The latest audit report on domestic debt shows that a total of US$704 million in claims could not be validated by the General Auditing Commission (GAC).
The GAC’s Domestic Debt Audit, recently concluded and published, reveals significant financial irregularities in Liberia’s domestic debt portfolio.
The audit followed a nationwide call for claim submissions in late 2024.
The public notice, issued on November 26, 2024, outlined the required supporting documentation for claim validation.
This step was intended to promote transparency, accountability, and equity in assessing Liberia’s outstanding domestic debt.
Out of all the claims submitted for verification, the GAC found that claims amounting to US$704 million lacked sufficient evidence.
These unverifiable claims now represent a potential savings opportunity for the Government of Liberia.
According to the GAC, this amount would otherwise have been added to the national debt burden,
possibly requiring repayment through taxpayers’ money or donor funds.
The findings mark a significant step in cleaning up the nation’s financial records.
The audit is part of ongoing efforts to improve public financial management and reduce the risks associated with undocumented or inflated debt claims.
It also comes at a time when fiscal discipline is key to economic recovery and sustainability.
In addition to identifying potential savings, the Auditor General’s report includes a range of policy and administrative recommendations.
These are aimed at strengthening the country’s debt management systems going forward.
Among the key issues addressed is the legislation of a statute of limitations on domestic debt claims, which would limit the submission of outdated or unverifiable obligations.
The report also touches on the need for improved debt reporting practices.
The Auditor General emphasized that the implementation of these recommendations could significantly enhance transparency in debt processing and public sector accountability.
The audit further highlights concern about the country’s debt-to-GDP ratio—a critical measure of economic health and sustainability.
Unverified or inflated debts could distort this figure, undermining public and investor confidence.
According to the GAC, accurate debt data is essential for economic planning and for maintaining trust with international partners and creditors.
The findings of the audit are therefore not just about savings but about restoring credibility to Liberia’s financial management.
The Commission has urged the Ministry of Finance and Development Planning to act on the recommendations without delay, particularly those aimed at preventing a recurrence of such issues in the future.
Stakeholders, including civil society and development partners, have welcomed the report as a step toward better fiscal governance.
Many have called for regular debt audits and tighter internal controls within the finance sector.
