Published: September 5, 2025
MONROVIA – Liberia’s finance minister, Augustine Kpehe Ngafuan, faces criticism after auditors said his ministry paid out roughly US$2.8 million without proper documentation. However, the same audit found that financial discipline has significantly improved since the previous year and stopped short of labeling the accounts as untrustworthy. Ngafuan, who assumed office in 2024, is now working to correct sloppy record-keeping while reminding critics that the most serious issues existed before he took office.
News Analysis by Lennart Dodoo
What the audit actually found
The GAC’s management letter for fiscal year 2024 identified $2,850,035.38 in payments that lacked “adequate supporting documents” such as invoices, receipts, contracts, or delivery notes. Auditors warned that without documentation, the “validity, occurrence and accuracy of payments may not be assured,” which increases the risk of misappropriation. A separate finding revealed $2,806,470 in expenditures that exceeded the National Budget appropriations and lacked evidence of legislative approval. Together, these figures amount to roughly $2.8 million, now a headline figure associated with Ngafuan.
However, the same report noted that the ministry disbursed over US$78 million less than planned to other ministries and agencies due to cash flow constraints. The audit also commended the adoption of international public-sector accounting standards and acknowledged that the ministry submitted its financial statements on time. Additionally, the audit opinion was qualified but not adverse; auditors concluded that, except for the identified issues, the consolidated fund account “present[s] fairly, in all material respects,” the government’s financial position. This marks a significant improvement from the adverse opinion issued for fiscal year 2023, when auditors stated that the statements did not provide a true and fair view because of widespread irregularities (the adverse opinion is detailed in the GAC’s 2023 report).
Improvements since FY 2023
During FY 2023, the GAC identified US$4.27 million in payments lacking sufficient supporting documents and noted US$96.14 million in spending that exceeded budget approvals (the 2023 management letter details the variance of actual spending over the approved appropriation). Auditors also flagged US$2.817 million in transfers to institutions and private entities that were not included in the budget, including subsidies to several schools and a US$2.5 million contribution to the PHP Beach Park project. Borrowings exceeding US$83 million lacked legislative resolutions, and over 470 government bank accounts were unreconciled.
By contrast, the FY 2024 audit shows a marked reduction in unsupported payments and unapproved spending. The amount of payments lacking documentation fell from US$4.27 million to US$2.85 million, while excess expenditures above the approved budget dropped from US$96.14 million to US$2.81 million. Borrowings now come with resolutions from the legislature, and the auditor general’s report noted that most government bank accounts have been reconciled. These improvements are reflected in the change from an adverse opinion in 2023 to a qualified opinion in 2024.
Comparing FY 2023 and FY 2024 findings
| Category | FY 2023 finding | FY 2024 finding (Ngafuan era) |
| Audit opinion | Adverse – statements did not give a true and fair view. | Qualified – statements fairly present the government’s position except for specific issues. |
| Unsupported payments | US$4.27 million lacked invoices/receipts. | US$2.85 million lacking documents, attributed partly to archiving issues. |
| Spending beyond appropriation | US$96.14 million spent above the budget. | US$2.81 million spent above appropriations. |
| Off‑budget transfers | US$2.817 million transferred to entities not listed in the budget. | The FY 2024 report did not flag additional off‑budget transfers but focused on under‑disbursements. |
| Borrowings | Large borrowings lacked legislative resolutions. | Borrowings backed by legislative approvals and disclosed in the notes. |
| Bank account reconciliation | Hundreds of government bank accounts unreconciled. | Majority of accounts reconciled; remaining flagged for closure or audit. |
The trajectory suggests the ministry is moving toward stronger fiscal discipline. This improvement has taken place under Ngafuan’s watch, though much of the groundwork began under his predecessor. As a career technocrat, Ngafuan previously served as finance minister from 2008 to 2012 and later as foreign minister. He is now tasked with steering a fragile economy while implementing the Unity Party’s manifesto commitments.
The ministry’s explanation
In response to media coverage of the GAC report, the Ministry of Finance, through Comptroller and Accountant General Edwood Netty, argued that the flagged transactions are not evidence of missing money but rather a documentation issue. Netty said many transactions originate from county-based offices, such as rural health centers and local government units, which submit bulk reports to sector ministries. Original invoices and receipts are kept by those ministries for audit purposes, while copies are sent to the MFDP for payment processing. Because the General Auditing Commission gave the finance ministry only five days to produce documentation, retrieving every record was difficult. Netty emphasized that “the flagged amounts are largely due to challenges in archiving and document retrieval” and that all original documents are available in hard copy.
To address the issue, the ministry has initiated the implementation of an Electronic Document Management System (EDMS). The system will digitise and index all incoming and outgoing documents, enabling rapid access for auditors and reducing reliance on manual filing. “This reform is part of our broader strategy to modernise internal systems, promote transparency, and ensure that Liberia’s public finances are audit-ready,” Netty stated. The EDMS is expected to integrate with the existing financial management system and to improve reporting accuracy.
The ministry also responded to the excess‑expenditure finding. In its response annexed to the management letter, officials cited Public Financial Management Regulation 8.1 & 8.2, which allows the deputy minister of budget to reallocate appropriations under certain conditions. They argued that the extra US$2.8 million was the result of approved reallocations to meet urgent operational requirements of entities such as the Ministry of Public Works and the National Road Fund. However, the auditor general maintained that the ministry failed to provide evidence that the reallocation was approved by the legislature.
Structural challenges behind the numbers
The government still uses a cash‑basis accounting framework and a largely manual document workflow. When local offices purchase fuel for a rural health centre or pay community teachers, the invoices often remain in the county. Modern financial systems rely on real-time document scanning and digital signatures; Liberia is only now rolling out such tools. The EDMS initiative could drastically reduce the time needed to produce supporting documents and improve transparency.
Additionally, the Public Financial Management Act is complex and sometimes contradictory. On the one hand, Section 24 requires legislative approval for excess expenditure; on the other, Regulation 8 permits intra-year reallocations under certain conditions. In practice, finance ministers must juggle competing demands from ministries and legislators amid unpredictable revenues. The FY 2024 National Budget anticipated US$738.86 million in resources, according to the auditor general’s report. Sharp fluctuations in commodity prices, donor disbursements and tax collections can quickly render approved budgets obsolete, forcing the ministry to prioritise essential services like road maintenance or payroll. Critics should acknowledge this fiscal tightrope even as they demand stronger controls.
Political considerations
Finance ministers in Liberia operate under intense political scrutiny. Ngafuan’s appointment by President Joseph Boakai was widely interpreted as a signal that the new administration wanted seasoned hands to stabilise the economy. However, the Unity Party also campaigned on anti-corruption and promised to open the books on past malfeasance. That places Ngafuan in an awkward position, defending his ministry against audit criticisms while pushing for reforms.
Opposition figures have seized on the US$2.8 million figure to allege graft. In the hyper‑polarised post-election environment, nuance often gets lost. Yet the audit reports show that the largest instances of fiscal indiscipline occurred before Ngafuan’s tenure—including the unsanctioned US$2.817 million in transfers to private institutions and the US$96 million overspend in 2023. As a former finance and foreign minister, Ngafuan knows he will be held to a higher standard than his predecessors. He must resist the temptation to blame the past and instead articulate a clear plan to fix the system.
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