Buchanan, Grand Bassa- The Ministry of Finance and Development Planning has completed its Public Financial Management Reforms (PFM) Report with a drastic increase from 25% in 2019 to 94% in 2024.
The initiative follows the Integrated Public Financial Management Reform Project (IPFMRP) and has been rolling out for the past five years.
The project was supported by major international partners, including the World Bank, the Embassy of Sweden, and the European Union (EU).
The IPFMRP established crucial foundations for advancing public financial management (PFM) reforms in Liberia.
A release from the Finance Ministry highlights notable achievements during the project lifespan including improvements in legislation, institutional development, and the roll-out of the Integrated Financial Management Information System (IFMIS) to 50 Ministries, Agencies, and Commissions (MACs).
The primary goal of the PFMRISP is to enhance domestic revenue mobilization systems while strengthening financial control and accountability in public finances.
According to the MFDP release, a recent World Bank review confirmed that the project met its objectives, achieving significant gains such as the introduction of innovative digital solutions for improved public financial management across MACs, enhanced capacity for tax policy and PFM professionals, increased compliance from large and medium-sized firms, and strengthened auditing capabilities for the General Auditing Commission (GAC) and the Internal Auditing Agency (IAA).
Additionally, the project provided support to the Ministries of Education and Health in reducing waste, resulting in substantial budgetary savings across the country.
At the start of the project end retreat in Buchanan, Deputy Finance Minister McGill Jones highlighted key milestones and achievements under the project.
These included the finalization of the draft Value Added Tax (VAT) White Paper and its submission to the National Legislature, culminating in the enactment of the VAT law in April 2024, as well as the procurement and implementation of the Liberia Integrated Tax Administration System (LITAS) in October 2022, which features online self-service for registration, filing, and payment.
Minister Jones noted the enhancement of the ASYCUDA system and the roll-out of the Simplified Customs Declaration at five customs business offices.
He also mentioned the training provided to a critical mass of ICT, human resources, and tax officers to manage and sustain the new systems, as well as the procurement of ICT equipment to strengthen the Liberia Revenue Authority (LRA).
The Deputy Finance Minister indicated that the project has also significantly improved the timeliness of quarterly financial report submissions by ministries and agencies, increasing from 25% in 2019 to 94% in 2024.
This improvement was facilitated by several reforms, including the roll-out of IFMIS to an additional 36 MACs, bringing total coverage to 86 MACs; the installation and operationalization of the Electronic Funds Transfer (EFT) system; the deployment of the Electronic Document Management System (EDMS) for audit support; the ongoing migration of the civil servants’ payroll to the Civil Service Management module; and the activation of the Donor-Funded Module within IFMIS, along with the migration of data from 15 donor-funded projects.
Minister Jones also highlighted the training of comptrollers and accounting officers on the government’s reporting framework and IFMIS, as well as funding for the professional qualification of three staff members as Chartered Accountants.
He stated that these accomplishments reflect the government’s commitment to enhancing public financial management and accountability in Liberia.
For his part, Acting Project Manager for the PFMRISP, Momo K. Lombeh, reiterated the project’s strong success due to the outstanding performance of government ministries, agencies, and commissions.
Lombeh asserted that while the gains of the project may be largely intangible, they represent a significant step forward in strengthening governance across the government.
