Embracing change: the Senate closed yesterday for its regular recess subject to returning to continue the people’s work after the July 26th independence celebrations. I am happy to update you on my midyear accomplishments in the Liberian Senate. The Pro Tempore of the Liberian Senate gave an official update on the Senate’s accomplishments in her closing statement to adjourn our current sitting. These are my contributions to those accomplishments:
National
1. I identified notable inconsistencies between the approved appropriations for Fiscal Year 2024 by the Legislature, the 2024 National Budget Act and as printed, and the Detailed National Budget as printed. The figures provided in the documents do not align as expected. The Senate is investigating.
2. The Senate Public Account Committee (PAC) has released an analysis of the First Quarter 2024 Budget Execution Report to support the Senate and its various committees in their oversight responsibilities. The report reflects the Senate’s commitment to fostering good governance practices and budget transparency. Notably, Tax Revenue surpassed projections in Q1 by 11%, reaching $163.4 million compared to the projected $151.4 million. However, expenditures were lower than anticipated. The Ministry of Finance and Development Planning (MFDP) allocated $144.9 million but disbursed only $77.1 million, accounting for 53% of the allotment in Q1. While this slow disbursement could potentially have a contractionary impact on the economy and the government’s ability to deliver critical services, especially during a period of expected high economic activity (July 26), it is essential to note that factors such as the delayed formation of the government may have contributed to the low spending. Notably, crucial components of the President’s ARREST Agenda, including Agriculture, Roads, and Tourism, received only 1%, 8%, and 1% of disbursement during Q1, respectively. It is imperative to monitor these trends and strive for improvements in Q2 to ensure a more efficient allocation of resources and support the fulfillment of critical government objectives.
3. The 55th Legislature PAC, which I co-chair, has initiated public hearings on around 180 audit reports from the Auditor General. This step underscores the committee’s dedication to promoting accountability and financial transparency.
4. I asked the Senate to investigate the Central Bank of Liberia’s (CBL) practice of issuing guarantees on non-performing loans, advances, deposits, and lawsuits liabilities by Sapelle International Bank Liberia Limited (SIBLL) and Bloom Bank during their purchase transactions. The carte blanche guarantees issued by the CBL Board to cover losses at insolvent commercial banks could potentially increase the Bank’s contingent liabilities and decrease its reserves position. It’s essential for the CBL, as the custodian of our country’s monetary policy, to ensure that it does not function as a charity institution, particularly for foreign-owned banks, in the name of financial stability.
5. I am proud to have introduced the Presidential Transition Act of 2024, the Former Presidents Benefits Act, and 11 Senators. These critical pieces of legislation are focused on promoting a seamless and transparent transfer of state power in Liberia while also providing long-term benefits to former presidents who have completed their terms in office.
6. I followed up on the communication I wrote with Senator Dillon of Montserrado to Plenary back in April regarding the use of pensioners’ funds by the National Social Security and Welfare Corporation (NASSCORP) to purchase Sports Utility Vehicles for the Ministry of State’s use. It is essential to ensure that pensioners’ money is properly used to safeguard their fixed income in retirement, uphold good governance practices, and represent the prudent use of Liberian workers’ money. I understand that the Executive and Social Security Committees have been investigating this matter since April, and I hope their findings will lead to constructive actions to address this issue.
7. I recently followed up on a letter sent by Senator Francis Dopoh of River Gee and I addressed Plenary on February 13, 2024. In the letter, we expressed our deep concern regarding the status of various loan agreements that our government entered into with international financial institutions and ratified by the 54th Legislature and their potential impacts on our nation’s development. We must address this issue because our country’s creditworthiness is currently at a high debt distress level, which could hinder current and future administrations from borrowing for essential development projects. According to the Annual Public Debt Management Report for Fiscal Year 2023 published by MFDP, public debt grew by 15.3% to US$2.3 billion at the end of December 2023, compared to US$2.03 billion at the end of December 2022. This increase in the debt stock was driven by disbursements from both domestic and external creditors. The external component of the total debt stock constituted about US$1.375 billion, representing 57.4%, while the share of domestic debt is US$1.021.73 billion, representing 42.6%. The Committee on Ways and Means is actively collaborating with MFDP to obtain the necessary information, and we are committed to addressing this issue effectively.
8. I led the Adhoc Committee examining the Customs Destination Inspection contract with MedTech Scientific Dubai and the Container Tracking (CTN) contract with Global Tracking & Maritime Solutions with GOL. The investigation into the MedTech contract is ongoing due to the ill health and unavailability of one of its significant shareholders. However, we have concluded a thorough and open public investigation of the CTN investigation. We have recommended a comprehensive contract renegotiation emphasizing the importance of improved transparency, renegotiation of contract terms, and better financial management of the GTMS contract. This aims to ensure that the CTN services are cost-effective, compliant with local and international regulations, and ultimately beneficial to the Liberian economy.
Gbarpolu County Matters
1. In April, Senator Botoe Kanneh and I brought attention to the problem of illegal mining by Chinese nationals and their Liberian collaborators in Gbarpolu County in a letter addressed to the Senate. In addition to our letter, we have been actively engaging with the Executive Branch to address this pressing issue. As a result of our efforts, two Chinese-owned companies—Xin Li Da Investment Ltd. and Liberia Xian Shi Development Co., Ltd.—have been indicted for economic sabotage, tax evasion, and criminal conspiracy in our county, a victory for not just the people of Gbarpolu but Liberia. I hope our justice system will ensure justice is served to our people.
2. I collaborated with the Executive Branch—Ministry of Public Works and the Liberia Anti-Corruption Commission (LACC)—to launch an official investigation into the alleged misappropriation of public funds to develop Bopolu Streets. I want to thank Minister Giddings and Chairlady Alexandria Zoe for their dedication to uncovering the truth and ensuring justice for our county and country.
I appreciate your support as we work with others to fight for our country and country. Working with my colleagues has been quite an experience, from whom I have learned a lot about how the Senate and Legislature work. It’s quite a change from how the Executive Branch, private sector, and multilateral development banks work. I embrace the change!
For previous updates and more information about our work, please visit our website at www.senatoramarakonneh.gov.lr
