Former Minister of Gender, Children and Social Protection Mrs. Piso Saydee Tarr has come in the news with a damning audit report that underscores significant amount of $US 3.5 Million used without proof of evidence, cash transfer to poor Household during the Liberia social Safety Net Project.
The leaked audit report on the Liberia Social Safety Net Project (LSSNP) uncovered by Verity Newspaper has revealed extensive mismanagement, financial irregularities, and potential fraud, raising serious concerns about the project’s integrity and the fate of millions of dollars intended for Liberia’s most vulnerable citizens.
The audit, which covered the period from January 1, 2023, to October 31, 2023, highlights several alarming findings.
Chief among them is the disbursement of $9,747.35 without adequate supporting documentation, such as receipts, delivery notes, or goods received notes.
This breach of the Public Financial Management Act of 2009 opens the door to potential fraud and raises questions about whether the payments were made for legitimate services and goods.
The absence of documentation, according to the report, undermines the validity, occurrence, and accuracy of these payments, posing a significant risk of fund misappropriation.
Despite management’s claims that all requisite documents were eventually provided, the Auditor General’s office maintains that the failure to submit these documents in a timely manner indicates poor financial control and increases the likelihood of fraudulent practices.
Unexplained Budget Variances
Another disturbing finding is the unexplained variance between the budgeted and actual expenditures for the project.
The report notes that management failed to include explanatory notes for a $7,500 discrepancy between the allocated budget and the actual expenditure. Such omissions, the report warns, could obscure the true financial health of the project and deny stakeholders the necessary information to make informed decisions.
Although management attributed the variance to an audit fee placed in escrow, the report underscores that this explanation was insufficient and calls for a comprehensive adjustment of the financial statements to account for the discrepancy.
Irregularities in Cash Transfers
The report also sheds light on irregularities surrounding the disbursement of $3,571,824.88 to “Give Directly, Incorporated,” an organization tasked with implementing the Social Cash Transfer program aimed at providing income support to 10,000 extremely poor and food-insecure households in Liberia. During a physical verification exercise, auditors discovered several concerning issues to include Lack of Disbursement Evidence.
No evidence, including mobile money statements, was provided to confirm that payments were made to approved beneficiaries.
Non-Transparent Exchange Rates: The actual exchange rates used to convert U.S. dollars to Liberian dollars were not disclosed, casting doubt on the accuracy and completeness of the cash transfers.
Alarmingly, 90% of the 300 sampled beneficiaries in Maryland and Bomi Counties had inactive mobile money accounts due to lost or stolen phones and SIM cards, raising questions about whether these individuals ever received their payments.
Management’s response to these findings has been dismissive, claiming that beneficiaries might have falsely reported non-receipt of payments. However, the Auditor General’s office remains unconvinced, stating that management failed to provide the necessary evidence to substantiate their claims and did not make the required adjustments to the financial statements.
Adding to the project’s woes, the audit found that bank reconciliation statements for August and September 2023 were not prepared within the required timeframes, delaying the detection of errors or fraud.
Management however blamed these delays on the late submission of bank statements by Ecobank, but the report emphasizes that such lapses in financial oversight could lead to significant misstatements and jeopardize the project’s financial position.
Equally concerning is the absence of an approved Annual Workplan and Budget, as required by the project’s operational guidelines. Without these crucial documents, the report warns, the project risks undertaking activities that may not align with its objectives, potentially resulting in substandard deliverables and a failure to achieve value for money.
The revelations contained in this leaked audit report paint a troubling picture of the Liberia Social Safety Net Project’s management and financial practices.
With millions of dollars at stake and the welfare of Liberia’s poorest citizens hanging in the balance, the findings demand immediate action.
As the Auditor General’s office prepares for a follow-up audit, the pressure is now on the Ministry of Gender, Children, and Social Protection to rectify these glaring issues and restore trust in the project.
