A recent audit by the General Auditing Commission (GAC) has revealed serious financial irregularities at the Liberia Revenue Authority (LRA), including over US$2.2 million in expenditures lacking proper documentation and nearly US$6.8 million in government revenue not remitted to the consolidated account.
According to the GAC report, the findings point to major lapses in financial control, regulatory compliance, and adherence to contractual obligations surrounding the Destination Inspection (DI) Agreement between the LRA and MedTech Scientific Limited.
Key Audit Findings
The GAC’s audit identified four major issues:
Non-remittance of Government Revenue-The LRA reportedly failed to remit US$6,775,954.07 in revenue derived from the 20% fees under the DI Agreement.
These funds were instead held in a designated LRA account-the MTS Capacity Building Fund-in violation of the Public Financial Management Act and related regulations.
Non-adherence to Transitory
Account Requirements-The GAC found that from August 2021 to October 2024, DI fees were not deposited into the required Ecobank transitory account. Instead, the government’s share remained in MedTech’s account.
The auditors also discovered a variance of about US$770,323.40 between expected and actual remittances, suggesting possible misapplication of funds.
Payments without Supporting Documents
The audit flagged US$2,269,560.49 in payments lacking adequate supporting documentation such as invoices, procurement reports, or receipts. This raised concerns over unauthorized or potentially fraudulent payments.
Non-compliance with Approved Service Fees
The report also noted deviations from the approved DI fee structure, with instances of unapproved adjustments and reliance on BIVAC fee models without proper contractual amendments.
Risks and Recommendations
The GAC warned that the lapses could lead to financial misstatement, misappropriation of funds, and legal disputes. It urged the LRA to:
Remit all outstanding funds to the consolidated account immediately;
Deposit all DI fees into the designated transitory account;
Strengthen documentation and reconciliation processes;
Formalize any contractual changes to ensure transparency and compliance;
And implement stronger internal controls to prevent future violations.
LRA’s Response
In a detailed response, LRA Commissioner General James Dorbor Jallah rejected portions of the GAC’s findings, describing them as “grossly inflated and misleading.”
“The numbers presented by the GAC are grossly inflated as explained below. The inflated numbers are misleading and unjustly impugn the LRA’s reputation,” Jallah stated.
He further argued that the GAC report contained “numerous inconsistencies and contradictions,” citing what he called a double counting error of US$248,110.96 across audit appendices.
“It is important to note that GAC was notified of this double counting during the exit meeting, but they chose not to address this major flaw,” Jallah said.
Continuing, Commissioner Jallah noted: “These two observations show that GAC inflated the amount for expenditures they reported as lacking adequate supporting documents by US$376,130.19,” he added.
While the LRA maintains that the GAC’s figures are exaggerated, the audit findings raise pressing concerns about the management of public funds and compliance with financial regulations.
The controversy underscores the need for greater transparency, accountability, and oversight in the handling of government revenues, particularly in high-value agreements like the Destination Inspection program.
If the GAC’s recommendations are not promptly addressed, the report warns, Liberia risks financial losses, weakened governance, and possible legal repercussions stemming from the mismanagement of public resources.
