Tuesday, June 22, 2010

Response to GAC’s Allegations of Financial Strangulation

Response to GAC’s Allegations of Financial Strangulation
Source: http://www.liberianforum.com/Press-Releases/Response-to-GACs-Allegations-of-Financial-Strangulation.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+liberianforum%2FQQsQ+%28LiberianForum.Com%29&utm_content=Yahoo%21+Mail

Written by Ministry of Finance

Saturday, 19 June 2010

The Ministry of Finance strongly rejects as false and misleading media reports that the General Auditing Commission was being financially strangulated.

The report claims that the Ministry of Finance has taken US$432,000 from GAC’s FY2009/2010 appropriation.

The truth of the matter is that the Government’s financial position during the current fiscal year has been characterized by uncertainties in revenue flows. The FY2009/2010 Budget contained some inherent risks from the time the budget was approved in mid 2009. In August the assessed revenue risk was US$35.9 million or 9.6% of the US$371,9 million budget. In October the risk has escalated to US$58.5 million or 15.7% October. Consequently, an equal amount was frozen from the expenditure side. The risk profile as we go towards the end of the fiscal year has further deteriorated, necessitating further cuts across government.

While the overall expenditure cut contained in the budget risk management strategy concluded in October 2009 was 15.7%, some agencies were treated with special preferences compared to others. The GAC happened to be one of such agencies that were prioritized. At the onset, US$432,000 was frozen out of the GAC’s US$3.7 million, but US$200,000 was returned by way of budgetary transfers.

Thus the net amount frozen out of GAC’s budget was US$232,000 or 6.2%, which is far smaller compared to other Ministries and Agencies of Government. Ministry of Public Works’ budget was reduced by 18%, Ministry of Agriculture 17.1%, Ministry of Finance 15.3%, Governance Commission 13%, Judiciary 12.5%, Ministry of Defense 10% and Liberia Anti-Corruption Commission 6.3%.

It is therefore clear that even when the rest of Government was sharing the burden imposed by low revenue performance, the GAC was given the priority while others experienced more severe budgetary reductions. That the GAC authorities could attempt to mislead the public in the face of these glaring reality, which they are very much aware of, is disingenuous to say the least.

The Ministry of Finance therefore detests and considers as infantile the GAC’s continuing habit of provoking unnecessary controversies by constantly preferring to discuss financial management issues in the press just for the sake of creating controversies where they don’t exist. The only immediate gain for the perpetrators of such acts is to invoke undeserved sympathies and public favor. In spite of more stringent measures, other agencies of government are proceeding with the judicious management of their available resources and the GAC should do likewise for prudent financial management is the key deterrent to fraud, waste and abuse.

Nevertheless, the Ministry of Finance will not be drawn into unnecessary distractions as it has more urgent and pressing national priorities to deal with.


Media Services & Public Affairs Unit

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Inside Liberia with Bernard Gbayee Goah

Everyone is a genius

Everyone is a genius. But if you judge a fish on its ability to climb a tree, it will live its whole life believing that it is stupid. – A Einstein

Drawing the line in Liberia

Crimes sponsored, committed, or masterminded by handful of individuals cannot be blamed upon an entire nationality. In this case, Liberians! The need for post-war justice is a step toward lasting peace, stability and prosperity for Liberia. Liberia needs a war crimes tribunal or some credible legal forum that is capable of dealing with atrocities perpetrated against defenseless men, women and children during the country's brutal war. Without justice, peace shall remain elusive and investment in Liberia will not produce the intended results. - Bernard Gbayee Goah

Men with unhealthy characters should not champion any noble cause

They pretend to advocate the cause of the people when their deeds in the dark mirror nothing else but EVIL!!
When evil and corrupt men try to champion a cause that is so noble … such cause, how noble it may be, becomes meaningless in the eyes of the people - Bernard Gbayee Goah.

If Liberia must move forward ...

If Liberia must move forward in order to claim its place as a civilized nation amongst world community of nations, come 2017 elections, Liberians must critically review the events of the past with honesty and objectivity. They must make a new commitment to seek lasting solutions. The track records of those who are presenting themselves as candidates for the position of "President of the Republic of Liberia" must be well examined. Liberians must be fair to themselves because results from the 2011 elections will determine the future of Liberia’s unborn generations to come - Bernard Gbayee Goah

Liberia's greatest problem!

While it is true that an individual may be held responsible for corruption and mismanagement of funds in government, the lack of proper system to work with may as well impede the process of ethical, managerial, and financial accountability - Bernard Gbayee Goah

What do I think should be done?

The situation in Liberia is Compound Complex and cannot be fixed unless the entire system of government is reinvented.
Liberia needs a workable but uncompromising system that will make the country an asylum free from abuse, and other forms of corruption.
Any attempt to institute the system mentioned above in the absence of rule of law is meaningless, and more detrimental to Liberia as a whole - Bernard Gbayee Goah

Liberia's Natural Resources
Besides land water and few other resources, most of Liberia’s dependable natural resources are not infinite, they are finite and therefore can be depleted.
Liberia’s gold, diamond, and other natural resources will not always be an available source of revenue generation for its people and its government. The need to invent a system in government that focuses on an alternative income generation method cannot be over emphasized at this point - Bernard Gbayee Goah

Liberia needs a proper system
If Liberians refuse to erect a proper system in place that promotes the minimization of corruption and mismanagement of public funds by government institutions, and individuals, there will come a time when the value of the entire country will be seen as a large valueless land suited on the west coast of Africa with some polluted bodies of waters and nothing else. To have no system in place in any country is to have no respect for rule of law. To have no respect for rule of law is to believe in lawlessness. And where there is lawlessness, there is always corruption - Bernard Gbayee Goah

Solving problems in the absence of war talks

As political instability continues to increase in Africa, it has become abundantly clear that military intervention as a primary remedy to peace is not a durable solution. Such intervention only increases insecurity and massive economic hardship. An existing example which could be a valuable lesson for Liberia is Great Britain, and the US war on terror for the purpose of global security. The use of arms whether in peace keeping, occupation, or invasion as a primary means of solving problem has yield only little results. Military intervention by any country as the only solution to problem solving will result into massive military spending, economic hardship, more fear, and animosity as well as increase insecurity. The alternative is learning how to solve problems in the absence of war talks. The objective of such alternative must be to provide real sustainable human security which cannot be achieved through military arm intervention, or aggression. In order to achieve results that will make the peaceful coexistence of all mankind possible, there must be a common ground for the stories of all sides to be heard. I believe there are always three sides to every story: Their side of the story, Our side of the story, and The truthBernard Gbayee Goah


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