The House of Representatives in Liberia, which has not been audited since the 1989 Civil War, is now taking steps to ensure proper management of public funds. The General Auditing Commission (GAC) has been engaged to conduct a system review of the Legislature, with a full-scale financial statement audit to follow in two years. This move comes after previous attempts to audit the legislature were met with resistance from lawmakers. The audit of the legislative branch and the implementation of financial autonomy are seen as crucial steps towards combating corruption and ensuring accountability in Liberia's governance system. The legislature has a reputation for rent-seeking behavior and is considered among the highest-paid parliamentarians in West Africa. The legislative budget has increased over the years, reaching a record high of $64.3 million in 2022. Liberian lawmakers earn more than government officials in countries with much larger economies, despite the country's struggling economy and high poverty rates [10cea72d].
This development in Liberia highlights the need for greater financial transparency and accountability in the country's governance. The call for an audit of the Legislature is a response to the legislature's rent-seeking behavior and the disparity between lawmakers' high salaries and the country's struggling economy. The engagement of the General Auditing Commission to conduct a system review and subsequent financial statement audit is a positive step towards ensuring proper management of public funds and combating corruption. The audit will provide valuable insights into the financial operations of the legislature and help identify areas for improvement. Implementing financial autonomy for the legislature will further enhance accountability and reduce the potential for misuse of public funds. These measures are crucial for promoting good governance and rebuilding public trust in Liberia's leadership [10cea72d].
In a related development, the Citizens’ Initiative for Dialogue (CID) in Liberia is encouraging citizens of Gbarpolu, Grand Bassa, and Margibi Counties to take an interest in the Revenue Sharing Act of 2022. The act serves as a pillar for the successful implementation of the Local Government Act of 2018. The CID held awareness sessions in three districts in each of the counties to increase citizens' understanding of how revenues will be generated and shared between central and local governments. The project is funded by the United Nations Development Programme and is being implemented in five counties. Participants in the awareness sessions requested copies of the Local Government Act of 2018, the 10 Year Implementation Plan of 2020, and the Revenue Sharing Act of 2022 to constantly refresh their minds on the laws and serve as ambassadors in their communities. They also requested similar awareness sessions with the newly appointed local authorities to enhance their understanding of the Local Government Act of 2018 [f26857fc].
This initiative by the CID highlights the importance of citizen engagement and awareness in promoting effective governance. By encouraging citizens to take an interest in the Revenue Sharing Act of 2022, the CID aims to increase transparency and accountability in the management of public funds. The awareness sessions held in Gbarpolu, Grand Bassa, and Margibi Counties provide citizens with valuable information on how revenues will be generated and shared between central and local governments. By equipping participants with copies of relevant laws, the CID empowers them to become ambassadors in their communities and actively contribute to the implementation of the Local Government Act of 2018. Similar awareness sessions with local authorities further enhance citizens' understanding of the law and promote effective governance at the local level [f26857fc].
In addition to the efforts in Liberia, a Congressional watchdog in the United States has stated that it is unable to determine if the federal government's consolidated financial statements are reliable. This is not the first time the watchdog has made this determination. The concerns over the reliability of U.S. financial statements further emphasize the importance of financial transparency and accountability in governance systems. Both Liberia and the United States are grappling with the need to ensure proper management of public funds and combat corruption. The inability to determine the reliability of financial statements raises questions about the effectiveness of financial oversight and the potential for misuse of public funds. It underscores the need for comprehensive audits and financial accountability measures to rebuild public trust in the governance systems of both countries [61cd313b].
Costa Rica is also facing concerns about the oversight of public funds. The country is currently debating a proposed referendum to reform the Comptroller General's Office, which has raised concerns about the oversight of public funds. The referendum, called the 'Jaguar Law,' aims to amend several articles of the CGR's Organic Law and Internal Control Law. Critics argue that the reforms could lead to unchecked spending and reduced accountability, while the government claims it will improve efficiency. The CGR, led by Marta Acosta, has expressed grave concerns about the proposed changes, warning that they could facilitate corruption and hinder the identification of illegalities in public projects. President Rodrigo Chaves supports the reforms, stating that they will strengthen the Comptroller's Office and attract more foreign investment. The referendum proposal is currently under review by Congress, and the timeline for the referendum process is yet to be determined. The debate highlights broader concerns about transparency in Latin America and the balance between economic development and public oversight [c2260309].
Bank of America warns about the threats posed by the 'Jaguar Law' proposed by President Rodrigo Chaves. The law aims to promote the development of Costa Rica and includes reforms to the Comptroller's Office Law, the construction of Government City, and expanding Japdeva's powers. The law may weaken the Comptroller General of the Republic and affect checks and balances in the political system. The proposed changes would limit the power of the Comptroller's Office to review the legality of public procurement contracts prior to execution. President Chaves denies that the law weakens the tools of the Comptroller's Office, but the Comptroller herself argues that it evades control of public funds. Bank of America believes that the Costa Rican economy benefits from strong checks and balances. Costa Rica has solid economic growth prospects and a track record of fiscal consolidation. The law is currently under consideration and may have implications for Costa Rican economic stability [4b4d3471].