By Seltue Karweaye Sr.
Africa-Press – Liberia. A comprehensive audit conducted by the General Auditing Commission (GAC) has revealed significant irregularities in Liberia’s domestic debt portfolio, indicating that approximately US$770 million in claims dating back to 1980 are either invalid or unverified. The findings, detailed in a recently released report, highlight the country’s ongoing challenges with public financial management and debt accountability.
The audit reviewed a total of 1,083 domestic debt claims, amounting to US$871,529,053 over a span of 44 years. Out of these, only 133 claims, totaling US$101,771,823, were properly verified and documented. In stark contrast, 950 claims—equivalent to US$769,757,230 or roughly 88% of the total—were deemed invalid due to insufficient documentation, inconsistencies in records, and unverifiable information.
The GAC audit report on Liberia’s public debt presents alarming figures that underscore severe systemic failures within the Ministry of Finance and Development Planning (MFDP) and its Debt Management Unit (DMU). Despite the comprehensive nature of the GAC audit, no investigations or legislative inquiries have been initiated regarding the report’s findings. The GAC report illustrates how large-scale borrowing can create avenues for significant financial misappropriation, often concealed by complex financial instruments and opaque government processes.
According to the Ministry of Finance’s Public Debt Management Report for the Second Quarter of Fiscal Year 2025, as of June 2025, Liberia’s public debt has skyrocketed to an astonishing $2.6 billion—more than quadrupling over the past decade. Of this, approximately $1.6 billion, or 60.15%, constitutes foreign debt, while domestic debt accounts for roughly $1 billion, representing 39.88%. This staggering debt burden now exceeds 52.53% of the nation’s Gross Domestic Product (GDP), significantly surpassing the International Monetary Fund’s (IMF) recommended threshold of 50% for developing countries. The rapid escalation of debt, frequently justified in the name of development projects, raises critical concerns regarding the effectiveness and transparency of debt management and utilization.
The potential for corruption associated with public debt reaches far beyond the realm of mega-projects; it infiltrates the critical processes involved in acquiring and managing this debt. The GAC report uncovers a disturbing trend that has significant implications for Liberia’s economic development, posing a grave threat to the foundational pillars of fiscal stability and social progress.
Public debt, which is frequently justified as an essential mechanism for national growth, has unfortunately devolved into the largest reservoir of budget-related corruption within Liberia. This insidious form of mismanagement not only diverts vital resources away from public services and infrastructure development but also fosters an environment of mistrust among citizens towards their government. It exacerbates inequality and stifles meaningful economic advancement, highlighting the urgent need for reforms that ensure transparency and accountability in public finance. Addressing this issue is crucial for restoring public confidence and securing a sustainable future for Liberia’s economy.
The potential for corruption associated with public debt reaches far beyond the realm of mega-projects; it infiltrates the critical processes involved in acquiring and managing this debt. The GAC report uncovers a disturbing trend that has significant implications for Liberia’s economic development, posing a grave threat to the foundational pillars of fiscal stability and social progress. Public debt, which is frequently justified as an essential mechanism for national growth, has unfortunately devolved into the largest reservoir of budget-related corruption within Liberia. This insidious form of mismanagement not only diverts vital resources away from public services and infrastructure development but also fosters an environment of mistrust among citizens towards their government. It exacerbates inequality and stifles meaningful economic advancement, highlighting the urgent need for reforms that ensure transparency and accountability in public finance. Addressing this issue is crucial for restoring public confidence and securing a sustainable future for Liberia’s economy.
The insidious nature of corruption through public debt is particularly alarming due to its facade of legitimacy, which makes it not only challenging to identify but also exceedingly difficult to prosecute. Unlike blatant acts of embezzlement or bribery, corruption involving public debt is often meticulously planned, budgeted, and endorsed by legislative bodies, lending it an air of authenticity. This form of “budgeted corruption” can manifest in various ways, such as exaggerated project costs, fictitious infrastructures that exist only on paper, and illicit kickbacks or inflated commissions during loan negotiations.
Former Speaker of the House of Representatives Fonati Koffa raised serious concerns regarding the budget formulation process in a revealing appearance on Spoon Talk. He disclosed that members of the 54th Legislature, particularly those from the Joint Committee on Ways, Means, and Finance, routinely gather in Room 1026 at the Boulevard Palace Hotel to deliberate on the annual budget. During these sessions, representatives from various government ministries and agencies are invited to assess the initial budget allocations proposed by the Ministry of Finance. However, Koffa exposed a troubling trend where certain lawmakers—referred to as a cartel—preemptively inform ministry officials of their intentions to artificially inflate budget figures to secure financial kickbacks for personal gain.According to Koffa, “This same cartel will take the budget to Room 1026 at the Boulevard Palace Hotel to manipulate the numbers.”
The Roberts International Airport Highway project stands as a stark illustration of the potential for corruption associated with public debt in Liberia. Originally budgeted at $94.5 million, the project’s cost has dramatically risen to $101 million, solidifying its status as one of the most expensive highway undertakings in the country. In January 2023, Montserrado County Senator Abraham Darius Dillon revealed that he has received credible information suggesting that $20 million of the $30 million disbursed by the government to East International for the highway’s construction remains unaccounted for. Senator Dillon highlighted the fact that East International has asserted that only $10 million was actually received by the company, thereby casting serious doubt on the accountability of the remaining $20 million.
Given these troubling revelations, there is a pressing need for a comprehensive legislative investigation. This inquiry should aim to clarify whether there have been any gross irregularities in the project’s financing, such as obscure loan agreements with creditors and questionable costs related to materials and labor. A thorough report could offer critical insights into whether Liberia has suffered financial losses through corruption over the 45-kilometer (27.8 miles) stretch of highway. It is essential for the nation to discern whether the project was mired in mismanagement and corruption—issues ultimately financed through public debt that will burden future generations with repayment—or whether all financial transactions were conducted transparently and appropriately.
The potential for corruption related to public debt extends well beyond mega-projects, encompassing the intricate processes of debt acquisition and management. During the administration of George Weah, the Liberian government entered into a substantial loan agreement with Eton Financial Private Limited, a financial institution based in Singapore, for an impressive sum of US$536 million. Within a mere week, the government also signed another agreement with Groupe EBOMAF SA, amounting to US$426 million, culminating in a staggering total debt obligation of US$962 million. The US$426 million pre-financing loan agreement with Groupe EBOMAF was finalized on June 5, 2018, and received governmental approval just two days later, on June 7, 2018. Groupe EBOMAF is owned by Mahamadou Bonkoungou, a longstanding confidant of President George Weah, who has previously facilitated travel for the president by providing access to a private jet. The loan agreement with Eton Financial was executed during the same timeframe, raising questions about the speed and transparency of these negotiations.
Additionally, it is noteworthy that Eton Finance PTE Limited, a Hong Kong-based entity with a strikingly similar name to its Singapore counterpart, was incorporated on March 16, 2018. This was likely around the same time that discussions for the loan agreements commenced, suggesting that the company may have been specifically established to facilitate these financial transactions. The arrangements concerning EBOMAF and Eton Finance PTE have unveiled critical systemic irregularities within the loan negotiation process. These irregularities include the involvement of questionable intermediaries, the use of non-disclosure agreements that obscure the terms of the loans, and inflated interest rates that predominantly favor the lenders, thereby placing an unfair financial burden on Liberian taxpayers. Fortunately, as of now, these loans have not proceeded to fruition, leaving room for further investigation into the ethical implications of these transactions.
The health sector, which plays a vital role in responding to global health crises, has regrettably fallen victim to corruption. A significant revelation surfaced in 2022 when an investigation by the Swiss Global Fund’s Office of the Inspector General (OIG) accused the Ministry of Health and Social Welfare of engaging in corrupt practices. This investigation led to a formal request for the return of nearly $1 million that had gone missing, specifically $990,000, which was allocated for vital research on HIV/AIDS, tuberculosis (TB), and malaria by a Swiss organization. On April 8, 2022, the organization expressed serious concerns over what it described as the Ministry’s ‘noncompliance with program implementation,’ leading to the demand for restitution.
Further complicating matters, a 2023 investigation by FrontPage Africa uncovered a troubling scandal involving $188,978.86 from a USAID-funded healthcare project aimed at improving healthcare services in Margibi County. A leaked audio recording revealed that several local health officials were implicated in collusion with vendors to divert funds intended for the project. Although the implicated vendors ultimately returned the misappropriated funds, the outcome in the healthcare sector and the broader implications for future funding and program integrity.judicial system was disheartening. The 9th Judicial Circuit Court in Bong County acquitted the health officials who were involved in this misconduct, raising concerns about accountability within
The influence of debt-fueled corruption on Liberia’s development trajectory is both profound and extensive. According to a comprehensive analysis by the World Bank in 2022, nations that exhibit comparable GDP and borrowing levels to Liberia but maintain lower levels of corruption have achieved significantly superior development outcomes. For instance, while Liberia’s debt-to-GDP ratio stands at a striking level similar to that of Ethiopia, Ethiopia has strategically transformed its borrowing into substantial development progress, particularly in critical areas such as infrastructure development and public service enhancement.
Ethiopia’s investment in infrastructure has led to the construction of vital roadways, schools, and healthcare facilities, which have, in turn, stimulated economic growth and improved the quality of life for its citizens. In contrast, Liberia’s struggles with corruption have resulted in a misallocation of resources, undermining the potential benefits of its public debt. This stark disparity in developmental outcomes underscores the corrosive impact of corruption on the effectiveness of public debt as a vehicle for national progress. When funds intended for development are siphoned off through corrupt practices, the nation is unable to leverage its financial resources to foster growth and improve living standards. Thus, addressing corruption is crucial not only for restoring public trust but also for harnessing public debt as a viable instrument for sustainable national development.
To forge a sustainable future, we must adopt a comprehensive strategy that tackles both the symptoms and root causes of debt-related corruption. First and foremost, we urgently need to enhance transparency in how debts are acquired and managed. This entails implementing mandatory public disclosures of loan terms—both domestic and foreign—conducting regular independent audits of projects funded by debt and creating a robust public debt oversight committee with active participation from civil society.
Moreover, it is imperative to strengthen our legal and institutional frameworks governing debt. This could involve enacting stricter laws that set debt ceilings, criminalizing fiscal misrepresentation, and granting anti-corruption agencies the resources and independence they need to thoroughly investigate instances of debt-related misconduct. Additionally, conducting legislative inquiries to critically assess the General Auditing Commission’s report on public debt is essential for accountability.
The reality is that public debt represents the single most significant source of budget-related corruption in Liberia. From inflated infrastructure projects to opaque loan agreements and systemic fiscal mismanagement, public debt has emerged as a Trojan horse for corruption on an alarming scale. The stakes are higher than ever—every dollar lost to debt-related corruption is a dollar stripped from the future of our children, forcing them to shoulder the burden of repayments for benefits they will never enjoy.
As Liberia stands at this pivotal crossroads, the choice is unambiguous: we must confront the nexus of debt and corruption head-on, or risk condemning our nation to a perpetual cycle of indebtedness and stunted development. The path to economic sovereignty and genuine progress lies not in further borrowing but in dismantling the very structures that have turned public debt into a mechanism for grand corruption. Together, let us choose integrity and transparency to secure a brighter future for all Liberians. I rest my pen.
Source: Liberia news The New Dawn Liberia
For More News And Analysis About Liberia Follow Africa-Press
