-Widespread non-compliance at CBL
By Jerromie S. Walters
A recent audit conducted by the General Auditing Commission (GAC) on the Liberia Water and Sewer Corporation (LWSC) for the fiscal years ending June 30, 2019, to June 30, 2021, has unearthed substantial financial discrepancies, including the collection of only $2.8 million out of $23.4 million in billed amounts for FY 2021, which is merely 12%.
Key findings show that Customer bills were not submitted on time, and there was no evidence of regular enforcement to collect outstanding debts. Payments were manually posted against bills leading to incomplete records of bills generated and collected. Several items amounting to over $300,000 were paid without evidence for bid documents. Major customers, including Monrovia Breweries, Liberia Coca-Cola Bottling Company, and the United States Embassy, did not confirm balances on LWSC’s accounting records.
Also, non-remittance of personal income tax deductions amounting to ($291,411.70) and social security deductions ($157,164.84) to LRA and NASSCORP, respectively, was identified. Meanwhile, another audit by the General Auditing Commission (GAC) has uncovered widespread non-compliance at the Central Bank of Liberia (CBL) for the period spanning from January 1, 2018, to December 31, 2023.
The audit report highlighted numerous violations of the 1986 Constitution, the PPC Act of 2005, the CBL Act of 1999, and various CBL policies. Key issues identified in the report include unauthorized government loans amounting to $83.05 million without legislative approval, procurement irregularities involving over $11 million, and unauthorized payments of $1,084,027 for corporate social responsibility activities.
Moreover, the audit revealed significant deficiencies in staff contract approvals and the maintenance of personnel records, including the withholding and non-remittance of taxes and contributions. The findings of the audit point to serious governance and regulatory compliance failures at the CBL, prompting the need for immediate corrective actions to restore integrity and public confidence in the institution.
The GAC has indicated that the audit findings will be submitted to the Joint Legislative Public Account Committee, with recommendations forwarded to the Executive for necessary action. It is important to note that the audit findings serve as a preliminary step in the process and do not automatically imply guilt on the part of the CBL. Further investigations and actions may be taken based on the recommendations provided in the audit report.
