By G. Watson Richards
A financial statement audit of the Liberia Airport Authority (LAA), covering July 2020 to December 31, 2023, has revealed that the General Auditing Commission (GAC) found no supporting evidence for more than US$3 million in expenditures and unremitted obligations.
The findings are contained in the GAC’s Management Letter on the Financial Statements Audit of the Liberia Airport Authority for the period under review.
According to the audit, members of the LAA Board of Directors received a combined US$241,706 in board fees and gratuities. However, auditors said there were no attendance sheets, meeting minutes, or other supporting records to justify the payments.
The report indicated that the payments included US$92,839 for FY 2020/2021, US$125 during the Special Budget Year 2021, US$119,132 for FY 2022, and US$29,610 for FY 2023.
Auditors noted that the lack of documentation raises questions about the legitimacy and accountability of the payments.
More Than US$1.2 Million in PIT Unremitted
The audit also revealed that LAA management failed to remit US$1,271,935.76 in Personal Income Taxes (PIT) deducted from employees’ salaries to government revenue accounts.
The unpaid taxes covered operations at Roberts International Airport (RIA) and James Spriggs Payne Airport (JSPA) over several fiscal periods.
The GAC urged management to comply with Section 905(J) of Liberia’s Revenue Code by ensuring that taxes deducted from employees are fully remitted to government accounts.
Auditors further recommended that management maintain proper documentation, including flag receipts and supporting records for all remittances.
In response, LAA management admitted that the taxes were not remitted, blaming the situation on financial and cash flow difficulties.
“While taxes were deducted, cash flow limitations prevented remittance,” management stated, adding that discussions are ongoing with the Liberia Revenue Authority (LRA) to establish a payment arrangement for the outstanding arrears.
Management, however, claimed that current PIT obligations are now being remitted on time.
Over US$1.5 Million Owed to NASSCORP
The audit further disclosed that LAA failed to provide evidence that employees’ and employers’ social security contributions totaling US$1,512,073.28 were remitted to the National Social Security and Welfare Corporation (NASSCORP).
According to the GAC, the failure to remit the contributions could expose the institution to penalties and negatively impact employees’ future pension benefits.
Auditors warned that retirees could face difficulties accessing benefits due to the authority’s non-compliance with pension regulations.
The report also raised concerns about the possible misuse or misapplication of the funds because of the absence of remittance records.
The GAC recommended that LAA negotiate a repayment arrangement with NASSCORP and ensure future contributions are remitted fully and on time.
Unsupported Spending and Dormant Accounts
Auditors also identified nine dormant bank accounts maintained by the airport authority at several commercial banks, including SI-BANK, GN-BANK, LBDI, and Ecobank Liberia.
In another finding, the audit cited US$121,098.23 in expenditures that lacked supporting documents such as invoices, payment vouchers, and delivery notes.
The unsupported transactions were recorded during FY 2021 and FY 2022.
GST Withholding Violations
The report further found that the airport authority failed to withhold and remit US$70,707.33 in Goods and Services Tax (GST) linked to the purchase of goods, consultancy services, and petroleum products.
According to the audit, the transactions reviewed exceeded US$5.25 million in taxable purchases.
The unremitted GST covered taxes related to goods and services, consultancy contracts, and petroleum transactions.
The GAC said it will continue monitoring the implementation of its recommendations during future audits.
The findings are expected to heighten public concerns over financial accountability and management within Liberia’s public institutions.
