Liberia: Rep. Bility Frowns on Hasty Passage of US$41M ‘1/12’ Budget

Nimba County District 7 Representative, Musa Bility, has frowned at his colleagues for approving a budget request of US$41 million by President Joseph Boakai. 

According to Bility, there was no report submitted by the President as to how the US$66M that was used by the past regime, requested by former finance minister Samuel Tweah as required in the Public Financial Management Law, used 1/12 of the Budget.

“There was no explanation as to why there is no budget by now. There was no explanation as to when we [are] going to have a budget,” Bility said in a Facebook live statement. “There is no explanation as to what happened to the first US$66 million.” 

The amount requested by President Boakai was intended to avoid a government shutdown while his administration worked out modalities to submit the full budget.

“This is not good budgeting practice or governance. This is not the transparency we seek. We are closing our eyes to blatant violations of our laws by the Executive and making the Legislature accomplices in that violation,” he said. 

According to Bility, he wrote the house speaker objecting to the President’s request, but his letter was downplayed. 

“There was nothing wrong with the Minister of Finance sending us the report as to why you want US$41M when you already have US$66M,” Bility said. “Give us the report — which one Samuel Tweah uses and which one you use.”

Additionally, he said the Public Financial Management Act specifically provides for the use of 1/12 of the previous year’s budget, pending the approval by the legislature of the current year’s budget.

“Therefore, there is no need for the Executive to seek further approval from the Legislature for this amount,” Bility continued. “However, the PFM Act clearly states that any amount used under this provision must be in line with the proposed Budget for the current fiscal year.

“On that basis, the outgoing administration in a bid to avoid government shutdown evoked Section 22 of the Amended Restatement of the Public Financial Management Act of 2009 (PFM Law) which states, ‘In the case where the Legislature is unable to approve the National Budget before the start of the fiscal year, the Minister is authorized to collect revenues and approve expenditures, in line with the proposed budget, up to one-twelfth (1/12) of the Budget of the previous fiscal year. Expenditure of said (1/12) by the Minister shall be included in the subsequent financial outturn.’”

Rep. Bility also argued that in the absence of the applicable provision of the PFM Law, there appears to be no legal basis stated for the request of this US$41 million budget.

The framers of the existing laws, he said, in their wisdom, considered and anticipated the delays in “our governance system and provided for such delays under Section 22 of the Amended PFM Act.”

“What is the legal basis for the Executive to not submit an Annual Budget for FY2024, not utilize the 1/12 provision for February but yet request a budget of US$41 million? Is this request in addition to the 1/12th?

“Section 22 of the Amended PFM Act presupposes that the budget approval process has been delayed for valid reasons and, as such, allows for expenditure pending the finalization of the Budget. This exception was not intended for arbitrary application and should not be used for reasons that are not justified, albeit the prerogative of the Executive. To date, the Executive has not submitted, and the Legislature has not received an amended FY2024 National Budget nor an explanation or justification for this lapse,” he said.

He urged Boakai to fulfill promises to the Liberian people during the election, which brought him to the presidency.

“Where necessary, I will give my notes to the President, but where he goes wrong, I will not remain quiet.”