Minister Nagbe Clarify On Donor Funds Movement
Amid observation by some donor partners regarding the removal of funds by government from donors’ accounts to the Government’s consolidated accounts, the Minister of Information, Lenn Eugene Nagbe, has clarified that the government of Liberia did so in order to settle some expenditures.
A diplomatic informal note signed by a total of nine donor partners, including the European Union, Embassies of France, Japan, USA and Germany, among others, expressed dissatisfaction over the temporary removal of funds from a variety of donor accounts.In the note, which was addressed to the government of Liberia, the donors urged the government to ensure that any funding that has been removed from donor accounts for expenditures outside of agreed uses is restored, urging further that such unacceptable practices be halted.
“This government has nothing to hide, this government is transparent. This government is not operating in the dark,” Nagbe stressed.
The Information minister clarified that the government only borrow from donors account in times of constraints, citing that the government of Liberia always restitutes any amount that is borrowed from donor accounts.
He revealed that the government of Liberia paid over US$2 million to address similar issue upon the ascendancy of President George Weah which, according to him, was moved from the donor accounts into the government’s consolidated accounts by former Minister of Finance and Development Planning, Boima Kamara.
Addressing the Ministry of Information regular press briefing in Monrovia on Thursday, Nagbe emphasized that the government of Liberia temporarily moved funds from donor accounts in order to handle government expenditures with the commitment to immediately replace same.
He said the issue of moving funds intended for donor programs to settle government’s expenditure was a regular practice by past governments, terming it as an age-old problem faced by donors in Liberia that need to be addressed.
Nagbe stated that the movement of funds is a technical accounting administrative issue that needs to be amicably handled by the government, adding that “these things happen when there is a cash flow issue.”
However, the Information Minister disclosed that President Weah has issued a strict mandate prohibiting the movement of funds from donor accounts to government’s consolidated accounts, citing that the issue will be amicably resolved so as to satisfy the donor community.
He indicated that “President Weah has ordered the fencing of donors’ funds.”
“We have been having conversations with the donors about the funds, and we have assured them that after our financial position improves we will refund the amount in question,” Nagbe asserted.
According to Nagbe, President Weah has mandated the Minister of Finance and Development Planning to ‘ring fence’ donors funds, thus separating it from the government’s consolidated accounts. Courtesy LINA