Published: September 20, 2024
Capitol Hill – House Speaker Fonati Koffa has voiced concerns over the country’s budgetary process, declaring that the Legislature has “lost control of the budget process” during the passage of Liberia’s 2024 recast budget. Cllr. Koffa, in a passionate address to lawmakers, called for sweeping reforms to regain legislative authority over national finances, which he argued had been eroded by existing laws.
The Speaker was particular about the off-budget spending of about US$16m introduced by the Minister of Finance & Development Planning.
“We have lost control of the budget process because the PFM law gave legislative authority to a non-elected officer, the Minister of Finance, to play in the budget at will, at his own caprices. This must be ended and must be changed,” Cllr. Koffa stated emphatically during the session.
The 2024 recast budget, which adjusts the national financial framework for the year, passed amid controversy over allegations of off- budget spending and alterations by the Executive branch. Koffa was particularly critical of the role played by the Minister of Finance, stating that the Public Financial Management (PFM) law had transferred too much control away from the Legislature.
The Speaker further accused the Executive branch of violating financial laws, revealing that certain budget expenditures were made without following the legal process. “All budget spending without the requisite adherence to the laws governing all budget spending is illegal and unlawful,” Koffa declared. He noted that the Legislature had no jurisdiction to pardon or waive such violations, sending a stern warning about the need for accountability.
Koffa’s comments reflect widespread concerns about the Legislature’s reduced role in managing the nation’s finances. He called on the House to take back control by amending the PFM law to ensure that future budgets are handled with greater oversight and transparency.
In his address, Koffa pushed for the creation of a budget resource committee that would design a clearer, more accountable path forward for the budget process. “We must ensure that the budget we manage in coordination with the Executive is one of accountability and transparency,” Koffa said, emphasizing the need for strict scrutiny of financial management.
The Speaker also highlighted the need to reform how the budget is received and transmitted to the Legislature, as well as the accountability measures imposed on the Executive during the budget’s execution. “The 2025 budget cannot be spanned without adjustment and amendment to the PFM law,” he stressed, underscoring the urgency of restoring the Legislature’s full authority over the budget.
While the Speaker’s call for reform was met with general support, not all lawmakers were in favor of passing the recast budget in its current form. Some expressed concerns about voting to endorse a budget that had been accused of containing unlawful expenditures. Despite this, Koffa urged his colleagues to pass the budget and focus on reforms moving forward.
“Even for those of you who are not going to vote for passage, I ask you to reconsider. We cannot hold our budget passage to a process that we don’t need there, and we are responsible to reform and get ahead of,” Koffa said.
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