The National Housing Authority (NHA) of Liberia is under intense scrutiny following the release of a damning audit report by the General Auditing Commission (GAC). The report, which examines the NHA’s financial management for the fiscal year ending June 30, 2017, reveals serious deficiencies, raising concerns about accountability and transparency within the NHA.
The GAC audit findings implicate the former management of the NHA, led by Acting Managing Director Prince Wreh, who currently serves as the Executive Chairman of the Liberia Special Economic Zones Authority. Wreh was recently appointed to this role by President Joseph Nyumah Boakai, further amplifying the significance of the audit’s revelations as President Boakai has promised a strong fight against corruption citing “no business as usual”
The GAC audit highlighted multiple discrepancies in the NHA’s financial statements and administrative shortcomings. According to the report, one of the most glaring issues was the inconsistency between the financial statements and accompanying notes. For example, capital expenditures reported as US $3,480,000 in the statements differed drastically from US $108,000 listed in the notes.
The audit also noted unexplained changes between budgetary figures and actual spending. Specifically, there was a $1,758,000 variance in authorized appropriations that lacked proper validation.
In addition, there were concerns about revenue misreporting, with transactions worth US $672,904 and L$2,728,289.40 not being supported by adequate records, such as receipts or deposit slips.
“The discrepancies we found point to a significant lack of oversight and proper financial management,” the GAC report stated. “Without sufficient explanation for these variances, it raises serious questions about the integrity of financial practices at the NHA during the period in question.” The report added.
Another key issue highlighted was the failure to remit unspent closing cash balances to the government’s Consolidated Account, as required by the Public Finance Management (PFM) Act of 2009. Instead, these funds were misapplied, according to the audit.
The audit also exposed various administrative concerns, including poor documentation practices, inadequate internal controls, and deficiencies in the management of fixed assets. The absence of a functional procurement or audit committee was noted, increasing the risk of unauthorized transactions and non-compliance.
Another critical finding from the audit involves an unsupported revenue generation, failure to remit national social security contributions, and a significant lack of a cash book or general ledger for the assessed fiscal year. The NHA’s failure to perform bank reconciliations led to a considerable variance of more than $6 million between reported cash outflows and actual figures.
“Management is advised to establish proper oversight committees and ensure documentation is thorough and accurate,” the report recommended. “A robust asset management policy must be implemented to prevent potential asset misappropriation.” The audit report noted.
The revelations have prompted calls for accountability, especially given Wreh’s current role in a high-profile government position. As the audit findings continue to make headlines, many are questioning the decision to appoint Wreh despite his previous leadership at the NHA being marred by these allegations.
So far, there has been no official statement from Wreh or the current NHA administration regarding the findings of the GAC audit report. All efforts made through phones calls, texts and WhatsApp messages for Wreh’s comment on the GAC report prove to no avail.
By Emmanuel Degleh/ Contributor
