We are again recommending 9 solutions. This afternoon, we want to speak to the conscience of the President that we campaigned for in 2023. The people are suffering. Even those with “jobs” are considered working poor. A considerable portion of our population has turned into beggars and illegal hustlers. We can change this narrative and must do it, Mr. President. The question is how? Here are a few proposals or solutions:
1) Out of an approved budget of US$738.85 Million for FY2024, US$675.5 Million went to recurrent expenses, with a considerable portion committed to exorbitant salaries and benefits of ‘big shots’ (US$297 million for wages – salaries and benefits). The wages of ‘big shots’ should be capped at US$5K, adjusting for a 6.3% cost of living (CPI). This amount is realistic and economically justified amid a single-digit inflation rate. The impact on PP is minimal. For instance, why are we spending US$4.6 million to buy cars for just 103 lawmakers? Why are we spending over US$57 million on 103 lawmakers or 103 offices? Capping should affect all 104 GOL spending entities, including State-Owned Enterprises (SOEs).
2) The compensation (salaries and benefits) of just 18 SOEs alone accounts for US$85,822,006 in 12 months. Big shots’ wages (salaries and benefits) at SOEs also average US$11K to US$13K. Some even have over US$3.6K for home generators while civil servants get $150. Mr. President, please cap everything at US$5K. Assumption using LTA standard: The top 5 officials across these 18 SOEs earn around 11k monthly (salaries and benefits). This is 11.8 million USD for just 90 persons in 12 months. Are they space scientists or astrophysicists? Just a few are consuming a lot. Hence, inequality and poverty remain prevalent in Liberia. You are not doing a favor for tens of thousands of civil servants by giving them a non-living wage of US$150. The cost of living (CPI) in Liberia is high. What can $150 do for civil servants? Cut down on waste, Mr. President. For instance, why should five (5) offices (President, VP, Speaker, Pro-Temp, and Deputy Speaker) receive about US$11 million in 12 months? Why is this happening in The World’s eighth poorest country amid food insecurity, aid dependency, debt crisis, etc.?
3) If we cap at US$5K for everyone and substantially cut down on tens of millions going toward public waste (e.g., consultancies, entertainment, gas slips, celebrations, catering, scratch cards, furniture allowance, food allowance, lavish retreats, SUVs for big shots, foreign medical, foreign travels, etc.), GOL could save at least US$170 million. 170 million can push 40,000 civil servants from $150 up to US$500 per month and per annum (add 350 to their 150). I would propose to divert and reinvest at least 60% of savings in tourism, energy, infrastructure, human capital (TVET), transportation, roads, and agriculture, emphasizing value chain or value addition because private sector jobs are more sustainable. Mr. President, we are rich, but why are our people so poor? Our problem is PUBLIC WASTE, corruption, and greed. No “big shot” is willing to come down or cut down to US$5K. This is what “big shots” don’t want to do. This might require mass citizen action (peaceful protest). It is better and economically sound for more Liberians to earn more money than for a few Liberians (political elites) to earn far more money. Begging is rampant because of this. $150 per month cannot develop anyone’s life or improve any family’s living standard in Liberia.
4) Mr. President, put a break or limit on begging and borrowing. Sit with your creditors to restructure your domestic and external debts. Our debt stock now is more than 2.6 billion USD. The country is debt stressed and poverty stricken. Too many foreign travels with dozens of delegates are a waste of public money. Stop. Put an end to it, Mr. President. Traveling abroad just to beg and borrow is never a sustainable solution for an LDC. No country develops through handouts (aid, loans, grants, etc.) mostly intended to consume (pay fat salaries) and not to invest.
5) Mr. President, we are losing over US$300 million to annual tax holidays (Ref. LRA), which is 48% of our national budget for FY2024. Some of these holidays or exemptions are not justified. They were dished out primarily to foreign companies/businesses based on selfish commercial interests and political patronage. Invisible hands are benefiting from these tax holidays (some of your predecessors have equity shares in these tax-exempt companies). I know what I am talking about. Review all tax holidays.
6) More than a dozen multimillion-dollar foreign concession companies operating in the extractive sector are not paying their fair share. For instance, they generated over US$1.47 billion in less than one year from our iron ore, gold, timber, palm, and rubber, according to the LEITI 2023 Report. Out of US$1.47 billion, they only gave us US$182 million. For what, Mr. President? Are they the owners of our natural resources? They are exploiting our resources. Thoroughly review all Mineral Development Agreements (MDAs), emphasizing a review of Liberia’s Tax Regime. They have to pay their fair share to explore and export what we own.
7) Mr. President, focus on diversification to drive economic growth. We are too dependent on revenues from exports of extractive commodities. Let’s power and empower Liberian-owned businesses, entrepreneurs, and “manufacturers” to drive growth and wealth creation. A Liberian-led manufacturing-export economic model is a sine qua non at this point. Additionally, place a premium on key sectors: agriculture, tourism, energy, roads, manufacturing, technology, education, health, and Security. Be very intentional and programmatic about your investment in these areas.
8)Mr. President, broaden your tax base. There are hundreds of unregistered businesses in Liberia, including illicit mining activities and miners across leeward counties. Some are registered but still evade and avoid taxes. Subject all of them to registration and taxation through appropriate and fair tax mechanisms. This will easily take your Government to “The 1 billion USD fiscal envelop dream” and create thousands of gainful employment opportunities for Liberians.
9) The most important thing, Mr. President, is this: Focus on fighting corruption and strengthening public sector institutions with an emphasis on justice, accountability, merit, efficiency, productivity, and sustainability (e.g., value for money). This requires investment in human capital (quality education), the rule of law, political will, etc.
Conclusion:
Mr. President, don’t see me as a “hater” or a “provocateur” simply because I am putting you under pressure to get it right. It helps if you have someone like me to keep the Government under pressure and in check. Otherwise, things will get out of hand or scatter.
We have to get it fixed. We promised our people this: To improve lives and lift them out of poverty. We have to do it for our people. They are going through hell (tough times). And you promised to get them out of it. No time. That’s why we must prioritize their interests through fiscal soundness amid scarce resources. How we share the national cake and to whom we share it matters. The cake was unevenly distributed in 2024. Can we adjust the 2025 draft budget and cut down on waste? Leaving it that way would yield no real impact. Let’s give the people a more significant portion of the cake. Let’s focus more on capital projects. That’s all I am saying and that’s all I want.
Every time we talked about Liberia during the campaign in 2023, you would boldly tell me, “We will, and we can get it fixed. We can change it, young Martin.” So, let’s get it fixed for the sake of our people. That’s what I am interested in (sustainable solutions) and not just to criticize. I harbor no “hate” or “ill-will” towards your Government. Why should I “hate” something I helped make/create? But the truth is that I love the people of Liberia far more. And I owe it to the TRUTH, God, my conscience, and the next generation. Our people deserve to prosper, too, after 177 years wandering in abject poverty and shackles. When will their story of misery and poverty change or end?
Some of those, who now benefit from and earn thousands of USD on our sweat, are telling you that “I hate your government”. Where were they when we fiercely stood up to your adversaries and archrivals in 2023? Where were they when we had more than a dozen frontlines open simultaneously? I love you, Mr. President 🇱🇷, and have a wonderful weekend as you lead our people and country.
About The Author: Martin K. N. Kollie is an Exiled Liberian Activist. He earned a master’s in economics of development and is studying for a master’s in law (LL.M.).
