit as a major milestone in strengthening transparency and public financial integrity.
"Nearly a month ago, the Auditor General released the General Auditing Commission's compliance audit report on the Government of Liberia revenue collection and reconciliation processes for the period July 1, 2018 to December 31, 2024," Ngafuan said. "This audit marks an important milestone in the Government's ongoing efforts to strengthen transparency, accountability, and public financial integrity."
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He said the purpose of the briefing was to provide context to the findings, explain the circumstances that led to the audit, and outline corrective measures already taken and those ongoing across the revenue system.
Ngafuan disclosed that the process began in late 2024 when the MFDP, LRA, and CBL detected discrepancies between revenue recorded in the Tax Administration System (TAS) and deposits reflected in the Government's Consolidated Revenue Account at the Central Bank of Liberia.
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."
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.
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.
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 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.
"As custodians of public trust, we could not -- and would not -- ignore these concerns. We took immediate and decisive action," the Minister said.
He explained that on January 6, 2025, he formally requested an independent investigation from the Auditor General into the discrepancies, a move fully supported by both Governor Henry F. Saamoi and Commissioner General James Dorbor Jallah. The GAC, he noted, was already conducting an audit covering 2018 to 2023 and later agreed to extend the scope through 2024 to ensure a comprehensive review.
Although the audit was initially expected by mid-2025, Ngafuan said the GAC requested additional time to complete what it described as a meticulous and technically rigorous process, which the government accepted in the interest of credibility.
The audit identified multiple systemic weaknesses across Liberia's revenue reconciliation framework, including discrepancies between Transitory Bank Accounts (TBA) and the General Revenue Account (GRA), inconsistencies between the Tax Administration System (TAS) and GRA records, variances between ASYCUDA and LITAS systems, differences between customs receipts and tax records, unauthorized withdrawals from transitory accounts, irregular reversal transactions in both TBA and GRA accounts, and delays in remitting funds from transitory accounts to the national revenue account.
"These findings confirm the existence of systemic weaknesses, reconciliation gaps, and operational deficiencies across the revenue collection and settlement chain," Ngafuan stated.
He said the government has reviewed and endorsed the audit's recommendations and has briefed President Joseph Nyuma Boakai, who has directed that the report be forwarded to the Ministry of Justice and the Liberia Anti-Corruption Commission for further investigation to determine whether the findings indicate fraud and ensure accountability where necessary.
Governor Henry F. Saamoi of the Central Bank of Liberia emphasized the Bank's commitment to strengthening financial controls and improving real-time oversight of government revenue flows, noting that reforms already underway are aimed at eliminating reconciliation delays and reducing manual intervention in public fund transfers.
LRA Commissioner General James Dorbor Jallah also reaffirmed the Authority's commitment to tightening tax administration systems and expanding digital platforms to improve accuracy and transparency in revenue collection, including the continued expansion of ASYCUDA and LITAS across the country.
Ngafuan further outlined reforms already underway even before the audit's release, including revised agreements with commercial banks governing transitory accounts and revenue sweep timelines, as well as strengthened requirements for daily reporting to both MFDP and CBL to improve monitoring and reconciliation.
He said the LRA has expanded the deployment of the Automated System for Customs Data (ASYCUDA) at major customs and border points and is scaling up the Liberia Integrated Tax Administration System (LITAS) across regional offices. ASYCUDA has also been upgraded to Version 4.4 to allow real-time electronic integration with commercial banks and the Central Bank for transaction-level validation.
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According to him, quarterly reconciliation exercises are now institutionalized among revenue agencies, while government is moving toward full integration of major financial systems, including LITAS, SIGTAS, ASYCUDA, IFMIS, transitory accounts, and the General Revenue Account, to enable real-time reconciliation across the revenue chain.
He added that the government is in advanced discussions with private sector experts to support reforms in revenue tracking and reconciliation systems, including John S. Morlu LLC, led by former Auditor General John S. Morlu II, noting that these engagements were intentionally delayed until audit findings were available to guide system redesign.
Ngafuan commended the GAC for what he described as a complex and technically demanding audit process, praising the professionalism, diligence, and courage of the audit team, and reaffirmed full cooperation with ongoing investigations and reforms.
The press conference later turned reflective when Minister Ngafuan addressed a question linking public speculation about the audit to the deaths of former officials, including Albert Peters and Gifty Lama. He dismissed any direct connection to the audit but paid tribute to the late Albert Peters, describing him as a man of integrity and a key figure in Liberia's public financial management reforms.
"I knew Albert Peters to be a man of integrity, a man of character, and a top-notch professional," he said, recalling Peters' contributions to the establishment of the Internal Audit Agency and earlier reforms at the Ministry of Finance and later service within the Liberia Revenue Authority.
"We've lost a great person... and may their blessed souls rest in eternal peace," he said.
Ngafuan concluded by commending the media for its role in public accountability, describing journalists as a critical part of democratic governance, while noting the government's commitment to strengthening economic reporting capacity and public understanding of financial issues.
