In a revealing interview on Spoon Talk on Saturday, December 6, 2024, Minister of Finance and Development Planning, Hon. Augustine K. Ngafuan, provided in-depth insights into key issues facing his ministry, including the ongoing harmonization policy, fiscal challenges, and the government’s decentralization agenda. The interview offered a comprehensive view of the administration’s approach to resolving Liberia’s financial and governance issues and the obstacles it continues to navigate.
Ngafuan, who took office in September 2024, began by addressing the lingering questions surrounding the harmonization policy, which was introduced by the previous administration and remains a source of contention. He acknowledged that while the harmonization efforts aimed to standardize salaries across the government sector, they inadvertently led to significant discrepancies. According to the Minister, some civil servants, especially judges, were underpaid despite the policy’s intent to create equity. “The harmonization policy had its merits, such as the collapsing of salaries and allowances into one package, but it also left many workers, especially in critical areas, earning far less than they should have,” he explained.
Ngafuan pointed out that the government’s immediate focus is on addressing these pay disparities, especially for workers like judges who previously earned below their expected pay levels. He shared that, in the new budget, the government had already started taking steps to rectify these imbalances. “We are focusing on our judiciary first because judges play a crucial role in ensuring justice is served,” Ngafuan said. He elaborated that the Boakai administration is committed to ensuring that no government worker earns below the minimum wage of $150 per month. According to him, this would be a significant move in uplifting the morale of civil servants and improving the functionality of government institutions.
Despite the immediate focus on the judiciary, Ngafuan emphasized that the harmonization issue extends beyond judges. There were other government employees, including those from rural areas, who were earning far below the minimum wage despite the initial efforts of the past government to set a floor of $150. He noted cases where some civil servants, including one from River Gee County, earned as little as $53 monthly. “This is unacceptable, and that’s why we are addressing these concerns head-on,” Ngafuan stated. He assured Liberians that the government is taking a gradual, multi-year approach to address harmonization and ensure fair compensation across the civil service.
The Minister highlighted that the harmonization process would take time as the government’s resources are limited. “This is a multi-year journey. We don’t have the resources to correct everything in one year, but we are making a start,” he said. Ngafuan stressed that while the government aims to address the discrepancies, it cannot make drastic changes immediately without careful fiscal planning. “We must be responsible in managing Liberia’s finances, which means addressing these issues systematically over time,” he added.
Ngafuan also spoke about the broader fiscal challenges Liberia faces, primarily the government’s responsibility to address the legacy of debt left by the previous administration. He discussed the $83 million loan the previous government had taken from the Central Bank of Liberia, which the Boakai administration inherited. “We are faced with significant challenges, including repaying this loan. But we have already begun addressing it, starting with a payment of $16 million,” Ngafuan explained. He noted that this was just the beginning, and the government had plans to continue payments in subsequent years. “This is a huge fiscal burden, but we are determined to put Liberia on a better macroeconomic path,” he said.
The country’s fiscal health issue is intricately linked to the government’s ability to fund its operations, including paying civil servants adequately. Ngafuan pointed out that the size of the national budget is limited by the available resources, meaning that the government cannot simply increase its spending without carefully managing its finances. “The budget is like a cake. The more people want a piece, the smaller the portion each gets unless the cake grows. But that depends on the resources available,” Ngafuan explained. He expressed his belief that with better fiscal management, Liberia could increase its resources and improve the budget over time.
The Minister also addressed concerns about the police and their working conditions, particularly the issue of insurance, which has been a longstanding problem. He confirmed that the government would finally meet its legal obligation to provide insurance for police officers, as mandated by a law passed in 2015. “Beginning next year, the government will provide insurance for all police officers,” Ngafuan stated, highlighting that this was one of the key commitments made by President Boakai. He emphasized that ensuring the safety and well-being of police officers was critical to maintaining law and order in the country.
Ngafuan also illuminated the government’s decentralization agenda, which is a cornerstone of President Boakai’s vision for equitable development across Liberia. He stressed that decentralization would help bring government services closer to the people, especially in rural areas. “The goal is to ensure that all counties have equal access to government services without having to travel to Monrovia,” he explained. Ngafuan acknowledged that decentralization is a complex process that requires building capacity at the local level to ensure that resources are managed effectively.
However, he also cautioned that decentralization should be implemented with careful planning to avoid creating inefficiencies or waste. “If you decentralize without building the right controls and structures, it’s like pouring water into a leaking bucket,” Ngafuan warned. He pointed out that it was essential to ensure local governments have the necessary systems to handle resources before fully transferring authority. “We want decentralization to work, but it has to be done right,” he stressed.
On decentralized procurement, Ngafuan noted that the government was already taking steps to ensure that businesses in rural areas have equal opportunities to participate in government contracts. He explained that the Public Procurement Commission is working on policies to make it easier for county-based businesses to access procurement opportunities. “We want to make sure that local businesses are not left out when the government buys goods and services,” he said. According to the Minister, this initiative would promote economic development in rural areas and create jobs for local communities.
