0 Auditor General’s Draft Report on Ministry of Public Works for FYs 2009/10 to 2011/12
AUDITOR GENERAL'S REPORT
ON THE MINISTRY OF PUBLIC WORKS
FOR FISCAL YEARS 2009/10 TO 2011/12
AUGUST 2014
Yusador S. Gaye, CPA, CGMA 0 Auditor General Ensuring Accountability of Public Resources
1 Auditor General’s Report on Ministry of Public Works for FYs 2009/10 to 2011/12
Republic of Liberia
The Honourable Speaker of the House of Representatives and the President Pro- Tempore of the House of Senate:
We have undertaken the audit of the Ministry of Public Works’ (MPW) financial statements for the fiscal years ended July 1, 2009 through June 30, 2012. The audit was conducted under the Auditor General’s statutory mandate, as provided for under chapter 53.3 of the Executive Law of 1972.
Findings conveyed in this report have been formally communicated to the Management of the Ministry of Public Works (MPW). Where responses have been provided by the Ministry of Public Works on the report’s findings, these have been evaluated and incorporated in this report.
Given the significance of the matters raised in this report, we urge the Hon. Speaker and the members of the House of Representatives and Hon. Pro- Tempore and members of the Liberian Senate to consider the implementation of the recommendations conveyed herein with urgency.
Monrovia, August 2014
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TABLE OF CONTENT 1 EXECUTIVE SUMMARY ……………………………………………………………………………..6
1.1 Background ………………………………………………………………………………………………………………….6
1.2 Significant Findings and Recommendation ……………………………………………………………………… 7
1.2.1 Operational Matters ………………………………………………………………………………………………..7
1.2.2 Internal Control-Related Matters ……………………………………………………………………………. 8
1.2.3 Financial Matters ………………………………………………………………………………………………….. 9
1.2.4 Administrative Matters …………………………………………………………………………………………..10
1.2.5 Accountability Statement ……………………………………………………………………………………….11
2 DETAILED REPORT ………………………………………………………………………………..12
2.1 Introduction ……………………………………………………………………………………………………………….12
2.2 Mandate of MPW ……………………………………………………………………………………………………….. 12
2.3 Key Personnel of MPW ……………………………………………………………………………………………….. 12
2.4 Audit Objectives ………………………………………………………………………………………………………….13
2.5 Audit Methodology …………………………………………………………………………………………………….. 13
2.6 Limitation of Responsibility …………………………………………………………………………………………. 14
2.7 Limitation of Scope ……………………………………………………………………………………………………. 14
2.8 Detailed Findings and Recommendations ……………………………………………………………………… 15
2.8.1 Operational Matters ……………………………………………………………………………………………… 15
2.8.2 Internal Control-Related Matters …………………………………………………………………………….24
2.8.3 Financial Matters …………………………………………………………………………………………………..30
2.8.4 Administrative Matters …………………………………………………………………………………………..40
3 ACKNOWLEDGEMENT …………………………………………………………………………….53
4 ACCOUNTABILITY STATEMENT…………………………………………………………………54
5 TABLE OF ANNEXES ……………………………………………………………………………….55
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ACRONYMS USED
Acronym Meaning AG Auditor General AOM Audit Observation Memorandum GAC General Auditing Commission GOL Government of Liberia MPW Ministry of Public Works IAA Internal Audit Agency IAU Internal Audit Unit ICIF Internal Control Integrated Framework COSO Committee of Sponsoring Organization of the Treadway Commission ITC Information Technology and Communication IPSAS International Public Sector Accounting Standards PAN Personnel Action Notice LIPA Liberia Institute of Public Administration ISSAI International Standard of Supreme Audit Institutions SSF SSF Entrepreneur, Inc. CHICO China Henan International Cooperation Group CICO China Chongqing International Cooperation WASH Water Sanitation and Hygiene IIU Infrastructure Implementation Unit PFM Public Financial Management PPCA Public Procurement & Concession Act DMA Deputy Minister of Administration GPA Grade Point Average MOU Memorandum Of Understanding GIMPA Ghana Institute of Management & Public Administration MOF Ministry of Finance CSA Civil Service Agency GSA General Services Agency
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AUDITOR GENERAL'S CONCLUSION ON THE MINISTRY OF PUBLIC WORKS FINANCIAL TRANSACTIONS AND RELATED RECORDS OF ACCOUNTS FOR THE FINANCIAL YEARS 2009/10 through 2011/12
The Ministry of Public Works management did not compile financial statements for the financial year 2011/12 under review. Financial statements prepared for the 2009/10 and 2010/11 fiscal years were not prepared on the basis of IPSAS Cash Basis Accounting and the Regulation I.11, PFM Regulations, 2009 as prescribed by the Government of Liberia. The MPW did not provide General Ledger, Trial Balance and full disclosure notes as basis of the financial statements produced. As a result, we could not validate the annual expenditure of US$20,819,065.62, US$29,805,179.97 and US$ 34,970,606.58 disbursed respectively within the three financial years, 2009/10, 2010/11 and 2011/12.
The MPW management failed to maintain and present a Fixed Assets Register for the financial years 2010/11 and 2011/12. The fixed assets register prepared for the financial year 2009/10 did not include vital information such as names of vendors and the acquisition cost of the assets.
The Ministry of Public Works entered into forty seven (47) Roads and bridges; one hundred forty seven (147) wells and thirty (30) latrines construction contracts with various contractors in the fifteen Counties of Liberia. Twelve (12) of those roads construction projects reviewed failed to implement fully the scope of work for which funds were received from the Ministry. Payment vouchers and contracts in some instances could not be provided for our review. Some of the in completed and abandoned projects were the results of non-coordinated contracts terms enforcement on the part of the MPW administration.
The Resident Engineers’ reports for three (3) of the twelve (12) failed projects could also not be provided for our review to ascertain the level of works implemented by the contractors. The amount paid for the twelve projects totaled US$2,122,929.12 for roads and bridges projects; however, the terms of the contracts were not fully implemented. In the absence of the Resident Engineers’ reports, the former Deputy Minister for Technical Services of the Ministry of Public Works, Jenkins J. Mends-cole signed certificate of completion for Finda Architecture which failed to implement fully the contract terms for which funds were paid from the Ministry’s account.
Four out of six contractors hired to construct wells and latrines failed to deliver as required under their respective advance payment works. Those four contractors are Aquifer Services, Youth Care Inc, Zakimah Continental Holding Company, and General Fabrication and Construction Business Corporation in the amounts of US$14,022.75, US$30,955.20, US$45,582.00 and US$61,716.00 respectively to be accounted for by the four companies for their failure to construct the wells and latrines.
During an analysis of forty-two (42) payment vouchers for fuel and lubricants selected for review from a population of 90 external payment vouchers with a total value of US$2, 551,429.65, we observed that payment voucher number MPW-409-000091 in favor of Ducor Petroleum for fuel
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and lubricants supplied with a value of US $307,684.00 as arrears were processed and paid by the Ministry of Finance through a budgetary transfer in FY 2010/2011, from a line item, roads and bridges instead of the amount being paid from General claims/Domestic Debts given that the debt was incurred by the Ministry of Public Works in 2007/2008 fiscal year for the supply of fuel and gasoline
Based on the audit work performed, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for the conclusion. Accordingly, we do not express any conclusion on the available accounts and related records of the Ministry of Public Works for the financial years ended June 30, 2010, 2011 and 2012.
Monrovia, August 2014
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1 EXECUTIVE SUMMARY
1.1 Background 1.1.1 The audit of the Ministry of Public Works (MPW) was commissioned by the Auditor-General (AG) on March 4, 2013, under the statutory mandate of the Auditor-General as provided for under Chapter 53.3 of the Executive Law of 1972. The audit covered three financial years of the Ministry, July 1, 2009 to June 30, 2012. It was undertaken by a Team of Auditors drawn from the GAC.
1.1.2 The mandate of the MPW, as provided for under Chapter 27 of the Executive Law of 1972, includes, among others, to design, construct, improve and maintain, directly or by contract, all highways, streets, roads, bridges and storm sewers. The MPW may also undertake directly or by contract, the construction of sanitary sewers, hospital, public buildings, and other public works which are built for other Ministries or agencies of the Government, exclusive of public authorities.
1.1.3 The audit objectives were derived from the GAC's enabling enactment as well as the MPW's objectives as stipulated in the Ministry’s vision and mission. GAC’s enabling enactment, Chapter 53, Executive Law of 1972, Section 53 (7), requires the AG to call the attention of the National Legislature to matters, if relevant to any audit undertaken. Also, the audit focused on works delivery in the three Departments of the MPW, namely Administration, Technical Services and Rural Development & Community services, and the accountability exercised in the delivery of those works.
1.1.4 The audit was conducted in accordance with the International Standards of Supreme Audit Institutions (ISSAIs). Those standards require that we plan and perform the audit to obtain reasonable assurance that the records on the financial dealings of the MPW are free of material misstatements. In furtherance of this, we undertook audit procedures as would enable us to attain the above objectives.
1.1.5 We reviewed the systems and management controls operated by the MPW only to the extent we considered necessary for the effective performance of this audit. As a result, our review may not have detected all weaknesses that existed or all improvements that could be made.
1.1.6 We were not able to obtain all necessary documentation for purposes of the audit. The scope of the audit was thus limited by MPW’s failure to provide the required documentation. Details of this documentation are provided in the Detailed Report segment of this report.
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1.2 Significant Findings and Recommendation
1.2.1 Operational Matters 1.2.1.1 The MPW entered into water, sanitation and hygienic procurement contracts with six local companies for the period under audit. The contracts were entered into on December 15, 2010 with a duration of three (3) months. In all, the local companies were to construct a total of 147 wells and 30 Latrines valued at US$620,992.71 in the 15 counties of Liberia. Of the number of wells and latrines earmarked for construction, 112 wells and 22 latrines were not undertaken at all in eleven of the fifteen Counties (i.e. Lofa, Gbarpolu, Grand Bassa, Bong, River Cess, Grand Kru, Maryland, Sinoe, Grand Gedeh, River Gee and Nimba). We did not sight any construction of wells and latrines in these counties. The remaining four Counties had varying levels of contract execution, ranging from about 30 to 100 percent, and some of the wells and latrines constructed were not based on the specification in the Bills of Quantities.
1.2.1.2 In all of the 15 Counties, the contractors failed to deliver as required under their respective contracts. Four out of six of the contractors failed to perform on the advance payment received in an amount of US$152,275.95 while the remaining two contractors performed work more than the advance received in excess of US$26,923.58. Despite the provision of performance bonds by the contractors, the MPW Management did not enforce the guarantees. The ministry waited for 9 months to issue letters of cancellation of the six contracts on December 19, 2011, after the contractors had failed to complete the contracts terms which should have been completed by March 15, 2011. The failure by the MPW’s management to maintain effective contract administrators in the localities of the projects contributed to the provision of poor quality works and/or abandonment of some of the projects.
1.2.1.3 The MPW’s Management must, among others, provide substantive justification for its failure to maintain effective contract administrators in the localities of the projects and also to realize the performance bonds provided by the defaulting contractors, on account of their default.
1.2.1.4 Forty seven (47) roads construction contracts were entered into by the MPW during the period under review in the various counties of Liberia. Out of the forty seven roads construction contracts twelve of the projects’ reviewed amounted to US$4,314,198.30, while US$2,122,929.12 of the amount was paid to the contractors for the roads construction. Our review indicated that nine (9) projects were not completed, while three (3) were abandoned as at the time of reporting. We noted that some of the uncompleted and abandoned projects were the results of non-coordinated contracts enforcement by MPW’s administration. The Resident Engineers’ reports on some of the failed contracts could not be provided for our review to ascertain the level of works implemented by the contractors.
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1.2.1.5 Conflict of interest in the award of the contracts may have given rise to the state of affairs observed. Also, MPW's failure to enforce contract administration on those awarded led to the breach of contract terms by the contractors.
1.2.1.6 The MPW’s Management must, among others, provide substantive justification for the contractors' failure to complete the projects after being paid for by the Ministry. The MPW’s Management must also provide all the Resident Engineers' reports on the failed projects for which an amount of US$2,122,969.12 was disbursed by the Ministry.
1.2.2 Internal Control-Related Matters 1.2.2.1 We noted these exceptions from the MPW Internal Audit Unit (IAU) operations: The IAU has an un-approved Internal Audit Control Manual, prepared with the technical and production assistance of USAID. The non-approval of the document takes away its essence as a guiding tool; the IAU did not have a budget line to support its programs; there was no written provision from the Ministry's Management providing the IAU unrestricted access to all records, assets and personnel of the Ministry; the IAU lacked capacity in terms of staff competence and training; and the MPW management could not provide evidence that the established Audit Committee implemented internal Audit report from meeting held as required by Regulation K.10, PFM Regulations, to enhance IAU's independence in its operation.
1.2.2.2 In this state of affairs, IAU may not be able to identify weaknesses in the internal control of the Ministry. The MPW management should, among others, on the basis of needs assessment undertaken, recruit an adequate proportion of competent and experienced staff to effectively operationalize the IAU and also provide professional training and certification in auditing and investigation.
1.2.2.3 For the periods under review, the MPW IAU did not conduct any risk assessment on the Ministry to understand the risks the MPW management faced in achieving its objectives. As recommended under the Internal Control Integrated Framework, published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), we suggest that the MPW’s Management should establish a risk assessment policy which would set the basis for conducting risk assessment within the Ministry and to also determine the risk that may impact negatively the achievement of the entity’s objectives.
1.2.2.4 We noted these deviations in connection with the operations of the MPW Information Technology and Communications Department: The Ministry has not instituted any approved ITC policy to guard the use of internet, computers and other communication equipment; MPW did not have an IT strategic plan and no IT Steering Committee had been established; there was lack of training for most of the Ministry's personnel to effectively and efficiently manage the IT system of the Ministry; backup files were often transported via emails without appropriate procedures in place to safeguard such
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transfers; and there was no evidence that the Ministry's management periodically reviewed the system security logs or users access reports.
1.2.2.5 Lack of defined and documented Management approved policies and procedures for the Ministry’s information systems and data may lead to their misuse and exposure to viruses attacks. The MPW Management must, among others, institute and implement an approved IT policy, strategic plan and Steering Committee to provide guidance in its IT operations as well as safeguard the use of internet, computers and other communication equipment.
1.2.3 Financial Matters 1.2.3.1 For the periods under review, MPW Finance Department did not maintain adequate books of account, including General Ledger and Trial Balance; there were no financial statements available for 2011/12 financial year.
1.2.3.2 The omissions noted above constitute non-compliance with Sections 6.7.1 and 6.7.2 of the MPW Financial Controls Manual. The MPW Management must, among others, ensure adherence to the provisions of the Financial Controls Manual, closely monitor the operations of the Ministry's Finance Department and maintain all books of account, including General Ledger and trial balance.
1.2.3.3 For the periods under review, the MPW Finance Department disbursed material amounts through petty cash to the Ministry's Bureaus and Departments. Review of the petty cash vouchers disclosed several violations which include the failure of the Chief Accountants Samuel D. Kollie and Bonar Kerkula to approve petty cash vouchers. Replenishment reports made by sub-custodians lacked cash receipts to support the payment from the petty cash and some petty cash vouchers bore ambiguous receipts with description such as assorted goods or assorted items. In some instances petty cash was disbursed as loan to some employees in violation of the Ministry's own policy on petty cash. We noted that payments totaling US$20,567.35 and L$222,155.00 through petty cash were made without the necessary documentation.
1.2.3.4 The use of petty cash, as observed, would provide opportunities for abuse of the Ministry's liquid resources. The MPW’s Management must, among others, strictly adhere to the provisions of Regulations Q4 (1), Q.59(c), and Q.8 (2), PFM Regulations, and the Financial Controls Manual of the Ministry. On no account should petty cash be used for unauthorized purposes.
1.2.3.5 For the financial year 2011/12, the MPW did not prepare the statement of cash receipts and payments and other relevant disclosures, as required by Regulation I.11, PFM Regulations, 2009 and the Government of Liberia’s Directive of 2009, adopting International Public Sector Accounting Standards (IPSASs) Cash Basis of Accounting; instead it prepared budget performance report.
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1.2.3.6 The inconsistency in the presentation of MPW financial reporting could lead to the failure by Government to implementing the Cash basis of accounting. The MPW Management must also provide substantive justification for its failure to compile its financial reporting in accordance with the above requirements. The MPW Management must prepare the 2009/2010, 2010/2011 and 2011/2012 financial statements as required under the extant regulatory framework and submit same for validation.
1.2.3.7 Disparities were noted in expenditures incurred and reported from the MPW payment vouchers and its budget performance reports for telephone, telex, fax and courier services covering the three financial years under review. The disparities in total amounted to US$4,290.70.
1.2.3.8 The above omission noted implies that there is a risk that expenditures reported to have been incurred by the Ministry were inaccurate either due to inappropriate accounting procedures, poor record keeping, error or fraud. This may impact financial reporting by the Ministry as a whole.
1.2.3.9 To stem this risk, the MPW Comptroller must ensure that all entries made into books of prime entry are reconciled with their related source documents on a timely basis and any differences observed should be documented, investigated and reported.
1.2.4 Administrative Matters 1.2.4.1 Relevant documentations required to be maintained on personnel files under Section 1.2.5 of the 1983 Standing Orders of the Civil Service Agency were absent on thirteen personnel files. This documentation includes letters of appointment, Personnel Action Notice (PAN) forms, curriculum vitae, medical reports, academic qualifications, salaries drawn and details of progression by way of promotions. We also noted 19 employees whose names were on the Ministry's payroll but not on the MPW personnel listing.
1.2.4.2 The manner in which the personnel records were kept could make possible the inclusion of ghost workers on the payroll. The MPW Management must, among others, update the personnel files and ensure that there is due compliance with the Section 1.2.5 of the 1983 Standing Orders of the Civil Service. This should include monthly updates
1.2.4.3 The MPW Management awarded international scholarships to two staff of the Ministry, in contravention of the requirements of Section 7.3(a) of the Ministry of Public Works Human Resource Policies & Procedures Handbook. The violations involved, among others, non- compliance with provisions such as submit request for scholarship to the appropriate Assistant Minister through a supervisor; said request should first be vetted by HR sub- committee before submission to Deputy Minister for Administration for approval; applicant must be in the employ of MPW for a period of 2 years and must obtain and maintain a minimum of 3.00 GPA and requirement for applicant to sign an MOU with the Ministry, before being granted the scholarship. The omissions observed could cause the Ministry to
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lose large sums of money in training employees without long-term benefits accruing to the Ministry and Government of Liberia. The MPW Management must, among others, provide substantive justification for awarding foreign scholarships to its personnel, in violation of the Ministry's human resource polices on scholarships.
1.2.4.4 Several travels undertaken by personnel of the Ministry were not supported by retirement of incidental allowance granted to them for their travels, upon their return from their trips. We noted that US$1,500 from the foreign travels remained unaccounted for.
1.2.4.5 Failure by the MPW Management to adhere to control procedures and provisions contained in the GOL’s extant regulations on travels could undermine the financial management of the Ministry and have negative impact on the efficient implementation of other budgeted activities. The MPW Management must, among others, strictly comply with the Guidelines and Procedures on Per Diem and Incidental Allowances specified in the extant Travel Executive Ordinances.
1.2.4.6 The MPW did not prepare and maintain Asset Register for financial years 2010/11 and 2011/12 and the Register prepared for the financial year 2009/10 did not include vital information such as asset description, cost, year of acquisition, among others. Most of the assets of the Ministry, including bikes, Office Furniture, Computers and other removable equipment, were not coded.
1.2.4.7 Non-maintenance, and coding, of fixed assets by the MPW carries the risk that its assets could be misappropriated without being noticed. The MPW management must, among others, ensure that the Ministry’s Logistic Section prepares and maintains Asset Register in which all its assets and related information are included for the purpose of accountability. The assets must be coded as well.
1.2.4.8 Analysis of 13 payment vouchers out of 42 examined on fuel and lubricant procured for the period under review, disclosed that 136,442 gallons of fuel purchased valued at US$461,312.00 could not be reconciled or traced to the fuel receiving log at the Ministry. The Head of MPW Procurement Department, must ensure that all fuel received is recorded in the fuel receiving log before distribution to end users for effective reconciliation.
1.2.5 Accountability Statement 1.2.5.1 Overall, both financial and administrative activities undertaken by Ministry of Public Works’ Management during the period under review were characterized by a number of financial irregularities and control deficiencies. The financial irregularities noted amounted to US$2,297,272.07 and L$222,155.00 and involved non-accountability for contracts, irregular payment for services, inability to account for fuel bought that could not be traced to the fuel log, among others. Details of these irregularities are provided in Annex I.
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2 DETAILED REPORT
2.1 Introduction 2.1.1 The audit of the MPW is the third undertaken by the Auditor-General of Liberia on the Ministry. It was commissioned by the Auditor-General on March 4, 2013, under the statutory mandate of the Auditor-General as provided for under Chapter 53.3 of the Executive Law of 1972. The audit covered three financial years of the Ministry – i.e. from July 1, 2009 to June 30, 2012. It was undertaken by a Team of Auditors drawn from the GAC.
2.2 Mandate of MPW 2.2.1 Chapter 27 of the Executive Law of 1972 created the MPW in the Executive Branch of the Government. The Minister of Public Works is the Head of the Ministry. The responsibilities of the Minister include, among others, to design, construct, improve and maintain, directly or by contract, all highways, streets, roads, bridges and sewages. The Minister is also in charge of, directly or by contract, the construction of sanitary sewages, hospitals, public buildings, and other public works which are built for other Ministries or agencies of the Government, exclusive of public authorities. The Minister is to cooperate with the representatives of such Ministries or agencies in planning and carrying out such construction.
2.3 Key Personnel of MPW 2.3.1 For the period under review, the key personnel of the MPW are indicated in the table below:
Table A. Period Office Name Rank Service Location Samuel Kofi Woods II Former Minister 2009-2013 Lynch Street Stephen M. Yekeson Jr. Former Deputy Minister for Administration 2012- 2013 Lynch Street Johnson Gwaikolo Former Deputy Minister for Administration 2009-2011 Lynch Street
Victor B. Smith Former Deputy Minister for Technical services 2012- 2014 Lynch Street
Jenkins J. Mends-cole Former Deputy Minister for Technical Services 2009-2012 Lynch Street
Christian Herbert Former Deputy Minister for Rural Development 2012- 2014 Lynch Street Charles Carpenter Former Deputy Minister of Rural Development 2008-2011 Lynch Street Edward Edsel Smith Asst. Minister for Technical Services Bureau 2008-present Lynch Street Sumowou Harris Asst. Minister for Feeder Roads Bureau 2006-2013 Lynch Street Samuel Nagbe Asst. Minister, Planning and Programming 2010-present Lynch Street George Yarngo Asst. Minister for Community services Bureau 2007-present Lynch Street William Slour Former Asst. Minister for Operations Bureau 2009-2014 Lynch Street Napoleon Chattah Former Asst. Minister for Construction Bureau 2006-2010 Lynch Street Andrew K. Kear, sr Former Asst. Minister Administration 2010-2014 Lynch Street Klohn Jargbah Former Assistant Minister for Administration 2008-2011 Lynch Street 12
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Period Office Name Rank Service Location Abraham B. Samukai Former Comptroller 2009- 2014 Lynch Street Joseph Y. Forkpah Former Deputy Comptroller 2011- 2014 Lynch Street Wion B. Kanteah, sr Former Director Procurement 2009- 2014 Lynch Street Vincent Smith Former Director of personnel 2012- 2014 Lynch Street
2.4 Audit Objectives 2.4.1 The objectives of the audit are derived from the enabling enactment of the GAC as well as the MPW objectives as stipulated in the Ministry’s vision and mission. GAC’s enabling enactment, Chapter 53, Executive Law of 1972, Section 53 (7), requires the AG to call the attention of the National Legislature to the following matters, if relevant to any audit undertaken: Any officer or employee who has willfully or negligently failed to collect or receive monies belonging to Government;
Any public monies not duly accounted for and paid into an authorized depository;
Any appropriation that was exceeded or applied to an account;
Any deficiency or loss through fraud, default, or mistake of any person or group of person; and
Inadequate or ineffective internal control of public monies and assets.
PFM Regulation C.9. Section 3 states that, ‘Delegation of authority to perform functions or duties under these regulations does not diminish the accountability of the head of Government Agency or relieve him or her of responsibilities provided in these regulations’.
2.4.2 Additionally, the audit focused on works delivery in the three Departments of the MPW, namely Administration, Technical Services and Rural Development & Community Services, and accountability exercised within these works delivery.
2.4.3 The main objective of the audit is to express opinion/conclusion on the MPW’s financial statements/financial transactions for the financial years 2009/10, 2010/11 and 2011/12.
2.5 Audit Methodology 2.5.1 The audit was conducted in accordance with the International Standards of Supreme Audit Institutions (ISSAIs) using a risk based approach. Those standards require that we plan and perform the audit to obtain reasonable assurance that the records on the financial
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transactions of the MPW are free of material misstatements. In furtherance of this, we undertook audit procedures as would enable us to attain the above objectives.
2.5.2 Our review also took cognizance of the requirements under the Auditor General’s mandate as spelt out under Sections 53.3 Our audit approach included discussions with management, test checks on areas we considered as high risk, which included physical verification of roads and building constructions and other fixed assets.
2.5.3 While the audit was not directed at reporting the following, we focused also on MPW Management’s responsibility to undertake activities in an effective and efficient manner:
Non- effective performance of operations- relates to management of the Ministry of Public Works responsibility to undertake activities in a non- effective and efficient manner.
Instances of non-compliance with authorities- relates to management of the Ministry of Public Works non-exercise of responsibility to use resources, and fulfill accountability requirements, in accordance with applicable agreements, laws and regulations governing the agency’s financial statements compilation.
Waste – relates to Management of the MPW non-exercise of responsibility to obtain and apply resources in an economical manner, without any public money being wasted.
Instances of abuse- relates to Management of the Ministry of Public Works non- exercise of responsibility to meet the expectations of the National Legislature and the public as they relate to appropriate standards of behavior.
2.6 Limitation of Responsibility 2.6.1 We reviewed the systems and management controls operated by the Ministry only to the extent we considered necessary for the effective performance of this audit. As a result, our review may not have detected all weaknesses that existed or all improvements that could be made.
2.7 Limitation of Scope 2.7.1 We were not able to obtain all necessary documents for purposes of the audit. The scope of the audit was limited by MPW failure to provide us the following:
Third parties payment of World Bank and other International partner’s infrastructure funding to the Government of Liberia through MPW for 2011/12 financial year.
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The failure of MPW to prepare Financial Statements for financial year 2011/2012
The failure of the MPW to provide General Ledger and Trial balances for financial years 2009/10, 2010/11 and 2011/12.
2.8 Detailed Findings and Recommendations
2.8.1 Operational Matters
Failed Water, Sanitation and Hygiene Projects
Observation 2.8.1.1 Section 41, PPC Act, 2005, states that ‘the procuring Entity shall be responsible for the administration and monitoring of contracts entered into by the Entity’. The PPCA Regulation 18. 1, 2, 3, 4 and 5 also states that "the head of the Procuring Entity shall have oversight responsibility for the administration of the procurement contract. Pursuant to section 41 of the Act, the Procuring Entity may set up a team for the administration and monitoring of the performance of procurement contracts entered into by the Entity.
2.8.1.2 Where the context requires the Entity shall: Develop a contract administration mechanism that at least spell out the obligation under the contract, the responsible party and expected or contractual compliance or completion date of the obligation as a means of facilitating contract administration.
Cause to prepare written periodic updates on compliance with obligations under the contract.
In the event the entity is of the view that the procurement contract requires periodic written update, it shall spell out the period of review leading to the updates in writing and assign the responsibility of preparing the updates to named officials of the entity.
Where the context requires, the head of the Procuring Entity shall ensure that the contract administration and monitoring mechanism takes into account the need to link approval of financial disbursement to the performance of the obligations in accordance with the terms of the contract."
2.8.1.3 The MPW provided for our review six (6) Water, Sanitation and Hygiene procurement contracts entered into by the Ministry and several local companies for the period under audit. The details of the contracts, all of which were entered into on December 15, 2010
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with contract duration of three (3) months or ninety (90) calendar days (i.e. ending on March 15, 2011). The six companies were to construct a total of 147 wells and 30 Latrines valued at US$620,992.71 in the 15 counties of Liberia. The Local companies that received 40% of the contracts' sums and additional payments amounting to US$268,461.37 are presented in Annex II from the MPW. The contracts were signed on behalf of MPW By; Charles W. Carpenter, former Deputy Minister of Rural Development and witnessed by George K. Yarngo, Asst. Minister of Rural Development while the payment vouchers were signed by; Johnson Gwaikolo, former Deputy Minister for Administration, Jenkins J. Mends-cole former Deputy Minister of Technical Services and Abraham B. Samukai former Comptroller. The terms of the contract were as follows: The Ministry shall pay each contracting company an initial amount representing forty percent (40%) of the contract value for the start-up and mobilization upon presentation of a valid performance guarantee as stipulated in paragraph 5 below.
The Ministry shall pay each contracting company the amount representing thirty percent (30%) of the contract value upon issuance of the certificate of completion by the Ministry, certifying that sixty percent of the project has been satisfactorily completed.
The Ministry shall pay each contracting company the amount representing twenty percent (20%) of the contract value upon issuance of the certificate of completion by the Ministry, certifying that one hundred percent (100%) of the project has been satisfactorily completed.
The Ministry shall pay each contracting company the amount representing ten percent (10%) of the contract value and will constitute the retention payment of the project. This retention payment shall be made ninety (90) calendar days after completion of the project and after issuance of the certificate of satisfaction from the ministry certifying the project’s durability and good condition.
Each contracting company shall perform its work as assigned, but under no circumstance shall the company hold itself out as having any right, power or authority to create any contracts or obligation, either expressed or implied, on behalf of, in the name of or binding upon the Ministry, unless the Ministry consents thereto in advance and through writing.
Each contracting company hereby agrees to furnish all of the materials; equipment, Labor, technical expertise, incidentals and services required and shall perform all of the works shown and the specifications.
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The project is to be completed by each contracting company in accordance with the detailed scope of works and specifications contained in Exhibit C.
The duration of the contract is three months (3) or ninety (90) calendar days, beginning December 15, 2010 and ending March 15, 2011.
The performance Bond issued on behalf of each contracting company shall be valid for a period of five (5) months as of the inception date of the bond on November 26, 2010.
2.8.1.4 Contrary to the above requirements of the PPC Act and contracts entered into, the Ministry did not provide adequate contract administration in the localities the projects were earmarked for implementation. Of the 147 wells and 30 Latrines earmarked for construction, 112 wells and 22 latrines were not undertaken at all in eleven of the fifteen Counties (i.e. Lofa, Gbarpolu, Grand Bassa, Bong, River Cess, Grand Kru, Maryland, Sinoe, Grand Gedeh, River Gee and Nimba). We did not sight any construction of wells and latrines at all in these counties. The remaining four Counties had varying levels of contract execution, ranging from about 30 to 100 percent, albeit some of the wells and latrines constructed were not to the specification of the related Bills of Quantities.
2.8.1.5 The contractors that failed to deliver as required under their respective advance payment works were Aquifer Services, Youth Care Inc, Zakimah Continental Holding Company, and General Fabrication and Construction Business Corporation in amount of US$14,022.75, US$30,955.20, US$45,582.00 and US$61,716.00 respectively to be accounted for by the four companies. Despite the provision of performance bonds by the contractors, the MPW did not enforce the guarantees (i.e. performance bonds) - i.e. the Ministry failed to hold the insurance companies that guaranteed the performance of the contractors to account. The two other companies; Wologizzi Construction Company and B-Con Engineering Company completed works value more than the advance payments received from verification and payments vouchers made available in the amount of US$10,015.58 and US$16,908.00 respectively. See Annex II
Risk 2.8.1.6 The failure by The MPW Management to maintain adequate contract administrators contributed to the provision of poor quality works and/or the abandonment of the projects.
2.8.1.7 MPW's award of contracts to non-performing contractors could lead to theft of public resources through collusion between its officials and dishonest contractors.
2.8.1.8 The failure of the contractors to deliver as provided for under their respective contracts would impact the development agenda of GOL and in turn affect the well-being of the project beneficiaries.
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Recommendation 2.8.1.9 That all companies and their heads who received start-up and mobilization payments from the MPW but failed to deliver under the terms of their respective contracts in the amount of US$152,275.95 be made to account. These contractors are: Aquifer Services Youth Care Inc. Zakimah Continental Holding Company General Fabrication and Construction Business Corporation.
2.8.1.10 The MPW Management should provide substantive justification for its failure to realize the performance bonds provided by the defaulting contractors, on account of their default.
2.8.1.11 That MPW should reimbursed Wologizzi Construction Company and B-Con Engineering in the amount of US$10,015.58 and US$16,908.00 respectively for work executed in excess of the advance payment so that the companies can complete the work as required under the contract.
2.8.1.12 The MPW Management must institute effective contract administration for all contracts it awards. In particular, the Ministry should appoint Contract Administrators in localities where contracts are being executed.
2.8.1.13 The MPW Management must formally notify the Ministry of Justice about the failure of the contractors to implement projects for which they received start-up and mobilization funds from the Government of Liberia.
Management’s Response 2.8.1.14 The 26 wells and 6 latrines were completed when in fact there are 58 wells and 10 latrines by 4 (four) contractors in 8 (eight) counties. Perhaps, the GAC staff did not engage the relevant MPW Team members in the counties during their sites visitation exercises. A matrix is attached with the appropriate MPW staff for contact to authenticate the progress in the counties.
2.8.1.15 Although the MPW monitoring capacity at the county level is low, in many instances, most of the contractors were issued STOP ORDERS for sub-standard works until steps were taken to improve contract performance. i.e. WOLOGIZI- in Tubmanburg and Monrovia; B- CON-in Kakata, Robertsport and Bopolu Cities. (See attached a General Warning Alert Letters to all Contractors).
2.8.1.16 On December 19, 2013, a final termination letter (attached) was written to all contractors considering the snail manner and methods in which the projects were being executed after several extension requests had been granted.
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2.8.1.17 Contractors who fear being black listed or prosecuted have apologized and requested for contract renewal if applicable by Law to complete their respective tasks.
2.8.1.18 The Department of Rural Development and Community Services is in consultation with MPW Legal Office to confiscate materials delivered on sites and prosecute contractors that received public funds and failed to apply them to the contract agreements. (ZAKIMAH and GFABC are two prime contractors who did not install a single hand pump nor construct a single latrine with the mobilization funds provided by the ministry).
2.8.1.19 The MPW staffs in the counties are in readiness to complete the lining of culverts and blocks in excavated holes for wells and latrines that could be finished early if and only if PPC Act could allow.
2.8.1.20 The Department of Rural Development and Community Services is in consultation with MPW Legal Office for revision of the PPCA to allow pre-financing of the GOL WASH projects if and only if the PPC Act permits. See Annex II
Auditor General’s Position 2.8.1.21 During the Auditors' verification in the fifteen counties, they met Resident Engineers and WASH coordinators in their respective locations in contradiction of the management’s assertion that the GAC staff did not engage the relevant MPW Team members in the counties during their sites visitation exercises. If there are second layers of MPW staff in the counties that management was referring to, those staff listing and contacts were not provided by management.
2.8.1.22 The personnel Director of MPW, Mr. Vincent Smith provided the names of Resident Engineers and WASH Coordinators who the auditors contacted for purposes of the verification. The MPW Management failed to provide explanation as to why it did not realize the performance bonds provided by the defaulting contractors, on account of their default from the Insurance companies. The ministry waited 9 months to issue letters of cancellation to the six contracts on December 19, 2011, after they had failed to complete contract terms which should have been completed by March 15, 2011.
2.8.1.23 We acknowledge that the Ministry accepted the fact that six contractors failed to implement their contracts terms in the 15 counties as provided under the agreements. As indicated, the four contractors who could not perform work on the advance amount received should be turned over to the Ministry of Justice to recover the public funds received by the contractors from the MPW.
2.8.1.24 Also, the officials and former officials of Ministry of the Public Works who had supervisory authority over the contract should be reprimanded for their failure to recover the performance bond from the defaulting contractors.
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Non-Performance of Roads Construction Contracts
Observation 2.8.1.25 Section 22(2) of the PPC Act of 2005 states that “The head of an Entity shall be responsible for ensuring compliance with the provisions of the Act and shall not be absolved from accountability or responsibility because he/she delegated such functions.”
2.8.1.26 In line with the above provision, the Minister of Public Works, the Deputy Minister for Administration, the Deputy Minister for Technical Services, along with the Procurement Director, are responsible for ensuring that all provisions of the PPC Act of 2005 and the Administration of projects in the various counties are executed in accordance with the PPC Act and other standing regulations of the Government.
2.8.1.27 During the periods under review, it was observed that the Ministry entered into forty seven (47) road and bridges construction contracts with various contractors in the fifteen Counties of Liberia. Some of those contractors failed to implement the scope of work for which funds were received from the Ministry. Payment for Boniken-Yobloken and Harper- cavalla-Kablake road in Maryland County contracted to GAP Construction Company was made through a letter of credit at the Liberia Bank for Development and Investment (LBDI) in an amount of US$531,197.24. The terms of the letter of credit required that the Ministry of Public Works certified the completed percentage of work before the release of any cash. Our reviewed of GAP bank statement from LBDI showed that three payments were made in an amount of US185,919.03, US$159,353.17 and US$92,975.87 for the two projects. The MPW could not make available the Resident Engineer’s reports that authorized the three payments and the contract between GAP International and MPW
2.8.1.28 The payment vouchers and contract for Big- Swen to Grand Cess – feeder Road in Grand Kru County which was contracted to GAP was not made available for our review. Our field verification on the road between Boniken-Yobloken showed that the company did not construct lines of culverts at two separate points. According to the Resident Engineer for Maryland County, J. Alie Scott, the Danish Refugee Council installed logs and wood at those abandoned spots for vehicles access to the population in Yobloken. Also, aaccording to the Resident Engineer of Grand Kru, Varney Johnson, the Big- Swen to Grand Cess – feeder Road project was abandoned by GAP and S.S.F. Entrepreneur was hired to complete the rehabilitation.
2.8.1.29 Team Liberia received US$47,500.00 from MPW for the transportation and assembling of a bailey bridge on the Tarsue River in Sinoe County. During our verification, it was observed that Team Liberia only transported the Bailey bridge on the site and later abandoned the project. The Atlantic Resources Ltd intervened and constructed a log bridge on the Tarsue River for the free flow of traffic between Greenville and Buchanan.
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2.8.1.30 The Kakata- Borlola-Worhn road project was contracted to SWAGS Engineering & Construction Inc. The contract value amounted to US$948,987.83 and the Company received US$569,392.70. Physical verification showed that the company failed to execute the project in accordance with the scope of work or the bill of quantities. We observed abandoned culverts, a damaged bridge, and three lines of damaged galvanized culverts that needed to be replaced in accordance with the scope of work.
2.8.1.31 The verification of neighborhood road projects in Montserrado county showed that Genesis Liberia was awarded a contract to rehabilitate the Necklay Town to St. Francis road, Shoe Factory to St. Michael, MVTC to Topoe village to New Georgia roads in an contract amount of US$285,411.41 and received the amount of US$171,246.84. According to the Resident Engineer of Montserrado county, C. Seth Quaye Genesis Liberia failed to implement the project in full as specified in the scope of work after receiving the start-up and mobilization cost and second payment.
2.8.1.32 The Nimely Construction Company contract value amounted to US$431,041.08 but the company received US$129,312.32 to rehabilitate Rock Hole road, Bible Way road, Rehab Drive Block 4 Road, Darquee Town road, Police Academy to A.B Tolbert road, Chubor road, and Liberia Renaissance Education complex road and Caldwell North road. Our verification proved that the roads were in deplorable conditions. Residents along these roads were also interviewed and they stated that there had been no road rehabilitation work in said areas.
2.8.1.33 The Amandu Town to Royceville road in Bomi County project was valued at US$289,609.97. The contract was awarded to General Fabrication and Construction business Corporation in 2010. The work was abandoned after receiving an amount of US$86,882.99 from the MPW. Our verification showed that the road rehabilitation work did not reach Royceville as stated in the contract but rather stopped at Lehbah Town. We also observed four (4) lines of damaged culverts and twenty-one (21) pieces of abandoned culverts as well as a line of double galvanized culverts that needed to be replaced as spelt out in the contract agreement, which was not done.
2.8.1.34 Two road projects were awarded to FINDA Architecture and Construction Company with a contract value of US$573,399.36 to rehabilitate the Zorzor-Yealla and Zorzor- Gbanway road in Lofa County. The Company received US$344,039.60 as initial payment for both roads. During the verification, it was observed that some of the culverts installed lacked wing wall and head wing. Some materials abandoned in two forty-foot containers on the road were sighted. The Resident Engineer report on the project was not made available. The engineer report that was attached was signed by Joseph E. Quansah, project engineer of Techsult Liberia Inc which was used to issue certificate of completion upon which the payments were made. The contract or authority of the engineer (Techsult Liberia) that signed the report was not made available to the auditors.
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2.8.1.35 The Belefenia to Jorwah road project in Bong County which was contracted to Morwah Liberia Ltd could not be implemented fully due to the contractor’s inability to complete the work. The contract awarded to Morwah Liberia Ltd for the project amounted to US$625,792.72 of which US$187,737.82 was paid. The MPW authority wrote several letters of warning concerning the company inability to perform as stated in the agreement but the company failed to heed the advice which led to the termination of the contract by MPW on August 20, 2012, one year ten months after which the contract should have been completed.
2.8.1.36 The Yarpah Town – Saryah Town and Little Liberia- Timbo Beach road projects awarded to Crossroad Enterprise Inc and Friendship International after receiving US$123,613.78 and US$24,955.00 respectively failed to complete the projects in the county. The Auditors, along with the Resident Engineer visited the two roads and observed that they were incomplete. There were situations of several lines culverts which should have been installed on the road but were abandoned.
2.8.1.37 Some of the uncompleted and abandoned projects may have been the results of the inability of the contractors to perform as required. The Resident Engineers’ reports on some of the failed contracts could not be provided for our review to ascertain the level of works implemented by the contractors. In the absence of some of the Resident Engineers reports, we could not validate the actual work implemented by some contractors. Some of the contracts were signed by former deputy minister of Technical services, Jenkins J. Mends-cole, former Minister of Finance, Augustine K. Ngafuan, Minister of Justice, Cllr Christiana Tah, former Justice Minister Cllr Philip A. Z. Banks III, and former Public Works Minister Loseni Dunzo. The amount paid to the above contractors totaled US$2,122,929.12. The performance guarantees posted in line with the contracts were not taken advantage of to compel the contractors to perform. Annex III
Risk 2.8.1.38 Conflict of interest in the award of the contracts may have given rise to the state of affairs observed.
2.8.1.39 Failure to exercise due diligence in the contracts awarding process may have compromised the project.
Recommendation 2.8.1.40 The MPW Management must provide substantive justification for the contractors' failure to complete the projects after being paid for by the Ministry.
2.8.1.41 The MPW Management must provide some of the Resident Engineers' reports on the failed projects and ensure that the contractors be made to account for their failure to complete the terms of the contracts for which an amount of US$2,122,929.12 was disbursed by the Ministry.
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2.8.1.42 The MPW Management must submit the names of the contractors who failed to execute their respective responsibilities under their contracts to the Ministry of Justice for prosecution.
Management’s Response 2.8.1.43 With reference to Non- performance of road works, please see copies of actions letters that were issued by the ministry of Public Works to some contracts which include: Letter of termination of contracts and other legal actions attached. Please find below information addressing the above mentioned issue. Necklays town 90%, St. Francis 75%, Shoes Factory 60%, St. Michaels 20%, MVTC 80%, Topoe villiage 80% and New Georgia Gulf 0%. Works proceeding unacceptably slow- contractor (Genesis Liberia Inc) formally warned against undue delays. Yarpah Town- Saryah Town Road; 65% complete, unacceptable delays, no capacity, will be terminated if no significant progress by Crossroads Enterprise Inc in August 20, 2011.
2.8.1.44 Gbangua-kpaiyea-Zorzor road by Finda Architecture first and second payments. Belefanai- Jorwah Road by Morweh Liberia Ltd first and second payments. Little Liberia- Timbo beach road by Friendship International Industrial Corp first payment. The major areas of problematic contracts are contracts for works. The main reason while there is a problem is because MPW contracts are paid in advance on the achievement of certain milestones. Most contractors are not able to pre-finance because of the large amounts of money involved.
Auditor General’s Position 2.8.1.45 Management contends that these non-performance contractors were written letters of termination but the facts remain that these letters were long overdue. For instance, Morweh Liberia Ltd was expected to rehabilitate the Belefani to Jorwah road in Bong County for the duration of six months for which a total of US$187,737.82 was received but the company failed to implement the project at the completion date. The letter of termination was issued on August 30, 2012, one year ten months after the completion date.
2.8.1.46 Also, Finda Architecture and Construction Company was hired to reconstruct and rehabilitate the Gbangua to Kpaiyea to Zorzor and Zorzor to Yeala feeder roads but failed to complete the contract terms in 90 days after receiving an amount of US$344,039.60. Yet, the MPW management issued a letter of termination two years three months after the due date of completion. Additionally, the MPW Management failed to take recourse to the performance guarantees in the contracts, since there were delays in completing the projects within the timeframe.
2.8.1.47 The Ministry’s effort in issuing some of the contractors’ termination letters for their failure to perform was in the right direction but belated, due to the fact that the contractors abandoned the contracts many months before the Ministry’s action. It was also noted that
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Morweh Liberia Ltd and Crossroads Enterprise Inc Contracts were not authorized or signed by the Minister of Finance and Justice. We therefore maintain that all our recommendations including all the contractors mentioned in the report be turned over to the Justice Ministry for prosecution in order to recover the public funds received without completing the terms of the contracts.
2.8.1.48 Also, the officials and former officials of Ministry of Public Works who had supervisory authority over the contract should be reprimanded for their failure to provide the requisite supervision and administration.
2.8.2 Internal Control-Related Matters
Evaluation of the MPW Internal Audit Division
Observation 2.8.2.1 Internal audit is an essential component of internal control. International Organization of Supreme Audit Institutions (INTOSAI) Standard 9100 defines internal control as "an integral process that is effected by an entity’s management and personnel and is designed to address risks and to provide reasonable assurance that in pursuit of the entity’s mission, the following general objectives are being achieved: Executing orderly, ethical, economical, efficient and effective operations; Fulfilling accountability obligations; Complying with applicable laws and regulations; Safeguarding resources against loss, misuse and damage".
2.8.2.2 The standard further explains that "internal control is a dynamic integral process that is continuously adapting to the changes an organization is facing. Management and personnel at all levels have to be involved in this process to address risks and to provide reasonable assurance of the achievement of the entity’s mission and general objectives".
2.8.2.3 The Ministry of Public Works during the periods under review had an Internal Audit Unit (IAU) in place which was established in June 2008. However, the IAU had some limitations in executing its mandate appropriately during the period under review. The following exceptions were observed in the IAU's operation: The Ministry’s Internal Audit control manual, prepared in August 2010 with the technical and production assistance from USAID, has not been approved by the administration. This could be a limitation in evaluating the work of the Unit.
The lack of Audit Committee to ensure independence in the execution of the IAU's functions and the implementation of the IAU's recommendations by the Ministry.
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The IAU did not have a budget line to support its programs. This served as a limitation in the timely delivery of its programs that is essential in promptly reporting on contract management.
There was no adequate deployment of staff and other resources that could correspond with the needs of the IAU.
There was no written provision from the Ministry's Management providing the IAU unrestricted access to all records and assets of the Ministry.
The IAU lacked capacity in terms of staff competence and training and this limitation impacted its audit techniques and procedures.
The IAU had not conducted any detailed risk assessment including fraud risk assessment of the Ministry.
Risk 2.8.2.4 Management may not be able to identify weaknesses in the internal control as the IAU has not conducted any detailed risk assessment and fraud risk assessment on the Ministry.
2.8.2.5 Fraud may not be prevented and detected as the IAU was not fully functional. The risk of fraud and error may exist due to the inadequacy of the IAU.
2.8.2.6 Lack of compliance and implementation of other elements of control would lead to ineffective internal audit, compromising efficiency and the regularity of transactions in public financial management.
Recommendation 2.8.2.7 The MPW Management should, on the basis of needs assessment undertaken, recruit an adequate proportion of competent and experienced staff to effectively operationalize the IAU and also provide professional training and certification in auditing and investigation.
2.8.2.8 The MPW Management must incorporate in the IAU's charter, a provision providing the IAU unrestricted access to all records, assets and personnel at all levels of the Ministry.
2.8.2.9 On the basis of the IAU's approved budget, the MPW Management should provide the required resources to the IAU to operate effectively.
2.8.2.10 The Ministry’s management must evaluate and thereafter approve the IAU’s Control Manual, prepared with the assistance from USAID.
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2.8.2.11 The IAU must be equipped to undertake on annual basis detailed risk assessment and fraud risk assessment on the Ministry.
Management’s Response 2.8.2.12 The management of MPW acknowledges the position of the Auditor General outlined in the recommendations and will work towards recruiting and building an effective Internal Audit team; provide unrestricted access to all records, assets and personnel at all levels of the Ministry; provide adequate resources for effective operations; approve the units Control Manual; and facilitate capacity in order that the unit undertakes on an annual basis detail risk assessment and fraud risk assessment at the Ministry.
Lack of Audit Committee
Observation 2.8.2.13 Regulation K.10, PFM Regulations, states that “a Head of government agency or government organization shall in consultation with the Internal Audit Governance Board establish and maintain an audit committee for the government agency or organization for which he/she is responsible”. Section K.11. Sub-section (1) also states “The Audit Committee of government agencies or organizations shall: Review internal controls, including the scope of internal audit, internal audit plans, internal audit findings, and recommend to the head of government agency the appropriate action to be taken;
Review with the Auditor General or other external auditors, as may be appropriate, the scope of their audit plan, the system of internal audit reports and assistance given by officers or staff to the auditors and any findings and action to be taken;
Be responsible for the resolution of any disagreements between Management, Internal Auditors and the Auditor General regarding internal controls and financial reporting;
Co-ordinate all audits of the government agency or organization”.
2.8.2.14 Though the MPW has a head that is responsible to establish and maintain the Audit Committee of the Ministry in consultation with the Internal Audit Governance Board, an evaluation of the MPW's administration disclosed that the Ministry had not established an Audit Committee as required by provisions of the PFM Regulations.
Risk 2.8.2.15 There is the risk that Internal Audit Reports would not be implemented because of the non-existence of the Audit Committee.
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2.8.2.16 Weaknesses identified in the MPW's internal control may not be addressed on a timely basis, which may result in fraud or mismanagement of the Ministry's resources.
2.8.2.17 The MPW Management could be discretional in implementing Internal Audit findings because of conflict of interest.
Recommendation 2.8.2.18 The MPW Management must establish an Audit Committee as required under Regulation K.10, PFM Regulations.
2.8.2.19 The findings and recommendations included in the internal and external Audit reports must be reviewed immediately and actions taken to prevent any loss of resources.
Management’s Response 2.8.2.20 The management of MPW accepts the position of the Auditor General to strengthen the role of the Audit Committee for ensuring the full implementation of both external and internal audit recommendations.
Absence of Risk Assessment
Observation 2.8.2.21 Regulation A.15(1), Public Financial Management Regulations of 2009, stipulates that “the head of government agency must exercise all reasonable care to prevent and detect unauthorized, irregular, fruitless and wasteful expenditure, and must for this purpose implement clearly defined business processes, identify risk associated with these processes and institute effective internal control to mitigate these risks”.
2.8.2.22 Additionally, the Internal Control Integrated Framework, published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), requires the MPW Management to establish a risk Assessment policy which will set the basis for conducting risk assessment within the Ministry and also determining the risk that may impact negatively the achievement of the entity’s objectives, such as, technological, economic, administrative, security and how each risk should be managed. Risks assessment allows an entity to consider the extent to which potential events can impact the achievement of its objectives.
2.8.2.23 Risk assessment further provides assurance that key business processes and appropriate control activities are in place. It also provides a roadmap to guide management in developing standard policies and procedures. It also assists management to identify control gaps and redundancies so that action plans can be formulated to plug control gaps, strengthen existing controls, or remove redundancies, where applicable. Risk assessment also provides detailed documentation on the control activities in place, including narrative process, flowcharts and risk grids.
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2.8.2.24 For the periods under review, we observed that the MPW’s Internal Audit Unit did not conduct any risk assessment on the Ministry, in order to understand the risks, management faces in achieving its objectives.
Risk 2.8.2.25 The risk of material misstatement as a result of fraud could be high in the MPW's financial statements, due to inherent and control weakness in financial reporting.
2.8.2.26 The absence of a documented risk assessment by the Ministry indicates that MPW's Management would be unable to identify and analyze risks underpinning the achievement of its objectives, including risks relating to the changing regulatory and operating environment, as a basis for determining how such risks should be mitigated and managed.
2.8.2.27 As a result of the absence of a risk management policy at the MPW, the goals of the Ministry may not be achievable.
Recommendation 2.8.2.28 MPW Management must establish a risk management policy and perform risk assessment procedures annually, in order to identify and manage risk that would negatively impact the Ministry's ability to achieve its objectives.
2.8.2.29 MPW Management should empower its Internal Audit Department or acquire the services of a consultant to conduct risk assessment of its processes, procedures and operations.
2.8.2.30 All levels of MPW Management should be involved in the risk management policy and consider the events that may impact their areas of activity and feed them up to senior management level, where senior management will keep these assessments running through all levels, including business areas of the Ministry to build up the entity’s assessment of overall risk portfolio of the organization.
Management’s Response 2.8.2.31 The management of MPW will ensure the implementation of the recommendations contained in the position of the Auditor General to establish risk assessment policy.
Inadequacy of the ITC Control System
Observation 2.8.2.32 The MPW Information Technology and Communications (ITC) Department was established in 2004 with the mandate to ensure technical support to all employees, consultants, contractors and other users of internet facilities and telecommunications management of the Ministry. Its other functions include but not limited to the installation,
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repair and maintenance of computer related equipment and software and training for employees for the proper use of the computer and other communication equipment.
2.8.2.33 Our review of the Information Technology and Communications Department operations revealed the deviations noted below: The Ministry did not have an approved ITC policy in place to guard the use of internet, computers and other communication equipment.
The Ministry did not have an IT strategic plan and no IT Steering Committee had been established.
There were limited uses of internet services by employees, due to the low bandwidth provided by the Infrastructure implementation Unit (IIU), which was insufficient to serve the Ministry.
There was lack of training for most of the personnel to effectively and efficiently manage the IT system of the Ministry.
There was no evidence that the Ministry's management periodically reviewed the system’s security logs or user access reports.
Classification of the systems' information as to its sensitivity and authority for accessing them have not been undertaken and implemented by MPW management.
Backup files were often transported via emails without appropriate procedures in place to safeguard such transfers - i.e. no provision was made to ensure the confidentiality of any sensitive information sent through the email.
The period for which statutory information should be kept was not documented.
No adequate provisions were made for virus protection for individual PCs and laptops, including the use of adequate anti-virus software.
Risk 2.8.2.34 Lack of defined and documented Management’s approved policies and procedures for the Ministry’s information systems and data may lead to their misuse and exposure, to virus attacks.
2.8.2.35 Sensitive data may be altered by unauthorized users.
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2.8.2.36 Inappropriate supervision of critical IT processes may occur.
Recommendation 2.8.2.37 The MPW Management must institute and implement an approved IT policy, strategic plan and Steering Committee to provide guidance on its IT operations as well as to safeguard the use of internet, computers and other communication equipment.
2.8.2.38 The MPW Management should consider the provision of adequate bandwidth for the Ministry to serve its internet needs.
2.8.2.39 The MPW Management should provide IT training for its personnel to enable the Ministry derive optimum benefits from the use of its IT facilities and safeguard its security information.
2.8.2.40 The MPW Management should classify its IT information as to its sensitivity and set authorization levels for accessing the IT information. Periodic review of the system security logs or user access reports must be implemented.
2.8.2.41 The MPW Management should institute safeguards for the transfer of backup files via emails to avoid the risk of loss of confidentiality of sensitive information sent through the email.
2.8.2.42 The MPW Management should provide adequate anti-virus protection for its PCs and laptops.
Management’s Response 2.8.2.43 The management of MPW will ensure the implementation of the auditors’ recommendations for an ICT policy, and train the ICT personnel to enhance their capacity for effectiveness and efficiencies.
2.8.3 Financial Matters
Budget Performance Analyses: Unspent US$17,078,817.87 for Three Financial Years Budget as per Performance Report
Observation 2.8.3.1 The MPW's original and adjusted budgetary appropriations for the three financial years ended 2009/10, 2010/11 and 2011/2012 totaled US$108,557,674.00 and US$102,673,670.04 respectively. A review of the expenditure performance reports of the Ministry indicated that a total amount of US$85,594,852.17 was expended during the periods under review. This indicates an under-spending of US$17,078,817.87 during the financial years over the respective National Budgets. See Table B.
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Table B. Budget Analysis. Unspent US$17,078,817.87 Original Actual Adjusted Over and (under) YEAR Appropriation Expenditure Appropriation US$ Performance US$ US$ MOF US$ 2009/2010 39,900,000.00 30,854,604.00 20,819,065.62 -10,035,538.38 2010/2011 32,282,456.00 33,527,547.00 29,805,179.97 -3,722,367.03 2011/2012 36,375,218.00 38,291,519.04 34,970,606.58 -3,320,912.46 TOTAL 108,557,674.00 102,673,670.04 85,594,852.17 -17,078,817.87
2.8.3.2 We noted that the under-performance during the financial years was due to budget transfer from one program to another and unpaid allotments resulting in under- performance in 2009/10, 2010/11 and 2011/12 totaling US$10,035,538.38, US$3,722,367.03 and US$3,320,912.46 respectively. See Table B Above.
Fees Processing on behalf of the Ministry of Finance 2.8.3.3 It was observed that the MPW processed tax payments during the periods under review in an amount of US$184,206.92 on behalf of the Ministry of Finance for pre-qualification and Construction Permit respectively as shown in the Table C below:
Table C. Taxes Collected on behalf of MOF Tax Type 2009/10 2010/11 2011/12 Grand Total US$ US$ US$ US$
Pre- Qualification 35,384.00 29,517.00 - 64,901.00 Construction Permit 44,043,05 54,652.47 64,653.45 119,305.92 TOTAL 79,427.05 84,169.47 64,653.45 184,206.92
2.8.3.4 It was noted from the report provided by MPW for the periods under review that US$184,206.92 was processed including US$64,901.00 for pre-qualification and US$119,305.92 for construction permit respectively. There was no reason provided to the auditors as to why there were no pre-qualification processed in 2011/2012 fiscal year.
2.8.3.5 As may be noted from the above tables, budget performance could have been enhanced if the Ministry of Finance had provided the balance allotment in an amount totaling US$17,078,817.87, to implement the objectives for the periods under review.
Risk 2.8.3.6 Lack of adequate information and performance mechanisms will lead to loss in revenue and failure to collect revenue due to the Government.
2.8.3.7 There is also the possibility of non-performance of works according to the Agreement which could lead to project being abandoned.
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Recommendation 2.8.3.8 The MPW Management must pursue proactive measures to ensure that funds approved by the National Legislature for the Ministry are allotted and disbursed to fund the Ministry's programs.
2.8.3.9 The MPW Management should provide reasons why pre-qualification permit were not collected during 2011/12 fiscal.
Management’s Response 2.8.3.10 Regarding the collection of fees for pre-qualification permit, the Administration of the Ministry of Public Works suspended the collection of fees in FY2011/2012 in order to institute the necessary controls and procedure for accountability in line with the PFM Act of 2009.
2.8.3.11 Regarding the under-spending of US$ 17,078,817.87 during the three fiscal periods under audit, please find below the factors that led to under-spending in the appropriations: The under-spending in the fiscal periods was largely due to unavailability of funds. The Ministry of Finance had a shortfall during these periods thus necessitating a decline in the revenue stream for all Line Ministries and Agencies including the Ministry of Public Works.
Most importantly, experience has shown that road works cannot be completed in one financial year; in addition, payments for works contracts are based on completion. So, the Ministry could not pay some contractors who had not performed in line with the terms and conditions of their contracts.
Auditor General’s Position 2.8.3.12 The management did not provide any communication for the suspension of fees for pre- qualification in 2011/12 in its response. The MPW must substantiate its assertion by making available to the audit team, communication from the Finance Ministry indicating a reduction of the MPW’s budget due to budget shortfall during the financial years under audit. Anomalies noted with MPW’s Uncommitted Balances
Observation 2.8.3.13 PFM Regulation B-26 (1, 2 and 3) states that in accordance with section 27 of the PFM Act 2009, at the close of the financial year, funds released to a government agency which have not been spent shall be the balance of appropriation and the head of government agency shall submit a statement of undischarged commitments, within 15 working days after the end of the financial year to the Minister.
2.8.3.14 That any unpaid balances on commitment will also lapse at the end of the year, unless goods and services have already been delivered, in which case, settlement must be made
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within 90 days of the end of the financial year. Further that a head of government agency shall furnish the Minister with a schedule of undischarged commitments which may be properly carried forward together with unexpended balances of the previous year’s appropriation that are available to finance their discharge.
2.8.3.15 During the review of available bank statements and other financial documents of the Ministry of Public Works for the periods under audit, the ministry received appropriations from the government of Liberia under its various programs to implement the road construction, and other projects to achieve its objectives. The total bank balances for the three financial years amounted to US$3,992,098.35 on account number 0220630003300 and L$8,093,275.15 on account number 0120630003300 at the Central Bank of Liberia. It was observed that the total outstanding check on the United State dollar account amounted to US$234,400.25 and in Liberia the dollar account amounted to L$2,632,752.04.
2.8.3.16 The Ministry made total commitment with supporting document amounting to US 2,956,861.14 and L$00.00. Further, the amount of US$800,836.96 and L$5,460,523.11 uncommitted balances could not be supported by documents at the close of the financial years. The uncommitted balances for the financial years were not transferred into Government Consolidated Funds Account at the end of each fiscal period, in accordance with the PFM regulations mentioned above, but remained in the operational bank accounts maintained by the ministry at the Central Bank of Liberia.
2.8.3.17 Those uncommitted balances at each year end were expanded in the preceding year without it being appropriated by the National Legislature as required by Law. The Ministry of Public Works also failed to provide justification and documentary evidence as to why it did not transfer the uncommitted as required by law. See Table D below
TABLE D: Uncommitted Balances Balance Closing Bank Outstanding CKS Date Commitment US$ Uncommitted balances US$ US$ US$ July 1, 2010 2,488,378.35 60,898.20 2,419,504.61 7,975.54 July 1, 2011 755,056.78 17,182.95 448,840.43 289,033.40 July 1, 2012 748,663.22 156,319.10 88,516.10 503,828.02 Total 3,992,098.35 234,400.25 2,956,861.14 800,836.96
Closing Bank Outstanding Balance Date Commitment LRD balances LRD CKS LRD Uncommitted LRD July 1, 2010 1,613,518.78 192,655.00 0 1,420,863.78 July 1, 2011 1,807,498.63 1,302,778.60 0 504,720.03 July 1, 2012 4,672,257.74 1,137,318.44 0 3,534,939.30 Total 8,093,275.15 2,632,752.04 0 5,460,523.11
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Risk 2.8.3.18 The balance carried forward by the Ministry of Finance in each preceding year could be understated or overstated during these periods.
2.8.3.19 The Ministry could be spending public money without appropriation by the National Legislature as required by law.
Recommendation 2.8.3.20 The Ministry of Finance should ensure that all uncommitted balances at year end should be transferred to consolidated funds account to be made available for appropriation by the National Legislature.
2.8.3.21 The authorities of Ministry of Public Works should provide justification for using the uncommitted cash balances amounting to US$800,836.96 and L$5,460,523.11 during the three years period without adhering to the PFM regulations.
Management’s Response 2.8.3.22 The Ministry takes note of the recommendation that all uncommitted balances at year end be transferred to the consolidated funds account. There were delays in receiving documentation from some vendors and contractors to capture full size of our outstanding commitment for the fiscal periods, however the Ministry acknowledges the regulation and going forward will adhere to this requirement.
Abnormality noted with Petty Cash expenditure
Observation 2.8.3.23 Regulation Q.4 (1), PFM Regulations, states that “the procedures for applying, granting, disbursing and retiring of imprest shall be in accordance with the particular government agency’s accounting manual”.
2.8.3.24 Regulation Q.5(c), PFM Regulations, requires that proper receipts are received for all payments out of the imprest. Regulation Q.5 (d), PFM Regulations further requires that “the full amount of the imprest can be accounted for at all times in cash, stamps, money at bank and completed payment vouchers”.
2.8.3.25 Additionally, Regulation Q.8(2), PFM Regulations, further states that “the application of imprest moneys for purposes other than those authorized, is a breach of financial discipline as defined in sub regulation 20 (1)”
2.8.3.26 The Financial Manual of the Ministry of Public Works, Section 8(11), equally states that “prior to the disbursement of any fund, a petty cash payment voucher should be prepared by the fund custodian and approved by the Chief Accountant after coding in accordance with the chart of accounts. Section 8(12) of the same manual also states among other
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things that there should be no ambiguous description such as “assorted goods” or “assorted items”.
2.8.3.27 During the period under review, the MPW disbursed petty cash amounting to US$78,185.00 and L$3,484,141.00 to various Bureaus and Departments at the Ministry. The total number of vouchers paid amounted to 153 in Liberian dollar and 61 vouchers in United States dollar. Of the total amount paid, a review of sample of 26 vouchers paid in United States dollar and 55 vouchers in Liberian dollar totaling U$58,531.00 and L$1,851,732.00 respectively disclosed several violations which include the failure by the Chief Accountants, Samuel D. Kollie and Bonar Kekula to approve petty cash voucher after the fund’s custodian had prepared the vouchers.
2.8.3.28 It was observed that replenishment reports made by sub-custodians lacked cash receipts to support the payment from the petty cash which amounted to U$12,286.35 and L$225,155.00. See Annex IV and Annex V. The ministry also paid for items valued at US$196.56 and L$42,130.00 which bore ambiguous receipts with description such as assorted goods or assorted items on the receipts in violation of the Ministry's own policy on petty cash. Receipts bearing such descriptions as assorted goods leave doubts in the minds of auditors as to what kind and quantity of goods were purchased. See Annex VI
2.8.3.29 The purpose of Petty cash is a sum of cash advanced to a public officer intended to effect payments which are inconvenient to make from Public Funds, using other normal payment procedures. Contrary to this purpose, the Legal Consultant and chief of office staff in the Office of the Minister, Cllr Alvina Norman paid an amount of US$300.00 as short term loans to four staff of the Ministry. Each of the four staff received the following amount; Amara Donso US$50.00, Theophilus Sagbeh US$50.00, Cynthia W. Nimely US$100.00 and Aaron S. Subah US$100.00 as short-term loans. There was no further information as to the repayment of the loan amount given to the four staff into the Ministry’s account. The action on the part of a petty cash custodian defeats the purpose of providing petty cash to public officers as enshrined in the PFM law.
2.8.3.30 A further examination of petty cash expenditure documents made available to us disclosed that payments in an amount of US$7,981.00 were made without the necessary replenishment reports attached to the vouchers. See Annex VII
Risk 2.8.3.31 Petty cash may be diverted to personal use due to the failure to follow the Ministry’s policy.
2.8.3.32 The use of petty cash by custodian may lack proper accountability.
2.8.3.33 The intended purpose for the use of petty cash may not be achieved;
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2.8.3.34 Records on petty cash may not be properly documented.
2.8.3.35 Petty cash would be used for personal activities other than the intended purpose.
Recommendation 2.8.3.36 The MPW Management should strictly adhere to the above provisions in the PFM Regulations and the Financial Controls Manual of the Ministry.
2.8.3.37 The MPW Management should ensure that the staff that received the loan from the petty cash in the Minister office in the amount of US$300.00 should be made to pay back the loan on time to be stipulated by MPW management.
2.8.3.38 The petty cash custodians referenced in this report who paid Petty cash without receipt in an amount of US$12,286.35 should be made to account for same.
2.8.3.39 The custodian should provide supporting documents for payments made without replenishment report in the amount of US$7,981.00.
2.8.3.40 Relevant source documents such as receipts should be attached to previous expenditures vouchers before petty cash is disbursed or replenished in any department;
2.8.3.41 Petty cash should be used for its intended purpose in adherence to the PFM Regulations and MPW’s Financial Controls Manual, thus avoiding its use for loan purposes.
2.8.3.42 Personnel of the MPW should avoid the acceptance of receipts bearing ambiguous descriptions such as assorted goods or assorted items because this violates provisions of the Ministry’s manual.
Management’s Response 2.8.3.43 MPW acknowledge the lack of some cash receipts on the replenishment report. These receipts were mistakenly attached to vouchers for replenishment to the MOF without maintaining photocopies for our records. For those petty cash without expenditure reports please see attached those missing reports.
Inconsistency in Financial Statements Preparation and Reporting
Observation 2.8.3.44 Section 36(1) of the Public Financial Management Act states that it is a "general responsibility under this Act for all government officials handling public financial transactions to ensure that financial information is reported in a timely, comprehensive, and accurate manner, in the manner prescribed in this Act, under its regulations, and in instruction issued by the minister".
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2.8.3.45 Additionally, Regulation I.11, PFM Regulations, 2009, stipulates that "there shall be prepared by the head of government agency or an administrator or head of any Government agency and transmitted to the Minister and the Comptroller-General in respect of the year, accounts covering all Public Funds under his control. The accounts shall be submitted within a period of two months after the end of each financial year, or such other period as the Legislature may by resolution appoint, and shall include statements and documents to be specified in the International Public Sector Accounting Standards (IPSASs) as adopted by the Government of Liberia".
2.8.3.46 The Government of Liberia has since 2009 adopted IPSAS Cash Basis of Accounting, which stipulates that "an entity should prepare and present general purpose financial statements which include the following components: A statement of cash receipts and payments which: a. Recognizes all cash receipts, cash payments and cash balances controlled by the entity; and
b. Separately identifies payments made by third parties on behalf of the entity in accordance with paragraph 1.3.24 of this Standard;
Accounting policies and explanatory notes; and
When the entity makes publicly available it’s approved budget, a comparison of budget and actual amounts either as a separate additional financial statement or as a budget column in the statement of cash receipts and payments in accordance with paragraph 1.9.8 of this Standard.
2.8.3.47 During the review of the financial statements presented for 2009/10 and 2010/11, it was noted that in conformity with the statutory mandate in the preparation of the cash receipts and cash payments statements, the Ministry implemented it statutory reporting mandate in the 2009/2010 and 2010/11 financial years. For the 2011/12 financial year, the Ministry did not prepare the financial statements of cash receipts and payments; instead it prepared budget performance report for the fiscal year. The failure of the ministry to prepare the financial statements is in violations of the public financial management act of 2009.
2.8.3.48 The ministry also failed to maintain books of account such as General Ledger and trial balance for accounting for the financial transactions for the periods under review.
Risk 2.8.3.49 The inconsistency in presentation of MPW's financial reporting could lead to failure by the Government to implement the Cash basis of accounting.
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2.8.3.50 The exception noted in the Ministry's financial reporting for 2011/12 constitutes a violation of the Regulation I.11, PFM Regulations, 2009, and could impact GOL’s compilation of Consolidated Funds financial statements for the 2011/12.
Recommendation 2.8.3.51 MPW Management must provide substantive justification for its failure to compile its financial reporting in accordance with Regulation I.11, PFM Regulations, 2009.
2.8.3.52 The management of MPW should be made to prepare the 2011/2012 financial statements in accordance with Regulation I.11, PFM Regulations, 2009.
2.8.3.53 MPW Management must henceforth enforce the dictates of Regulation I.11, PFM Regulations, 2009 in its financial reporting.
2.8.3.54 MPW Management must closely monitor the operations of the Ministry's Finance Department, to ensure that the Ministry maintains all books of account, including General Ledger and trial balance, in order to comply with the provisions in the Financial Controls Manual.
Management Response 2.8.3.55 Inconsistence in financial statement and report is a result of migration from IPSAS Cash Reporting Basic to modified Accrual Basic and to IFMIS generated Reporting System.
Auditor General’s Position 2.8.3.56 Migration from IPSAS Cash Reporting Basic to modified Accrual Basic and to IFMIS generated Reporting System is not sufficient reason for not preparing financial statements as required by PFM Regulations. We therefore maintain our recommendations
Unexplained Differences between budget performance reports and payment vouchers for telephone, telex, fax and courier services.
Observation 2.8.3.57 Confirmation of expenditure incurred by the MPW disclosed a variance between the figures reported from the payment vouchers and the Ministry of Public Works’ budget performance reports for telephone, telex, fax and courier services covering the three periods under audit 2009/10, 2010/11 & 2011/12.
2.8.3.58 The Ministry reported in its budget performance reports for the three years period under audit, an amount of US$155,099.90 as expended on telephone, fax and courier services. Our examination of the supporting payment vouchers made available for review indicated that instead, an amount of US$150,809.20 was disbursed, thereby creating an unexplained variance of US$4,290.70 See table E below
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Table E. Budget Performance Payment Vouchers Unexplained Difference Fiscal Period Report US$ US$ US$ 2009/2010 98,756.09 98,756.09 00.00 2010/2011 33,319.60 33,319.60 00.00 2011/2012 23,024.21 18,733.51 4,290.70 TOTAL 155,099.90 150,809.20 4,290.70
Risk 2.8.3.59 There is a risk that expenditures reported to have been incurred by the Ministry may be inaccurate either due to inappropriate accounting procedures, poor record keeping, error and or misstatement. This may impact financial reporting by the Ministry as a whole.
Recommendation 2.8.3.60 In order to ensure accountability and accurate financial reporting, the MPW’s Comptroller must ensure that all weekly entries made into books of prime entry are reconciled with their related source documents, weekly summarized figures extracted from the books of prime entries to the ledgers and weekly trial Balance extracted.
2.8.3.61 Any differences observed at the level of the Trial Balance should be documented, investigated and a report issued thereon. The report must be certified and approved by the Chief Accountant and Comptroller respectively.
2.8.3.62 The MPW Management must investigate the variances of US$4,290.70 observed and indicated in the table above and a report issued thereon. The report must be certified and approved by the Chief Accountant and Comptroller respectively and presented to the Minister of Public works and Auditor General, for their attention and necessary action.
Management’s Response 2.8.3.63 I am pleased to inform your honorable office that Liberia Telecommunication Corporation was not the only vendor paid from this line item as indicated in the Draft management observation, Ministry of post and Telecommunication and other vendors were also paid from this line. Kindly find in the attached documents copies of payment vouchers to substantiate the various payments as indicated in the budget performances for the three(3) fiscal periods under reviewed
Auditor General's Position 2.8.3.64 MPW Management needs to investigate the variance of US$4,290.70 that could not be certified in the documents presented for financial year 2011/2012. The payment in an amount of US$4,290.70 by the Ministry of Public Works Finance Office to the Liberia Telecommunication Corporation could not be confirmed due to the failure by the finance office to indicate the serial number of the voucher. The MPW’s finance office did not also
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provide the full general ledger from which the payment in question could be traced. We therefore maintain our recommendations.
2.8.4 Administrative Matters
Inadequate documentation in Employees Personnel Files
Observation 2.8.4.1 Section 1.2.5 of the 1983 Standing Orders of the Civil Service of the Republic of Liberia states that; civil servants’ information to be included in the personnel files will include the position occupied and salary drawn. Further, the Personnel Action Notice (PAN) form shall be maintained as well as employment record forms, duty statements, letters of appointment, dismissal or resignation, medical reports, copies of academic qualification and curriculum vitae.
2.8.4.2 Our examination of the thirteen Personnel files at the Ministry revealed that relevant details such as letters of appointment, PAN forms, curriculum vitae, medical reports, academic qualifications, salary drawn and details of progression by way of promotions were not on the files.
2.8.4.3 Due to the lack of vital personnel information, it was impossible to ascertain the full status of some employees, date of employment and the capacity of staff to discharge their respective job descriptions.
2.8.4.4 Further examination of the Ministry's payroll disclosed that nineteen employees whose names were on the payroll were not on the Ministry's personnel listing. Ref. Annex VIII. It was also observed that eleven employees were found with two payroll numbers and thirteen employees’ files were not updated with relevant documents. Ref. Annexes IX and X
Risk 2.8.4.5 The failure by the Human Resource Department to maintain relevant documentation in personnel files could be due to the lack of proper control over the Ministry's archive.
2.8.4.6 The manner in which the personnel records were kept could make possible the inclusion of ghost workers on the payroll.
Recommendation 2.8.4.7 MPW Management should update the personnel files and ensure that there is due compliance with the Section 1.2.5 of the 1983 Standing Orders of the Civil Service of the Republic of Liberia. This will include monthly updates of personnel listing and comparison of it with MOF’s processed payroll and CSA’s issued Personnel Action Notices (PAN).
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2.8.4.8 The Head of Human Resource and Training Department must provide justification for the absence of vital information in some employees' personnel files as indicated in the Annexes above.
2.8.4.9 MPW's Finance Department and the Head, of Human Resource and Training Department, must jointly investigate the presence of the 19 personnel on the Ministry's Payroll without being on its Personnel Listing, determining the personnel due placement (i.e. grade and salary wise) and report the outcomes to the Minister of Public Works and the Auditor General.
Management’s Response 2.8.4.10 The management of MPW accepts the recommendations to update the personnel files from time to time, and update on a monthly basis the personnel listing with the payroll. The process was on-going when the GAC commenced the audit. This is why only 13 out of more than 500 employees were not properly documented.
Irregularity noted with Award of Scholarship to Employees
Observation 2.8.4.11 Section 7.3(a) of the Ministry of Public Works Human Resource Policies & Procedures Handbook states that “Employee seeking local scholarship shall first be currently enrolled at a university, submit request to the appropriate Assistant Minister through supervisor. The request shall be submitted to HR sub-committee for vetting; HR Sub-committee shall submit candidate to DMA for approval.” (b) Applicant must be in the employ of MPW for a period of 2 years and must obtain and maintain a minimum of 3.00 GPA and shall be required to sign an MOU with the Ministry. Section 7.4(b) of the same handbook indicates that all other conditions as stated above in 7.3 shall apply to international scholarships also.
2.8.4.12 Review of the Local and International scholarships awarded two staff, Fregina Bettie and Jesufu M. Keita of the Ministry by GIMPA and accompanying financial records available disclosed that the Ministry expended US$ 8,000.00 as contributions in the awarding of the foreign scholarship on January 11, 2012. Both employees received US$ 4,000.00 each to study at the Ghana Institute of Management and Public Administration (GIMPA) in Ghana.
2.8.4.13 Despite the above policy and procedures established by the Ministry, the Ministry, through the Deputy Minister for Administration, Johnson W. Gwaikolo approved and paid Jesufu M. Keita, who had not been in the employ of the ministry for two years, in contravention of the provisions of the Human Resource Policies & Procedures policy handbook on scholarships.
2.8.4.14 A further review of relevant documentation indicated a lack of evidence for procedures followed in paying some cost of the foreign scholarships; there was no letter of request
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for scholarships, no Human Resource sub-committee vetting report for candidates selected and no Memorandum of Understanding signed between the scholarships beneficiaries and the Ministry.
2.8.4.15 We also observed that the Ministry failed to sign a memorandum of understanding with the two employees which would have bound both parties, thus bringing back to the Ministry, benefits in service and knowledge for the resources expended on the two employees.
Risk 2.8.4.16 The omissions observed could cause the Ministry to lose large sums of money in training employees without long-term benefits accruing to the Ministry and Government of Liberia
2.8.4.17 The MPW Management's non-compliance with the Human Resource Policy constitutes a significant violation that could lead to friends and family members benefiting, thus leaving out legitimate long serving employees of the Ministry.
Recommendation 2.8.4.18 The MPW Management must provide substantive justification for paying some cost for foreign scholarships in violation of the Ministry's human resource polices on scholarship.
2.8.4.19 The Administration must enter into a memorandum of understanding with the two employees for some long-term service benefits to the Ministry and the Government of Liberia, since the Ministry has expended resources on their training.
2.8.4.20 The MPW management must adhere to the procedures as spelt out in Section 7.3(a) and (b) of the Human resource Policy of MPW in awarding scholarships.
2.8.4.21 The Head, Human Resources Section of the MPW must provide the sub- committee report on the process of approval for the two staff.
Management’s Response 2.8.4.22 The management of MPW accepts the recommendations of the auditors to formulate a scholarship policy in addition to the Human Resource and Procedure Manual. The Ministry takes note and will ensure the signing of memorandum with the beneficiaries of the scholarship with the view to serve the Ministry in keeping the policy.
Non-Compliance with the Travel Ordinances
Observation 2.8.4.23 Section 5 of the Executive Ordinance of 2009 stipulates that in addition to per diem allowances, all heads of delegations other than Presidential and Vice Presidential travel shall be given a lump sum amount of US$250.00 to provide for telephone, telegraph and
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official entertainment. All such expenses must be supported by proper receipts. Unsupported expenses shall be disallowed and reimbursed to the Ministry.
2.8.4.24 Executive Ordinance No 9 section 4 also states that all requests for travel advance shall be accompanied by voucher, travel request form, three quotations from different travel agents, budget allotment from the Budget Bureau, a copy of approval of the office of the president or by the head of relevant institution and the original letter of invitation. Request for advance will be considered only if the Bureau of General Accounting verifies that appropriation and allotment are available.
2.8.4.25 However, contrary to the dictates of the above regulation, It was observed that in some instances of payment of incidental allowances to staff and officials of the Ministry relating to foreign travels during the period under review, Management did not comply with this provision and payments were made to some staff and officials who were provided incidental allowances. Upon return from their trips, the officials did not provide retirement reports as to how these funds were used. As a result, incidental allowances amounting to US$1,500 from foreign travels given the available records at the Ministry remained unaccounted for. See Table F below.
TABLE. F. NON RETIREMENT OF INCIDENTIAL ADVANCES AND LETTER OF INVITA TION Incidental Payee Voucher # Destination Not Retired Comment US$ Samuel Kofi Woods II MPW-409- Abidjan, Ivory 000047 Coast 250.00 letter of invitation seen Samuel Kofi Woods II MPW-409- Accra, Ghana 000242 250.00 letter of invitation seen Victor Smith MPW-409- Kuwait 000197 250.00 letter of invitation seen Christian G. Herbert MPW-409- Kuwait 000209 250.00 letter of invitation seen Abraham B. Samukai MPW-409- USA 000196 250.00 letter of invitation seen Abraham B. Samukai MPW-409- USA 000141 250.00 letter of invitation seen Total US$1,500.00
Risk 2.8.4.26 MPW Management’s non-compliance with the existing regulatory framework on payment for foreign travels could cost the Ministry substantial loss of funds.
2.8.4.27 The absence of supporting documents to retire travel advances received by officials and employees of the Ministry could imply that the trips may have not been undertaken.
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2.8.4.28 The failure by the Management to adhere to control procedures and provisions contained in the extant Financial Laws of Liberia could undermine the financial management of the Ministry and have negative impact on the efficient implementation of other budgeted activities.
Recommendation 2.8.4.29 MPW Management must strictly comply with the Guidelines and Procedures on Per Diem Allowances and incidentals specified in the extant Travel Executive Ordinances.
2.8.4.30 MPW Comptroller must provide justification as to why the officials mentioned above did not retire the incidentals upon their return, as required by Travel Executive Ordinances.
2.8.4.31 MPW officials should retire the incidental allowance amounting to US$1,500 given to them during their official trips.
Management’s Response 2.8.4.32 These receipts were submitted to the Financial Department after the travels, however due to receipt changes in the Financial Management division and the relocation of documents Management is unable to provide these receipts at this time. The Ministry however takes note to comply with the travel ordinance with respect to providing receipts for incidental allowances.
2.8.4.33 The ministry of public works has consistently applied the travel ordinance for all official travels, except emergency travels which the Ministry of Finance cannot fund immediately. In such situation, the Ministry usually underwrites the cost of travel and later request for reimbursement from the Ministry of Finance, where supporting documents are forwarded. Please find attached the invitation letter and approval for the travel of Hon. Samuel Kofi Woods.
Auditor General's Position 2.8.4.34 The retirement of the travel advance by the officials was not addressed as stipulated in Section 5 of the Executive Ordinance, which states that in addition to per diem allowances, all heads of delegations other than Presidential and Vice Presidential travel shall be given a lump sum amount of US$250.00 to provide for telephone, telegraph and official entertainment. All such expenses must be supported by proper receipts. Unsupported expenses shall be disallowed and reimbursed to the Ministry. The management failed to prove that the amount of US$1,500 disbursed to the above officials was retired accordingly as stated in the travel ordinance. As such, we maintain our recommendations on the retirement of the travel advance.
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Anomalies noted with assets management
Observations 2.8.4.35 Regulation C.8 (4b), PFM Regulations states that “a head of government agency shall preserve in good order and secure the economical use of all equipment and inventories used by the Agency”; Regulation C.8 (4e), PFM Regulations, also states that “in collaboration with the General Services Agency, the head of agency shall compile and maintain assets register of the Government’s Agency as determined by the Comptroller- General”.
2.8.4.36 During the periods under review, it was observed that the MPW had not prepared and maintained an asset register for financial years 2010/11 and 2011/12 and that the one prepared for the financial year 2009/10 did not include vital information such as names of venders and acquisition cost of the assets.
2.8.4.37 In addition, Regulation V.1 (2a), PFM Regulations, stipulates that the Head of Government Agency must take full responsibility of assets assigned to him by the GSA and ensure that proper control systems exist for assets and that preventive mechanisms are in place to prevent theft, losses, wastage and misuse. The Physical verification of the Ministry of Public Works assets also revealed that the General Services Agency had not coded most of the assets procured and maintained by the MPW, including, bikes, Office Furniture, Computers and other moving equipment. See Annex XI
Risk 2.8.4.38 In the light of the situation observed at MPW, assets purchased with public Funds could be diverted to personal use by authorities at the Ministry;
2.8.4.39 Non-maintenance of Fixed assets Register by the MPW carries the risk that MPW's assets could be misappropriated without being noticed.;
2.8.4.40 In the absence of coding, MPW's assets would not be distinguished from private property, thus paving the way for the assets misappropriation.
Recommendation 2.8.4.41 MPW Management must ensure that the Ministry’s Logistic Section prepares and maintains Asset Register in which all MPW's assets and related information are included for the purpose of accountability.
2.8.4.42 MPW Management must ensure that all assets of the Ministry, both those bought by the Ministry as well as those acquired through donation, are coded by the General Services Agency to avoid their abuse.
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2.8.4.43 MPW Management must adhere to the assets management policy governing the usage, recording, accounting and disposal of all Government assets, as provided for under Regulation C.8 (4b, e), PFM Regulations.
2.8.4.44 The MPW Management and that of GSA must periodically (i.e. annually) reconcile physical assets holdings and title documentation, to ensure accountability for all GOL’s property in the possession of the MPW.
Management’s Response 2.8.4.45 Management accepts the recommendation that assets are coded and periodically reconciled with GSA.
Partial Insurance of MPW’s Assets
Observations 2.8.4.46 Best practice requires that in order to protect assets against accidents and loss through theft, organizations are required to insure their assets against all potential risks attached to their ownership and utilization.
2.8.4.47 Contrary to the above best practice, a review of the Ministry’s records on insurance of its assets such as motor vehicles, earth moving equipment and other classes of fixed assets disclosed that the Ministry had in place an insurance policy that disregarded some of the Ministry's assets during the period under review. There was no evidence that the Ministry did insure seventeen vehicles and ten Motor Bikes from the Ministry’s list of assets with the Atlantic Life and General insurance Company. See Annex XII
Risk 2.8.4.48 The lack of insurance coverage could lead to loss of assets without any recovery in the event of accidents and other mishaps and could impose additional burden on the Ministry,
Recommendation 2.8.4.49 The MPW Management must provide substantive justification as to why all the ministry’s assets were not insured during the periods under audit.
2.8.4.50 MPW Management should ensure that all the Ministry’s assets are insured in order to safeguard the equipment and to also avoid cost emanating from assets replacement.
Management’s Response 2.8.4.51 The Ministry has made frantic effort to insure all assets of the Ministry. In the annual budgetary submission for approval, the ministry submits an amount with the view to insure all assets. Unfortunately, owing to budgetary constraints, coupled with budgetary shortfall at time, the amount requested for insurance is not usually approved in total; so
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the ministry selects to insure assets that are high risk equivalent to the approved appropriation.
2.8.4.52 Please be informed that some vehicles were already marked for disposal therefore, they could not be insured but for the motor cycles, the insurance process was ongoing at the time the audit began. However, all motor cycles will be insured in fiscal 2013/2014
Payment Vouchers without Quotations
Observation 2.8.4.53 Section 53 (1) of the PPC Act states ‘that the request for quotations method may be used for the procurement of goods, works and services in situations where the procurement is for readily available commercially standard goods, not specially manufactured to the particular specifications of the Procuring Entity and the estimated contract price does not exceed the applicable Threshold;’
2.8.4.54 Also, PPC Act Section 54(1, 4) states that the Basic Procedures for Requests for Quotations: Quotations shall be requested in writing from as many bidders as practicable, but from at least three (3) bidders and a purchase order may only be placed with the bidder that provides the lowest quotation meeting the delivery and other requirements of the Procuring Entity as stated in the request for quotation.
2.8.4.55 During the review of payment vouchers for press and publication, it was observed that the Ministry expended a total amount of US$177,855.00 through 73 vouchers for press and publication. Our sample analysis for the accounts showed that the ministry paid several vouchers without three quotations as required by the public procurement law of Liberia. The omission amounted to US$49,825. See details in Annex XIII.
2.8.4.56 It was also observed that the Ministry did not have any set of approved policy as regards Press and Publication during the period under review.
Risk 2.8.4.57 The absence of quotations could suggest unfair business competition to satisfy few individuals.
2.8.4.58 The value for money concept could not be achieved in situations where procurement of goods and services were undertaken in the manner observed.
Recommendation 2.8.4.59 All payments relating to goods and services below the procurement thresholds should be accompanied by at least three quotations as required by the PPC Act. The Management must ensure strict adherence to the provisions of the PPC Act and its regulations.
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2.8.4.60 Management should provide justification with appropriate documentation as to why vouchers paid amounting to US$49,825, were not accompanied by three quotations.
2.8.4.61 The Ministry should prepare and approve a communication policy so that it can guard the process of press and publications at the Ministry.
Management’s Response 2.8.4.62 Regarding payment voucher without quotations, relate to newspapers and publications. Publications are almost always done in three to four newspapers at the same cost or price.
2.8.4.63 Where these newspapers are publishing at the same costs or prices, the need for soliciting quotations was rather immaterial with respect to the urgency of the publications. Also, the charges for all print media are based on regulations by the publishers’ Association that is consistent for all major papers.
Auditor General's Position 2.8.4.64 The argument by the management that "where these newspapers are publishing at the same costs or prices, the need for soliciting quotations was rather immaterial with respect to the urgency of the publications. Also, the charges for all print media are based on regulations by the publishers’ Association that is consistent for all major papers" cannot be materially sustain on the merit given that management’s assertion undermines the PPC Act as it relates to the procurement of goods and services.
2.8.4.65 The essence of the PPC Law requesting quotation is to select the lowest bid so as to maximize the resources of the Ministry. On this basis, the payment made on press and publication cannot be justified.
2.8.4.66 Also, there was no justification provided by management on the payments on office furniture and fixtures which were not accompanied by quotations. Therefore, we maintain our recommendations.
Fuel supplied MPW that could not be traced on the Fuel Receiving Log
Observation 2.8.4.67 Public Financial Management Regulation A.3(1-3), PFM Regulations, on Duty to Keep Proper Records and Books of Accounts states that; (1) Any public officer concerned with the conduct of financial matters of the Government of Liberia, or the receipt, custody and disbursement of public and trust moneys, or for the custody, care and use of government stores and inventories shall keep books of accounts and proper records of all transactions and shall produce the books of accounts and records of the transactions for inspection when called upon to do so by the Auditor General, the Comptroller General , the relevant internal auditor or any officers authorized by them, by the Minister.
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2.8.4.68 A public officer who fails to keep or produce any records under this regulation is in a breach of financial discipline as defined in Regulation A.20.
2.8.4.69 An officer responsible for keeping financial and accounting records in accordance with this regulation shall ensure that the necessary books and forms for the purpose are provided and the non-availability of the books and forms shall not relieve the officer of his responsibility.
2.8.4.70 Our analysis of 42 payment vouchers examined on fuel and lubricant showed that 13 vouchers paid during the period disclosed the following anomalies: 136,442 gallons of fuel in the amount totaling US$461,312.00 purchased could not be reconciled or traced to the fuel receiving log at the ministry due to the absence of the receiving logs. See Annex XIIII for detail of the transactions
Risk 2.8.4.71 Fuel purchased but not traced on the fuel receiving log is an indication of possible non reconciliation within the Ministry.
Recommendations 2.8.4.72 The MPW Management must provide substantive justification for the 136,442 gallons of fuel bought but which could not be traced on the fuel receiving log.
2.8.4.73 The Head, MPW’s Procurement Department, must ensure that all fuel received is recorded in the fuel receiving log before distribution to end users.
2.8.4.74 The Head, MPW Procurement Department, adopts a system of accountability in which all items procured are duly recorded when received and distributed.
Management’s Response 2.8.4.75 With regard to fuel log not made available for FY2009/2010, the logging of fuel had not been instituted in the Ministry. The logging of fuel system began in July 2010 when we took over as part of the measure for accountability and transparency. we used the delivery notes and distributions log to reconcile at the time.
Auditor General's Position 2.8.4.76 Recommendations were made in the last Auditor General’s report on MPW to put in place fuel receiving log to reconcile the inflow and outflow of fuel at the Ministry. Management should therefore ensure that logging of fuel is done on a regular basis to provide for reconciliation between the delivery notes and monthly distributions log.
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Irregular Payment of fuel supplied MPW
Observations 2.8.4.77 Pursuant to Section 22(3), Public Financial Management Act of 2009, Debt service payments shall be adequately budgeted for in the National Budget and its subsequent Supplementary Budgets. The Minister shall ensure that debt service payments are among first claims on resources in the execution of the National Budget. Details pertaining to budget execution procedures regarding debt service payments will be further detailed in regulations under this Act. Also Section 32(2), PFM Act on Accumulated arrears to suppliers at the end of a financial year, which are not likely to be settled within the settlement period specified in Section 27, are considered debt and will be recorded as such, and their settlement included, and reported, in debt service.
2.8.4.78 Following a detailed substantive testing of 42 payment vouchers selected for review from a population of 90 external payment vouchers with a total value of US$2, 551,429.65 for fuel and lubricant, it was observed that payment voucher number MPW-409-000091 in favor of Ducor Petroleum for fuel and lubricants supplied with a value of US $307,684.00 as arrears were processed and paid by the Ministry of Finance through a budgetary transfer in FY 2010/2011, from a line item, roads and bridges instead of the amount being paid from General claims/Domestic Debts.
2.8.4.79 These arrears were a result of a contract the vendor entered into with the Ministry of Public Works in 2007 to supply the Ministry with fuel and gasoline. But the Ministry of Public works failed to meet up with its financial obligations as spelled out in the terms of the contract in 2007/2008 financial year.
2.8.4.80 Supporting documents attached to the voucher revealed that said claim was vetted in 2008 by the Internal Audit and Legal departments of the MPW.
2.8.4.81 According to management’s internal report reviewed, the claim was not reported to the Finance Ministry’s authorities for further vetting until in 2010, when the then Deputy Minister for Administration of Public Works, Johnson Gwaikolo, requested payment of the claim to the vender in his communication on October 12, 2012 to the then Deputy Minister of Finance for Debt Management.
2.8.4.82 The Deputy Minister of Finance for Expenditure and Debt Management, Arthur W.B. Fumbah granted the request and payment was made to the vendor on December 29, 2010. The Finance Ministry should have directed the vendor arrear payment to the claim department of MOF to vet the vendor’s claim and payment be made from the claim department instead of the current Ministry of Public Works’ line budgetary allocation which limits the Ministry’s efforts to achieve its mandate in the 2010/2011 budget year by paying arrear that was not budgeted in that year.
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2.8.4.83 During the 2011/2012 budget year the MPW did not pay two vendors, Liberia Equipment and RMA despite the processing of their vouchers.
Risk 2.8.4.84 The MPW may not be able to achieve its objective for a particular line item within the current year because the amount already allotted for may be reduced in order to satisfy the claim from the previous year.
2.8.4.85 That claims paid from the current budget instead of general claims could suggest collusion between some dishonest individuals or double payment by General Claim.
Recommendations 2.8.4.86 The Ministry of Finance should provide appropriate explanation with documentary evidence why payments were not made from general claims but rather from the Ministry of Public Works’ current budget.
2.8.4.87 That arrears arising from vendors in the previous years should be duly vetted and carried forward to Domestic Debts.
Management’s Response 2.8.4.88 The Ministry of Public Works accepts as facts surrounding the payement of US$307,684.00 to Ducor Petroleum from Financial Year 2010/2011 budget, although the contract was consummated in Financial Year 2007/2008.
2.8.4.89 However, the Ministry had relied on the Internal Audit Division and the Legal office as a means of showing some level of transparency and accountability in the transaction. Furthermore, the MPW sought approval from the Deputy Minister for Debt & Expenditure and the Deputy Minister for Budget before the payment was made. The MPW was under constant pressure from the vendor who had informed the Ministry that the entity was nearing bankruptcy if the payment was not made.
2.8.4.90 Nevertheless, the MPW has taken all necessary steps to ensure arrears from past financial year budget are directed to the Ministry of Finance for consideration under domestic debt.
2.8.4.91 Additionally, the Highly Indebted Poor Country (HIPC) process was a cash basis where no accruals were allowed.
Auditor General's Position 2.8.4.92 The MPW and Finance Ministry failed to follow the appropriate procedures in settling past arrears of Ducor Petroleum for fuel and lubricants supplied in 2007/2008. There were others arrears for some vendors, for instance, Liberia Equipment and RMA which were not paid but sent to MOF as observed during the audit periods. The MPW should have directed Ducor Petroleum debt to Domestic Debt as in the case of other vendors. The
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MPW and MOF violated the budget and payments processes by requesting MOF to pay Ducor Petroleum. The payment may have created a conflict of interest situation by singling out only one vendor for arrear payment in a current budget when it was not appropriated by the Legislature. We thus maintain our recommendation.
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3 ACKNOWLEDGEMENT
3.1 We acknowledge the cooperation and assistance provided to the GAC Audit Team by the Management and staff of the MPW during the period of the audit. The efforts and commitment of GAC staff in conducting this audit are also gratefully acknowledged.
Monrovia, August 2014
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4 ACCOUNTABILITY STATEMENT
4.1 Overall, both financial and administrative activities undertaken by the Ministry of Public Works Management during the periods under review were characterized by a number of financial irregularities and control deficiencies. The financial irregularities noted amounted to US$2,297,272.07 and L$222,155.00 and involved non-accountability for contracts, irregular payment for services. Details of these irregularities are provided in Annex I, in line with 53.7 of the Executive Law of 1972 and PFM 2009 Regulations.
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5 TABLE OF ANNEXES
ANNEX I. ACCOUNTABILITY SCHEDULE Report Ref. Position of Personnel Amount Amount # Issues Paragraph Culpable for Irregularity (USD) (LRD) # 1 Harris K. Peal, General Failed Water, Manager of General Sanitation and Fabrication &construction Hygiene Projects Business Corp Company, (WASH) Abib Zack, President of Zakimah Continental Holding Company, Joseph D. Barmoh, Executive Director of Youth Care Inc and Boimah A. Geebah, Director General of Aquifer Services Inc
Former Minister Samuel Kofi 2.8.1.9 Woods, former Deputy Minister of Rural Development Charles W. Carpenter, former Deputy Minister for Administration Johnson N. Gwaikolo, Deputy of Technical Services Jenkins J. Mends-cole, Asst Minister of rural development George Yarngo and former Comptroller Abraham B. Samukai 152.275.95 2 Crossroads Enterprise Inc. Non-Performance of General Manager, Joseph road Construction Jusu, Friendship International Contracts Chairman of board of Directors, Samuel B. Cheaye, Morweh Liberia Ltd Chief Operating Officer, Wilmot B. Yalortai, Genesis Liberia Inc. 2.8.1.41 General Manager, George F. Howard, Finda Architecture and Construction Company General Manager, Joseph L. Merchant, Nimely Equipment General Manager, Danielette Nimely, GAP International Liberia Director, Robert B. 2,122,929.12
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Report Ref. Position of Personnel Amount Amount # Issues Paragraph Culpable for Irregularity (USD) (LRD) # Curzon- Jones, General Fabrication and Construction Business Corperation Executive Director, James R. Potter, Jr. and SWAGS Engineering and Construction Company.
Former Minister Samuel Kofi Woods, former Deputy Minister of Rural Development Charles W. Carpenter, former Deputy Minister for Administration Johnson N. Gwaikolo, Deputy of Technical Services Jenkins J. Mends-cole, former Comptroller Abraham B. Samukai and former Director of Procurement Wion B. Kanteah Sr. 3 Petty Cash Custodians, Abnormality noted Josephine Nyantee, Momo with Petty Cash Kamara, Nancy Townsend, Ester Akoi, James K. Sundaye, Alexander V. Holmes, Brender M. Lee, Odell W. Dandy, 2.8.3.38-39 Joseph J. Gray, Jackson P. Sarwee, Julia B. Sesay and Asst. Minister for Planning Christain G. Herbert 20,267.00 222,155.00 4 Former Legal consultant and Petty cash given as COS Cllr Alvin Norman, petty loan to four cash custodian Cynthia W. employees with no 2.8.3.29 Nimely, Amara Donso, prove of repay Theophilus Sagbeh and Aaron Subah 300.00 4 Former Minister Samuel Kofi Non-Compliance with Woods, former Deputy Travel Ordinances Minister for Technical Service 2.8.4.31 Victor Smith , former Asst. Minister for Planning Christian G. Herbert and former 1,500.00
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Report Ref. Position of Personnel Amount Amount # Issues Paragraph Culpable for Irregularity (USD) (LRD) # Comptroller Abraham B. Samukai
TOTAL 2,297,272.07 222,155.00
Annex IA: STATUS OF IMPLEMENTATION OF PRIOR AUDIT RECOMMENDATIONS Prior Recommendation Status of Implementation of Management Response 2006/07 prior Audit recommendation Absence of Financial When we took over as Comptroller The Ministry has an Accounting Regulations we did not meet a system in place. Procedure Manual now in use. Financial Regulations should be We are trying to set up a system put in place for control and to include the following: management of public Responsibility of Accountants, for finances example; there are accountants responsible for the handling of Cash Books, maintenance of External and Internal Vouchers ledger, maintenance of Budget performance Ledgers (Budget Ledger), along with the preparation of Monthly Bank Reconciliation Statement of various Accounts, both Manual and Computerized. To further enhance our work, an Accounting Procedure Manual has been drafted by the Comptroller awaiting approval. A soft copy of the Manual will be submitted for your perusal.” Evaluation of the Internal We have taken the initial step by The ministry has an internal audit Audit Division creating internal audit division and unit but lacks approved internal The Ministry should strengthen the the recruitment of few Internal control manual and functional internal audit function in the Auditors. Subsequently we shall audit committee Ministry. establish audit committee to further reinforce the audit division. Training need in the division will be identified and other actions underway to remedy the situation. Non reconciliation between We are employing measures to MPW is no more collecting pre- MOF and MPW adhere to best practices in Public qualification and construction fees To ensure transparency and Finance; however, regarding the and expending same. The accountability and accurate issues of paid Voucher, the reconciliation between MOF and
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Prior Recommendation Status of Implementation of Management Response 2006/07 prior Audit recommendation financial reporting, I Ministry of Finance has never sent MPW is not been implemented as recommended that the triplicate to the Ministry of Public Works, recommended by the auditors. and the quadruplicate copies of PAID VOUCHERS at any given the paid voucher be returned point. It will be prudent enough under registered cover to the for the MOF to send a copy of Ministry on whose behalf the every paid voucher to us in an payments were made. effort to regularly update our books and reconcile our accounts. Management should reconcile and Moreover, we will harmonize the account for the differences issues with MOF in seeing to it that highlighted above. a copy of every paid voucher is sent to us. Management should endeavour to As regards to spending in FY put in place appropriate and 2006/2007; find below the reliable accounting procedures and illustrations: Adj. Appro. record keeping practices so as to 5,671,931; CMC 5,290,491; EDP ensure that expenditure records 381,439; kept by the Ministry of Finance on Arrears 65,258 behalf of the Ministry, and reports Total Exp 5,737,188. generated are consistent and reliable. The variance (arrears of USD$65,258) is explained by the budget under central Government control, through which statutory payment through EDP were made in processing arrears accumulated under previous Governments.” Unsupported Petty Cash Petty cash procedure was Petty cash is still being spent Expenditure developed by the financial without receipts and other Antoinette Rose, petty cash management control division supporting documents custodian should account for the during the fiscal year 2007/ 2008. unsupported petty Cash During the period under review expenditure in amount totaling (2006-07), Petty Cash was not US$52,810.23. distributed to various Offices Antoinette Rose should make instead it was centralized and available the necessary payment from the documentations for all petty cash Petty Cash was done through unaccounted for. payment request and approval by Deputy/Assistant Minister for Administration in some instances the Minister, and said document were submitted to you. Poor Record Keeping in the Management did recognize there Relevant details such as letters of Personnel Division were challenges in the creation appointment, CVs, and PAN forms
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Prior Recommendation Status of Implementation of Management Response 2006/07 prior Audit recommendation Management should update the and management of personnel are still lacking in some personnel personnel files and ensure that files in accordance with civil files. there is compliance with the Civil service standing orders. However, Service Agency’s Standing Orders the Ministry shall put in place tools for the Civil Service. and requisite steps to create and manage the personnel process that will improve records keeping procedures. Non Provision of Scholarship We did not have a system in place Recommendation on this prior Payment Records to properly supervise and monitor audit has not yet been fully Mr. J. Arthilus Bruce, the Assistant the scholarship program in the implemented in that Minister for Planning and Bureau of Planning and documentation on the Programming in the bureau Programming. All efforts are now disbursement for scholarship of Planning and Programming been put in place to correct this indicated that the amount paid to should account for the US$16,556 and other policy issues. the institution on behalf of the incurred on scholarships by beneficiaries could not be fully provision of details of the substantiated. scholarship staff, details of the programs undertaken, evidence of We also observed that the Ministry payment and records of approval failed to sign a memorandum of from the Ministry. understanding with two employees In future, management should which would have bound both ensure that there is a policy in parties, thus bringing back to the place relating to the selection of Ministry, benefits in service and students, signing of bonding knowledge for the resources contracts and proper maintenance expended on the employees. of records with regard to scholarship students. Non Maintenance of Fuel Mr. Mohammed Fofana (supply The is no evidence that prior audit Requisition Forms and officer), Mr. Richard Wah recommendation was Coupons (Warehouse supervisor) and Mr. implemented. And no legal action Mr. David Carter (former Deputy David Carter ( Deputy Director for taken against the responsible Director for supply), Mr. Richard supply ) were directly responsible officers. Wah (former for receiving and distribution of all warehouse supervisor) and Mr. liquid fuel and the procurement of Mohammed Fofana (former Supply all fuel during the period under Officer) should review were being initiated and account for all fuel procured in executed by the then Deputy amounts totalling US$621,449 by Minister for Administration (Hon. providing all fuel requisition forms Stephen Y. Neufville). Therefore, and fuel coupons in amounts these individual should be asked to totalling US$75,000 by providing account for the USD$621,449.00 the coupons and details of the As the record, including the staff who consumed the fuel. minutes of meetings will indicate that affected personnel changes
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Prior Recommendation Status of Implementation of Management Response 2006/07 prior Audit recommendation The Ministry should take steps to were made when it was brought to maintain proper records in the our attention some irregularities in form of receiving and distribution the fuel transactions; the matter logs, fuel requisition forms and was investigated. Subsequently, a update their records regularly. new procurement consultant was acquired via CSA program. Latter, all procurement personnel were transferred and replaced. Additionally, the assistance of UNDP was sought. This resulted in training and deployment of some procurement officers. Eventually, the Legal Section was ordered to send the matter to the Ministry of Justice for further action. None Compliance with the Minister Dunzo said that “the Management continuously fails to Travel Ordinances financial management records comply with the Travel Minister Dunzo should submit all (which I do not now have access Ordinances. evidence of travel to account for to) will indicate that the reported US$77,981.00 spent on his trips. foreign travel were taken by the Minister were duly authorized and processed through the Department of Administration (DA). Attached are copies of some pertinent information that are currently available (visa, ticket, etc).also the records on domestic travel are programmed to be at DA. “
The Department of Administration (DA) in response to the Minister’s comments said that “Concerns raised by GAC are well intentioned. Initial critical steps have been taken and all efforts are being made to ensure that sound accounting procedures and practices are instituted.
As regards domestic travels, we will endeavour to institute full compliance to procedures; however, we would like to note flexibility because of the nature of our job which sometimes required
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Prior Recommendation Status of Implementation of Management Response 2006/07 prior Audit recommendation emergencies.”
2007/08 RECOMMENDATION Status of Implementation of Prior Recommendation Management Response prior Audit recommendation Budget Performance Analysis No response was received from Measures have not yet been There is a need to put stringent Management on this observation, taken by the ministry to measures in place to ensure that even though Audit Observation implement this prior all revenues due the Memorandum (AOM) and recommendation. Government are collected. Management Letter were submitted. I recommend that Former Minister Loseni Dunzo and former Deputy Minister for Technical Services Togba Ngangana provide the payment vouchers and supporting documentation of expenditure made for the WASH and the Scheifflin-Marshall Road Projects. Contract between the MPW Many of the contracts under Prior recommendations have not and Morweh Liberia Limited review were entered into in prior been implemented as contracts Management should be made to periods when there was little or awarded to construction account for all the truck loads, no system in place at the companies were not vehicle information including Ministry. For example Africa implemented in some instances. plate numbers, name of the river Motors, MDMC Express and RMA by providing the necessary Liberia Limited were contracts information including delivery executed prior to our arrival here notes, bid documents, and at MPW. There appears to be no Resident Engineer Report to the bid documents on these GAC. contracts to my knowledge. The Ministry should ensure full Second, the other contracts compliance with all Government mentioned in your observation regulations and contractual term have been booked for with regard to bidding nonperformance and have been procedures and provide evidence submitted to the Ministry of of delivery and performance Justice. There are contracts guarantee. between the Ministry and listed contractors. As far as the Management should be made to procurement process goes, there provide reasons why the was expression of interest in the Resident Engineer did not submit local dailies and on the internet project assessment and in fulfillment of the PPCC’s Act. monitoring report and project Contractors were invited to be completion report. shortlisted and the former
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Status of Implementation of Prior Recommendation Management Response prior Audit recommendation Deputy Minister for In the absence of these Administration in close documents, the Government of collaboration with our Legal Liberia through the Minister of Department managed the Justice should employ the selection and contracting necessary legal means to fully processes. The Legal Department recover the amount of the would have copies of the contract from the Contractor, contracts. former Minister Loseni Dunzo and former Deputy Minister for Administration Stephen Y. Neufville. Contract between the MPW Many of the contracts under Non-performance of contracts and Nimely Equipment review were entered into in prior entered into between MPW and Incorporated periods when there was little or contractors still continue up to Management should be made to no system in place at the the recent audit periods thereby account for all the truck loads, Ministry. For example Africa not implementing prior audit vehicle information including Motors, MDMC Express and RMA recommendations. plate numbers, name of the Liberia Limited were contracts driver by providing the necessary executed prior to our arrival here information including delivery at MPW. There appears to be no notes, bid documents, and bid documents on these Resident Engineer Report to the contracts to my knowledge. GAC. Second, the other contracts The Ministry should ensure full mentioned in your observation compliance with all Government have been booked for regulations and contractual term nonperformance and have been with regard to bidding submitted to the Ministry of procedures and provide evidence Justice. There are contracts of delivery and performance between the Ministry and listed guarantee. contractors. As far as the procurement process goes, there Management should be made to was expression of interest in the provide reasons why the local dailies and on the internet Resident Engineer did not submit in fulfillment of the PPCC’s Act. project assessment and Contractors were invited to be monitoring report and project shortlisted and the former completion report. Deputy Minister for Administration in close In the absence of these collaboration with our Legal documents, the Government of Department managed the Liberia through the Minister of selection and contracting Justice should employ the processes. The Legal necessary legal means to fully Department would have copies of
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Status of Implementation of Prior Recommendation Management Response prior Audit recommendation recover the amount of the the contracts. contract from the Contractor, former Minister Loseni Dunzo and former Deputy Minister for Administration Stephen Y. Neufville. Poor Record Keeping in the Section 1.2.5 of the 1983 Poor record keeping is still a Personnel Division standing order of the Civil service problem. This issue has not Management should update the is being strictly adhered to. been adequately addressed. personnel files and ensure that Individual personnel files has there is compliance with the been created and all documents applicable Civil Service Agency to include appointment, transfer, (CSA) Standing Orders for the suspension, warning, academic if Civil Service. This will include any, etc. All files requested for in monthly updates of personnel query NO. 06 of 2009 for 2008 listing and comparing it with MOF accounts were made available prepared payroll and CSA issued except for payrolls and other Personnel Action Notices (PAN). documents that weren’t within 192. The Personnel Director their reach. He indicated that all should provide all requested files requested for in query No.06 documents to the GAC. of 2009 for 2008 accounts were 193. The Deputy Minister for made available except for Administration should coordinate payrolls and other documents the Management of personnel that weren’t within their reach. data in He noted that documents are collaboration with the Personnel pass worded for confidentiality Director and the pass wording of their personnel listing in no way stopped the auditors from carrying out their duties at the MPW; that the personnel listing is available and the auditors are welcomed to come and continue the payroll audit. Moreover, he further indicated that the Deputy Minister for administration was not physically involved with the personnel database creation which resulted in the pass wording of said documents and he therefore cannot prevent access to the personnel database.
He further noted that payrolls
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Status of Implementation of Prior Recommendation Management Response prior Audit recommendation are kept at the Ministry of Finance and not in the individual Ministries, so the auditors should contact the Ministry of finance for copies of payroll for the period under audit. Irregular Payment of Foreign We take note of your observation Foreign scholarship is still Scholarship and admitted that we posted the awarded not in adherence The former Minister Dunzo amount of US$8,000.00 to the with the ministry’s own HR should ensure that Ms. Mayatu local scholarship code. However handbook. Varfley return to Liberia and the voucher was raised in the work for the Ministry in exchange name of the Drexel University/M. for the Government Scholarship, Varfley. The reason was to avoid or be made to restitute the the payment to Mayatu Varfley amount of US$ 8,000.00 to the but to transfer the tuition to the Liberian Government through the University of Drexel in favor of Ministry. Mayatu Varfley.
The voucher was processed and the payment was done through a transfer to the University by the Ministry of finance. Evidence of this transaction and receipt of payment from the university can be obtained from the Ministry of finance or the Central Bank of Liberia where the transfer of the S$8,000.00 to Drexel University was done. We are doing everything possible to ensure that Miss Varfley returns home to join the MPW to contribute to the rebuilding process of this nation. Non-Retirement of Travel The trips were made but the There is a reoccurrence of non- Advance: US$ 212,465.60 officials involved did not provide retirement which results to the The officials and staff of the the needed documents to prove non-retirement of $1,500.00 MPW who undertook foreign that said travels were made. observed in the recent audit. travels and did not submit related travel documents should be made to provide the documentation to retire their foreign trips. In other words, the officials and personnel of the MPW involved should account for their trips.
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Status of Implementation of Prior Recommendation Management Response prior Audit recommendation Unsupported Petty Cash In all fairness, we admit that the Prior audit recommendation is Expenditure amount of us$4,090.17 was not still not implemented due to the The Former Pay-Lady Antoinette deposited and Withdrawn to reoccurrence of previous Williamson should account for begin the fiscal year July 1, 2007 violations. the unsupported petty cash to June 30, 2008 and the amount expenditure amounting to of us$14,722.69 left as closing US$140,246.10 by making balance in the imprest/petty Cash available the necessary drawer was not deposited into documentations relating to their operational account to be receipts and expenditure of the re-appropriated to form part of imprest fund. the following fiscal year budget. Rather the amount was left in All personnel of the Ministry the safe in the comptroller’s listed in Schedule 6B and office for disbursement at the Schedule 6C should equally beginning of the fiscal period July account for the fund released to 1, them by the petty cash 2008 to June 30, 2009. custodian. It is a fact that we made Ministry of Finance should payments above the US$250.00 enforce all government threshold set in Rule 39 of the regulations on public Financial Rule; during expenditure, including the replenishments, requests were Financial Rules. made to the Ministry of finance with The Ministry should ensure that documentations of expenditure all unspent imprest at the end of which were attached and the fiscal period are redeposited approvals were given based on into the operational account and those attachments. said fund must be re- appropriated for the subsequent Retrieval of documentations is a fiscal period. major problem because of lack of All expenditure must be filing space at the finance accounted for under the relevant division of the ministry and we expenditure code unless through are doing everything possible to a documented transfer request. properly arrange our files for easy access to documents at the time of need especially during the period under audit. However, we submitted some files to the auditors containing replenishment documents from various bureaus and divisions.
We admit there was error made
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Status of Implementation of Prior Recommendation Management Response prior Audit recommendation by issuing receipts from the petty cash receipt books for cash that was not sourced from MPW Imprest or petty cash Fund. For example, during the clearing of containers from the port of Monrovia we received US$ 6,500.00 in addition to what we had, from Mr. Kpedee Woiwor since MPW at the time did not have available cash to speed up payment at NPA and to avoid payment overdue storage fees.
The amount was refunded at a later date but the disbursement was done from the petty cash receipt book as was reflected in the schedule. As you can see, all payments mentioned in the referenced schedule occurred in like manner but we are doing everything possible to put in place all your recommendations and we need your assistance in this direction. Non-Insurance of the No response was received from The ministry now has an Ministry’s Assets Management on this observation, insurance policy in place but fails Management should ensure that even though Audit Observation to insure all of its assets. an insurance policy is in place to Memorandum (AOM) and cover all the Ministry’s assets, so Management Letter were as to safeguard the equipment submitted. and personnel and to also circumvent cost evolving from accidents. The insurance policy should be obtained from a reputable insurance company with sufficient capital adequacy to pay claims when incurred. Assets on MPW Listing but No response was received from Prior audit recommendation not on GSA Asset Listing Management on this observation, concerning asset management in The Minister and the Director even though Audit Observation the ministry has not yet been General of GSA should ensure Memorandum (AOM) and implemented. There is no reliable that the MPW fixed asset listing Management Letter were reconciliation of assets records
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Status of Implementation of Prior Recommendation Management Response prior Audit recommendation is reconciled with GSA Asset submitted. between the GSA and MPW. Register, wherein variances are noted, investigated, remedied and documented. The Minister should ensure a comprehensive Fixed Asset Register is developed and updated regularly with updates submitted to GSA in a timely manner.
The Minister should ensure that all the Ministry fixed assets are submitted to GSA for proper coding and registration into GOL assets register at GSA before placing same into operation.
The Minister in collaboration with GSA should ensure additions and deletions from the Fixed Asset Register are sufficiently documented, meeting all the requirements contained in the PPCC Act, 2005.
The Minister should ensure that assets donated by friendly Governments are assigned costs or assessed value for accounting purposes.
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ANNEX II. WASH PROJECTS AWARD BY MPW
(B) (C) (D) # Of Wells (A) Cost of Cost of Balance from & Latrines # of Wells Advance Wells Latrines Advance Contract Contracte & Latrines Contract Payment Completed completed Payment US$ Contractor date Location d completed Value US$ US$ US$ US$ (A-B-C=D) Comment Amount to Aquifer Dec. 15, 10 wells & 2 2 latrines be Services 2010 Bong Latrines completed 17,512.38 - 11,246.00 6,266.38 accounted for by 10 wells & 2 3 wells Aquifer Lofa Latrines completed 17,512.38 9,756.00 - 7,756.38 services for failure to complete work for which advance was Sub-Total 87,561.88 35,024.75 9,756.00 11,246.00 14,022.75 received
Dec. 15, 10 wells & 2 Amount to youth Care Inc 2010 Grand Bassa Latrines none 15,477.60 - - 15,477.60 be accounted 10 wells & 2 for by Rivercess Latrines none 15,477.60 - - 15,477.60 Youth Care for failure to complete work for which advance Sub- Total 77,388.01 30,955.20 - - 30,955.20 was
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(B) (C) (D) # Of Wells (A) Cost of Cost of Balance from & Latrines # of Wells Advance Wells Latrines Advance Contract Contracte & Latrines Contract Payment Completed completed Payment US$ Contractor date Location d completed Value US$ US$ US$ US$ (A-B-C=D) Comment received
Zakimah Amount to Continental be Holding Dec. 15, 10 wells & 2 accounted Company 2010 Grand Kru Latrines none 15,194.00 - - 15,194.00 for by 10 wells & 2 Zakimah Maryland Latrines none 15,194.00 - - 15,194.00 for failure to 10 wells & 2 complete Sinoe Latrines none 15,194.00 - - 15,194.00 work for which advance 113, was Sub- Total 955.00 45,582.00 - - 45,582.00 received
10 wells Amount to B-Con completed & be paid to Engineering Dec. 15, 10 wells & 2 2 Latrines B-CON Company 2010 Cape mount Latrines incomplete 15,443.67 27,360.00 - - 11,916.33 Engineerin g 10 wells & 2 3 wells dug Company Gbarpolu Latrines only 15,443.67 - - 15,443.67 for work 9 wells, 2 done that 10 wells & 2 latrines is more Margibi Latrines completed 15,443.67 24,633.00 11,246.00 - 20,435.33 than the advance Sub- Total 115,827.50 46,331.00 51,993.00 11,246.00 - 16,908.00 received by
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(B) (C) (D) # Of Wells (A) Cost of Cost of Balance from & Latrines # of Wells Advance Wells Latrines Advance Contract Contracte & Latrines Contract Payment Completed completed Payment US$ Contractor date Location d completed Value US$ US$ US$ US$ (A-B-C=D) Comment the company
Amount to Wologizi 8 wells & 2 be paid to Construction Dec. 15, 10 wells & 2 Latrines - Company 2010 Bomi Latrines Completed 24,426.21 21,144.00 11,044.00 7,761.79 Wologizzi Const 6 wells & 2 Company 9 wells & 2 Latrines - for work Montserrado Latrines Completed 24,426.21 15,636.00 11,044.00 2,253.79 done that is more than the advance received by the Sub- Total 71,970.30 48,852.42 36,780.00 22,088.00 - 10,015.58 company
Amount to General be Fabrication and accounted Construction for by Business Dec. 15, Grand 8 wells & 2 General Corporation 2010 Gedeh Latrines None 20,572.00 - - 20,572.00 Fabrication 10 wells & 2 for failure Nimba Latrines None 20,572.00 - - 20,572.00 to 4 wells dug complete 10 wells & 2 uncomplete work for River Gee Latrines d 20,572.00 - - 20,572.00 which
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(B) (C) (D) # Of Wells (A) Cost of Cost of Balance from & Latrines # of Wells Advance Wells Latrines Advance Contract Contracte & Latrines Contract Payment Completed completed Payment US$ Contractor date Location d completed Value US$ US$ US$ US$ (A-B-C=D) Comment advance was Sub- Total 154,290.02 61,716.00 - - 61,716.00 received
Grand Total 620,992.71 268,461.37 98,529.00 44,580.00 Grand Total to be accounted for By defualted Companies 152,275.95 Grand Total to be reimbursed by MPW 26,923.58
ANNEX IIA GAC Report/Comments MPW Report/Comments as per GAC Report dated Contractors Name Contract/Projects County (AOM Ref:MPW-GAC- 16th July 2013 09/12-G-10-06 Aquifer Services 10 wells; 2 latrines Bong 3 wells completed; 7 wells 10 wells and 2 latrines completed in Bong County. and 2 latrines left undone in Gbarnga: Sugar Hill-1 latrine completed; iron Gate-1well Bong County. and 1 latrine completed; Civil compound-superintendent area-2 wells completed. Sanoyea District: Commissioner Compound-1 well completed and Gou Town-2 wells constructed without Afridev pumps. Salala District: Yennequelleh-1 well completed. Boisen District: Boata-1 well completed and Fuamah District: Hindii-2 wells completed
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GAC Report/Comments MPW Report/Comments as per GAC Report dated Contractors Name Contract/Projects County (AOM Ref:MPW-GAC- 16th July 2013 09/12-G-10-06 10 wells; 2 latrines Bong No well completed. 10 wells 4 wells completed in Lofa County. Voinjama District: and 2 latrines left undone in Voinjama City-LRRC Community-1 well completed; Lofa County. Lawalazu Road-1 well completed; Adm. Compound-1 well completed; Vezele town-9 (0.9 meter diameter concrete culverts fabricated to line in dug hole; Zorzor District: Yeela town-1 well completed. Started sub structure work at one of the pits by lining concrete blocks at Voinjama Multilateral High School.
Youth Care Inc. 10 wells; 2 latrines Grand Bassa No well completed. 10 wells 9 wells completed in Grand Bassa County. Dirt Hole-1 and 2 latrines left undone in completed;fairground-1 well completed; own your own-1 Lofa County. well completed; Kilby street-1 well completed; Nkreen community-1 well completed; compound #two-1 well completed; compound #three-1 well completed; compound # four-1 well completed. Latrine construction started.
10 wells; 2 latrines Rivercess No well completed. 10 wells 10 wells completed in Rivercess County. Flangboh town-1 and 2 latrines left undone in well completed; Tarkon town-1 well completed; Cestos Lofa County. city/Airfield-1 well completed; Banama town-1 well completed; Tarkpah town-1 well completed; Yarpah town- 1 well completed; Kpala town-1 well completed and Tuitoe town-1 well completed. Latrine construction started.
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GAC Report/Comments MPW Report/Comments as per GAC Report dated Contractors Name Contract/Projects County (AOM Ref:MPW-GAC- 16th July 2013 09/12-G-10-06 WOLOGIZZI 10 wells; 2 latrines Bomi 8 wells; 2 latrines completed 8 wells; 2 latrines completed: Tubmanburg City-Vai town- 1 well completed; Gbalasuah-1 well completed; A.G.M. Campus-1 well completed; Tubman Avenue-1 well completed; Valley Center one-1 well completed; Joseph town-1well completed; valley center two- 1 well completed; New Road community-1 well completed; General Market-1 latrine completed and 1 latrine completed around the Monrovia car Parking Lot.
9 wells; 2 latrines Montserrado 6 wells; 2 latrines completed 6 wells, 2 latrines completed: LPRC Community-1 well completed; Peace Island-1 well completed; Rehab Community-1 well completed; Bona Farm-1 well completed; Christian Community-1 well completed; Gardnerville/LPRC-1 well completed; Shoe Factory-1 latrine completed and Peace island-1 latrine completed.
B-CON Eng. 10 wells; 2 latrines Margibi 2 latrines; 9 wells completed 2 latrines, 9 wells completed: 1 well and 1 latrine completed at Lango Nappy School and Community; Prince Alwali Community-1 well completed; Boloria Township-1 well completed; Central Charlesville-1 well completed; Mendis town-1 well completed; Administrative compound- 1 well completed; Kpanyah Community-1 well completed; New Kakata community-1 well completed; Gotomo town- 1 well completed and Vai town-1 latrine completed.
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GAC Report/Comments MPW Report/Comments as per GAC Report dated Contractors Name Contract/Projects County (AOM Ref:MPW-GAC- 16th July 2013 09/12-G-10-06 10 wells; 2 latrines Cape Mount 2 latrines; 9 wells completed 2 latrines, 2 wells completed: 2 latrines completed in Robertsport; small Bomi-1 well completed; Clay Johnja-1 well completed.
10 wells, 2 latrines Gbarpolu 3 wells dug, 1 latrine uncompleted Zakimah 10 wells, 2 latrines Sinoe None 10 wells, 2 latrines Maryland None 10 wells, 2 latrines Gd, Kru None GFABC 8 wells, 2 latrines Gd. Gedeh None 10 wells, 2 latrines Rivergee 2 wells dug uncompleted 10 wells, 2 latrines Nimba None TOTAL 147 Wells, 30 latrines Table one highlight other activities carried out during the period under review (58 wells and 10 latrines completed)
ANNEX III. MPW NON PERFORMA NCE OF ROADS AND BRIDGES CONTRACTS
Contract Amount Contract Amount Amount for Work Contractor Project Description Location Status US$ Paid US$ Outstanding US$
Harper-cavalla-kablake and GAP Boniken to Yobloken feeder 531,197.24 438,248.07 Maryland Incomplete Roads 92,949.17 Team Liberia Tarsue Bridge 95,000.00 47,500.00 47,500.00 Sinoe Abandoned
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Contract Amount Contract Amount Amount for Work Contractor Project Description Location Status US$ Paid US$ Outstanding US$
SWAGS Engineering Rehabilitation of Kakata to & Construction INC. Borlola to Worhn road 948,987.83 569,392.70 379,595.13 Margibi Incomplete Necklay Town to St. Francis road, Shoe Factory to St. Genesis Liberia Inc. Michael, MVTC to Topo village to New Georgia road 285,411.41 171,246.84 114,164.57 Montserrado Abandoned Neighborhoods Roads (Rock Hole road, Bible way road, Rehab Drive Block 4 road, Darquee Town road, Police Nimely Equipment Academy to A.B Tolbert road, Chubor road, Liberia Renaissance Education complex road and Caldwell North road). 431,041.08 129,312.32 301,728.76 Montserrado Abandoned General Fabrication and Business Corp. Amadu town to Royceville 289,609.97 86,882.99 202,726.98 Bomi Incomplete Finda Architecture Co Gbangua-Kapaiyea-Zorzor 294,482.03 172,019.80 122,462.23 Lofa Incomplete Finda Architecture Zorzor-Yeala Co. 278,917.33 172,019.80 106,897.53 Lofa Incomplete Morwah Liberia Ltd. Belefenia- Jorwah 625,792.72 187,737.82 438,054.90 Bong Incomplete Crossroads Enterprise Inc. Yarpah town – Saryah Town 412,045.93 123,613.78 288,432.15 River Cess Incomplete Friendship International Industry Little Liberia-Timbo beach 49,910.00 24,955.00 24,955.00 River Cess Incomplete Total 4,242,395.54 2,122,929.12 2,119,466.42
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ANNEX IV: PETTY CASH PAYMENT WITHOUT RECEIPTS IN USD VOUCHER AMOUNT RECEIPT VARIANCE VOUCHER N0. PAYEE DATE PAID US$ AMOUNT US$ US$
19-Nov-10 2144 Nancy Towsend 1,000.00 970.00 30.00
24-Feb-11 0049 Josephine Nyantee 4,496.00 3,021.00 1,475.00
22-Mar-11 0007 Momo Kamara 1,000.00 - 1,000.00
12-Aug-09 1476 Josephine Nyantee 4,890.00 4,380.65 509.35
20-Jul-11 0468 Esther Akoi 1,365.00 - 1,365.00
19-Jan-11 2141 Momo Kamara 1,000.00 - 1,000.00
16-Mar-12 2152 James K. Sundaye 1,000.00 323.00 677.00
28-Nov-11 0524 Momo Kamara 1,000.00 550.00 450.00
17-Jun-11 0345 Momo Kamara 1,000.00 570.00 430.00
8-Feb-12 2054 Nancy Towsend 1,000.00 30.00 970.00
28-Jul-11 0480 Josephine Nyantee 3,664.00 2,909.00 755.00
7-Feb-12 2053 Josephine Nyantee 3,454.00 1,899.00 1,555.00 16-mar-12 2156 Josephine Nyantee 4,486.00 3,041.00 1,445.00 26-oct-09 1331 Esther Akoi 2,456.00 1,831.00 625.00
TOTAL 31,811.00 19,524.65 12,286.35
ANNEX V. PETTY CASH PAYMENT WITHOUT RECEIPTS IN L$ VOUCHER AMOUNT PAID RECEIPT VOUCHER # PAYEE VARIANCE L$ DATE L$ AMOUNT L$
23-Sep-11 0877 Alexander V. Holmes 30,047.00 23,197.00 6,850.00
11-May-12 2432 Brender M. Lee 36,000.00 33,100.00 2,900.00
9-Aug-11 0959 Joseph J.Gray 34,610.00 26,275.00 8,335.00
17-Nov-11 0732 Alexander V. Holmes 32,680.00 25,745.00 6,935.00
9-Feb-12 2060 Brender M. Lee 36,000.00 14,970.00 21,030.00
1-Jun-12 2301 Brender M. Lee 36,000.00 23,555.00 12,445.00
10-Jan-12 0695 Alexander V. Holmes 34,710.00 7,640.00 27,070.00
6-Jun-12 2309 Odell W. Dandy 35,000.00 20,110.00 14,890.00 76
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VOUCHER AMOUNT PAID RECEIPT VOUCHER # PAYEE VARIANCE L$ DATE L$ AMOUNT L$
7-Feb-12 2052 Odell W. Dandy 35,000.00 19,525.00 15,475.00
8-Sep-11 0938 Joseph J.Gray 34,900.00 27,390.00 7,510.00
3-Oct-11 0895 Odell W. Dandy 35,000.00 5,245.00 29,755.00
1-Mar-12 2120 Brender M. Lee 36,000.00 29,420.00 6,580.00
7-Sep-11 0932 Odell W. Dandy 35,000.00 14,000.00 21,000.00
27-Jun-11 0377 Alexander V. Holmes 25,040.00 22,850.00 2,190.00
1-Mar-11 0049 Jackson P. Sarwee 29,920.00 26,770.00 3,150.00
4-Mar-11 0049 Christian G. Herbert 35,000.00 31,500.00 3,500.00
7-Jul-10 2308 Christian G. Herbert 35,000.00 27,100.00 7,900.00
11-Mar-10 1956 Julia B. Sesay 34,845.00 32,380.00 2,465.00
7-Jan-10 1807 Christian G. Herbert 35,000.00 23,800.00 11,200.00
14-Dec-09 1549 Jackson P. Sarwee 32,500.00 18,525.00 13,975.00
TOTAL 678,252.00 453,097.00 225,155.00
ANNEX VI. PETTY CASH AMBIGUOUS RECEIPTS IN L$ AND US$ AMBIGUOU VOUCH AMBIGUOU VOUCH AMOUNT AMOUNT S RECEIPTS ITEM ER PAYEE S RECEIPTS ER # PAID L$ PAID US$ AMOUNT PURCHASE DATE AMOUNT L$ US$ 25-Jun- Julia B. Assorted 10 2488 Sesay 35,000 8,500.00 - provisions 9-Dec- Julia B. 09 1530 Sesay 32,425 9,405.00 - Assorted goods Julia B. 4-Jan-10 1492 Sesay 32,980 8,000.00 - Assorted goods 11-Mar- Julia B. Assorted Office 10 1956 Sesay 34,845 11,500.00 - Provisions Joseph Provision & 8-Apr-10 2404 Gray 35,000 4,725.00 - refreshment Cynthia 22-Apr- W. 10 0526 Nimely - - 1,908 196.55 Miscellenuous
TOTAL 170,250 42,130.00 1,908 196.55
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ANNEX VII. PETTY CASH PAYMENT WITHOUT REPLINSHMENT REPORTS VOUCHER DATE VOUCHER # PAYEE AMOUNT (US$ 11/20/2009 1432 Josephine Nyantee 4,981.00 12/9/2010 2199 Momo Kamara 1,000.00 3/22/2011 0007 Momo Kamara 1,000.00 1/19/2011 2141 Momo Kamara 1,000.00 TOTAL 7,981.00
ANNEX. VIII. EMPLOYEES ON MPW PAYROOL BUT NOT ON PERSONNEL LISTING NAME PAYROLL NUMBER POSITION Joe T. Dennis 24-06-599-0012 Clerk Typist King Peter 24-09-418-0002 Grader Operator Thomas Peter 24-14-599-3060 IT Technician Jideous B. Stewart 24-14-418-5050 Civil Engineer Morris Amulah 24-14-205-0014 Driver Arkie Attiem, Sr. 24-14-506-2490 Driver Peter G. Brooks 24-14-413-0010 Civil Engineer Richard Fofana 24-14-241-0311 Truck Driver Mark Dolo 24-o1-599-1515 Custodian Robert Domah 24-25-426-0008 Engineer Aide II Joseph T. K. Mensah 24-04-599-0888 Zoning Inspection Tom Smith 24-21-201-0020 Mechanic Ruth Lloyd 24-01-102-8080 Secretary Kamara A. Varney 24-01-599-0003 Mechanic Torh-broplex 24-01-478-4409 Security Kamara A. Varney 24-01-599-0003 Mechanic Peterson Walker 24-01-441-0001 Internal Auditor Rosetta Weah 24-01-513-5505 Custodian Abraham S. Kaidii 24-01-505-1712 Driver
ANNEX. IX. EMPLOYEES WITH TWO PAYROOL NUMBERS NUMBER ON NUMBER ON DA TE OF NAME PERSONNEL POSITION PAYROLL EMPLOYMENT LISTING Joseph Tamba 24-01-458-0002 24-25-458-0002 Jan. 10, 2003 Driver Victoria Y. Tarr 24-01-104-0002 24-25-104-0002 Nov. 28, 1996 Clerk Typist Moses K. Togbeh 224-01-599-0008 24-25-104-0002 Apr. 16, 1991 Caretaker Peter Tokpa 24-01-599-0010 24-25-599-0010 May 19, 1998 Caretaker Nancy Townsend 24-01-208-0002 24-25-208-0002 May 6, 2002 Training Assistant Aklayiah Andrews 24-01-506-0002 24-25-506-0002 May 4, 2004 Procurement Jimmy Blah 24-01-271-0007 24-25-271-0007 May 30, 2000 Well Developer Musa Kanneh 24-01-104-0006 24-25-104-0006 Nov. 18, 1990 Driller
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NUMBER ON NUMBER ON DA TE OF NAME PERSONNEL POSITION PAYROLL EMPLOYMENT LISTING Dennis Kanneh 24-01-104-0005 24-25-104-0005 Sept. 4, 2001 Security Cyrus Daniel 24-01-518-0019 24-25-518-0019 July 20, 2007 Pipe Filter Lydia Grant 24-01-599-0028 24-25-599-0028 Aug. 5, 2004 Filing Clerk
ANNEX. X EMPLOYEES FILES WITH MISSING DOCUMENT NAME POSITION PAYROLL NUMBER Missing Documents Prince S. Tugbeh Director 24-01-235-2140 No medical report & PAN form.
Michael Paye Kpayili Assistant Director 24-01-478-6666 No medical report and appointment letter, Dominic S. Sunneh, Jr. Procurement Officer 24-01-360-7888 No letter of appointment and medical report Saah T. Aaron Account Technician 24-01-319-5980 No letter of appointment and medical report Josephine Welleh Accountant 24-01-242-0422 No PAN form, medical report Nyantee and letter of appointment. Morris Sayley Senoir Accountant 24-02-107-0001 No PAN form, medical report and letter of appointment. Pewee Maxwell Account Technician 24-01-319-6774 No medical report and letter of appointment. Bonar Kekula Chief Accountant 24-01-415-0446 No medical report and letter of appointment. Fatu Rachel Massaquoi Office Manager 24-01-599-0037 No letter of appointment. Jackerline Gartayn Accountant 24-01-417-9994 No medical report and letter of appointment. Roseline Tarpeh Accountant 24-01-241-0569 No letter of appointment Brender M. Lee Adm. Assistant 24-01-816-0088 No medical report and C.V. Lehn Kamara Ware House 24-01-599-0054 No medical report and C.V. Assistant
ANNEX XI. MPW ASSETS WITHOUT GSA CODE DESCRIPTION SERIAL # MODEL/MAKE GSA CODE MINISTER’S OFFICE TV 908716052 SHARP None TV 3T332G1B393501NFF350128 HISENSE None TV TV N/A SHARP None ICE BOX 1151344TCL081100130 MENTAL None PRINTER HP Officejet-700 wide 009C2286975 format None PRINTER HT10660 CANAN PC-D320 None 79
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DESCRIPTION SERIAL # MODEL/MAKE GSA CODE
PRINTER CNIK44872 HP LASERJET-1018 None PRINTER CN9A93B2IN HP DESKJET D1663 None PRINTER VNCAG86227 JASERJET P1102 None SCANNER CN965522V HP SCSNJET G2410 None DESKTOP BYPN325 DELL OPTIPLEX 360 None ICE BOX N/A NIKAL None ICE BOX N/A WEST POINT None ICE BOX NRR135 NIKAL None ICE BOX WT12XTR123462EBJT WHIRLPOOL None PHOTOCOPIER NCW2667 CANON IR2016 None WATER COOLER N/A MENTAL None 8 AIRCONDITIONERS N/A N/A None PHOTOCOPIER NWM48517 CANON IR2018 None 2 SETS OF LIVING ROOM WOODEM N/A CHAIRS None
DEPUTY MINISTER FOR TECHNICAL SERVICES DELL GPHN32S Desktop optiplex360 None DELL BRLLT1S Desktop optiplex330 None DELL C84JGB1 Dell dimension E 520 None PHOTOCOPIER MWN79303 Canon IR 2018 None LAPTOP 99066805W Toshiba None PRINTER CNCLCJ31012 HP Laserjet 2055dn None PRINTER MY8CY31ONY HP OfficeJet 7103 None WATER COOLER N/A N/A None 4 L-SHAPE DESKS N/A N/A None 1 SET LIVER ROOM CHAIR N/A N/A None
DEPUTY MINISTER FOR ADMINISTRATION DELL CN-OU417N-64180-98J-2125 Desktop optiplex None DELL CN-OU417N-6410-98J-24US Desktop optiplex None DELL CN-OU417N-64180-98H-6JS Desktop optiplex None PRINTER 2335DN DELL None PRINTER HPDESKJET F380 HP None PHOTOCOPIER N/A N/A None 1 SET OF LIVING ROOM N/A N/A CHAIR None ICE BOX (SMALL) N/A N/A None BOOK SHALVES (GLASS) N/A N/A None
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DESCRIPTION SERIAL # MODEL/MAKE GSA CODE 3 PCS. OF EXECUTIVE N/A N/A CHAIRS None GLASS TABLE N/A N/A None 4 AIR CONDITIONERS N/A ADMINRAL None
DEPUTY MINISTER FOR RURAL DEVELOPMENT DESKTOP JLQ242S Optiplex 380 None DESKTOP 31XBTIS Optiplex 380 None DESKTOP JZN32S Optiplex 360 None DESKTOP N/A N/A None REFRIGERATOR N/A Mental None ICE BOX N/A Mental None DESK PHONE N/A N/A None L-SHAPE DESKS N/A Wooden None
PROCUREMENT OFFICE PRINTER N/A HPDESKJET F2180 None PRINTER CNC1R54709 HP LASERJET 1018 None PRINTER 21MWN15874 CANON IR 2018 None PRINTER N/A HP LASERJET P1006 None PRINTER VNC4G8241 HP LASERJET P1102 None DESKTOP CK5165J DELL OPTIPLEX 390 None DESKTOP 8PC742S DELL OPTIPLEX 380 None PRINTER CNDJ95MOG1N LASERJET 1515 None PRINTER CNBW72MOFZ HP LASERJET 2015 None DESKTOP GKQ242S DELL OPTIPLEX 380 None DESKTOP BQPM32S DELL OPTIPLEX 360 None GLASS TABLE N/A GLASS None WATER COOLER N/A N/A None 3 AIRCONDITIONERS N/A N/A None
FINANCIAL MANAGEMENT DESKTOP CN-OUO72N-64180-9CA-2DDU DELL None DESKTOP CN-OUO72N-64180-9CA-2D9U DELL None DESKTOP OUO72N-64180-9CA-2CQU DELL None DESKTOP CN-OXH532-72872-67F-604T DELL None DESKTOP OUO72N-64180-9CA-2CSU DELL None DESKTOP CN-OUO72N-64180-9CA-2CPU DELL None DESKTOP CN-OUO72N-64180-9CA-2DDU DELL None
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DESCRIPTION SERIAL # MODEL/MAKE GSA CODE DESKTOP DELL CN-OUO274R-64180-OIM-IQCM None PRINTER N/A DELL 2330dn None PRINTER N/A CANON None PRINTER N/A HP DESKJET F4180 None PRINTER VNC4G86254 HP LASERJET P1102 None 1 SET OF LIVING ROOM N/A N/A CHAIR None WATER COOLER N/A N/A None
MONITORING AND EVALUATION DESKTOP 3ZWN32S OPTIPLEX 360 None LAPTOP 32923083205 DELL None PRINTER HP LASERJET M1120MFP HP LASERJET None PRINTER CNCKH94056 N/A None DESKTOP CN-OU274R-64180-01M-IR1M DELL None DESKTOP CN-0U417N-64180-98J-51HS DELL None PHOTOCOPIER/PRINTER 1SENSYS N/A None REFRIGERATOR N/A MENTAL None DESK PHONE N/A ZTE None ICE BOX N/A SEMTONI/SANSUR None
INTERNAL AUDIT ACER LAPTOP F26BVP1 PIRON N5030 None DELL N/A INSPIRON 1225 None LAPTOP D96MJ3J DELL None PRINTER HP LASERJET 7000 WIDE N/A FORMAT None DESKTOP CN-OUO274R-64180-01M-25KM DELL None DESKTOP CN-OUO72N-64180-9CA-2BYU DELL None DESKTOP CN-OU274R-64180-0IM-2TAM DELL None DESKTOP CN-OU417N-64180-98H-6YTS DELL None
ARCHITECTURE DESKTOP DSR242S Dell Optiplex 380 None DESKTOP N/A Dell Optiplex 380 None DESKTOP 3Z8K242S Dell Optiplex 380 None DESKTOP 2NR242S Dell Optiplex 380 None DESKTOP 5ZWN32S Dell Optiplex 360 None
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DESCRIPTION SERIAL # MODEL/MAKE GSA CODE
LAPTOP R33142S Acer None LAPTOP N/A Dell None ICE BOX N/A Mental None PRINTER CNCKUJ29456 Insertjet 2055dn None PRINTER UJV51345 Canon None PRINTER D8D38569FD28 HP Jet 7000 None 2 AIRCONDITIONERS N/A Sonic None 2 AIRCONDITIONERS Gibson N/A None
ELECTRICAL DIVISION DESKTOP 5MHN32 Optiplex 360 None PRINTER N/A Canon PC-940 None 1 set of living room chair n/a Wooden None DESKTOP J9D742S Dell Optiplex 380 None AIRCONDITIONERS N/A Mental None EXECUTIVE CHAIRS N/A N/A None
ASSISTANT MINISTER FOR TECHNICAL SERVICES DESKTOP 5NHN32S Dell Optiplex 360 None PRINTER CPBR4H1 Dell 2335 DN None PRINTER EZR60448 Canon PC-D340 None DESK PHONE ZTE.324083518305 ZTE WP836 None ICE BOX N/A Mental None EXECUTIVE CHAIRS N/A Wooden None L-SHAPE DESK N/A N/A None
PUBLIC RELATIONS OFFICE DESKTOP JPC742S Dell Optiplex 380 None PHOTOCOPIER GUQ02049 Canon lr2320 None LAPTOP YVMJXLI Dell Vostro None PRINTER CNCIS5O68 Laserjet 1018 None ICE BOX N/A Mental None TV N/A Sharp None TV N/A Super star None TV N/A Super star None CAMERA N/A Canon XL2 None VIDEO RECORDER N/A Canon XL2 None DESKTOP 8XNYV2J Dell Optiplex 360 None 3 AIRCONDITIONERS Admiral N/A None
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DESCRIPTION SERIAL # MODEL/MAKE GSA CODE
PHONE N/A Gota None
ZONING REFRIGERATOR N/A Mental None DESKTOP GTN242S Dell Optiplex 380 None DESKTOP DLQ242S Dell Optiplex 380 None DESK PHONE N/A ZTE None DESKTOP 2ZWN32S Dell Optiplex 360 None DESKTOP S04265872 Dell Inspiron 530s None DESKTOP 6PBR4H1 Copier dell 2335on None DESKTOP HWN242S Dell Optiplex 380 None PRINTER CNBW72MDGM Laserjet 2015 None PRINTER GCONFN1 Dell None PRINTER VNC9Q86240 Laserjet P1002 None PRINTER 22TTLFI N/A None
MOTOR BIKES Yamaha N/A AG-100 None TVS N/A N/A None Yamaha N/A AG-100 None Yamaha N/A AG-100 None
Equipment on GSA listing that could not be traced on MPW list MODEL VIN/SERIAL PLATE MODEL MANUFATURE TYPE COLOR GSA CODE YEAR # N0. L125S- GSA-MPW- XL125 Honda 2011 Motorcycle White/Red 5755080 MC-13 MC-13 L125S- GSA-MPW- XL125 Honda 2011 Motorcycle White/Red 5755028 MC-12 MC-12 Apache MD634KE40B2 GSA-MPW- 160cc TVS N/A Motorcycle Black H81937 MC-28 MC-28 Apache MD634KE43B2 GSA-MPW- 160cc TVS N/A Motorcycle Grey H81947 MC-29 MC-29 Hard ADNCJUD22Z0 GSA-MPW- body Toyota N/A Pickup Silver 017328 02-98 RL-1707 Hard ADNCJUD22Z0 GSA-MPW- body Nissan 2012 Pickup White 023456 02-108 RL-1729 Toyota Hilux AHTFK22G- GSA-MPW- N/A Pickup 2008 Pickup N/A 903035177 02-49 N/A Toyota Hilux AHTFK22G- GSA-MPW- N/A Pickup 2008 Pickup N/A 103035769 02-57 N/A Komatsu Crawler GSA-MPW- Pc 300-8 Excavator 2012 Excavator Yellow 63188 10-1 N/A
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ANNEX. XII. MPW VEHICLES THAT WERE NOT INSURED DURING THE PERIOD Year Plate Description Serial # Cost US$ Comment Purchased # HQ0082930300 RL - Chevrolet Pick UP S/C N/A 01XZX 7,000.00 1639 GOL MROFR22G7B0 Toyota Hilux Pickup 2011 597092 28,500.00 RL-1698 GOL MROFR22G7BO Donated by Toyota Hilux Pickup 2011 596894 - RL-1699 UNICEF JTELB71J- Donated by Toyota Land Cruiser 2011 30789511 - RL-1700 UNICEF JTELB7J207089 Donated by Toyota Land Cruiser 2011 483 - RL-1701 German Agro JTELB71J- Toyota Land Cruiser 2011 407066691 31,000.00 RL-1704 GOL Nissan Hardbody ADNCJUD22Z0 Pickup 2012 017328 31,000.00 RL-1707 GOL Nissan Hardbody ADNCJUD22Z0 Pickup 2012 016414 31,000.00 RL-1708 GOL Nissan Hardbody ADNCJUD22Z0 Pickup 2012 016508 29,650.00 RL-1704 GOL AHTFK22G- Toyota Hilux Pickup 2012 103063930 31,235.00 RL-1714 GOL Ranger XL DC 4X4 LHD 2010 XLDC4X4LHD 31,235.00 RL-1723 GOL Toyota LC 200 GXR8 JTMHVO9JXB4 SAR DSL AT 2012 059536 60,000.00 O-19 GOL JTEBD9F- Toyota Prado Jeep 2012 J9CK009608 44,500.00 RL-1724 GOL JTEBD9F- Toyota Prado Jeep 2012 J9CK009605 44,500.00 RL-1725 GOL MNCLS4D10CW Ford-209976 2012 401884 31,088.81 RL-1727 GOL KMHCT41DACU Ford-209976 2012 112883 17,500.00 RL-1712 GOL MNCLS4D10CW Hyundai Accent 2012 403711 31,088.81 RL-1728 GOL Total US$449,297.62
MPW MOTOR BIKES THAT WERE NOT INSURED Year GSA Description Serial # Cost US$ Comment Purchased Code LRYJCKL86COO MPW - KAINUO-KN150GY-81 2012 25647 2,500.00 MC-35 GOL LRYJCKL85COO MPW - KAINUO-KN150GY-81 2012 25655 2,500.00 MC-31 GOL LRYJCKL80COO MPW - KAINUO-KN150GY-81 2012 25658 2,500.00 MC-34 GOL
LRYJCKL84COO MPW - KAINUO-KN150GY-81 2012 25713 2,500.00 MC-30 GOL KAINUO-KN150GY-81 2012 LRYJCKL86COO MPW - GOL
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Year Plate Description Serial # Cost US$ Comment Purchased # 25731 2,500.00 MC-38 LRYJCKL81COO MPW - KAINUO-KN150GY-81 2012 25720 2,500.00 MC-39 GOL LRYJCKL81COO MPW - KAINUO-KN150GY-81 2012 25653 2,500.00 MC-33 GOL LRJCKL88COO2 MPW - KAINUO-KN150GY-81 2012 5665 2,500.00 MC-36 GOL LRYJCKL88COO MPW - KAINUO-KN150GY-81 2012 25732 2,500.00 MC-37 GOL LRYJCKL88COO MPW - KAINUO-KN150GY-81 2012 25659 2,500.00 MC-32 GOL Total US$25,000.00
Annex XIII. Payment Voucher without three quotations Date Voucher #. Vendors Amount US$ 29-Dec-10 MPW-409-000106 Insight Publisher, Inc 7,000.00 21-Nov-11 MPW-409-000072 Liberia Observer Corp. 5,075.00 7-Mar-11 MPW-409-000171 Informer News Paper 4,200.00 3-Jan-11 MPW-409-000117 New Era Publication LTD 3,675.00 25-Nov-11 MPW-409-000076 FrontPage Africa 3,600.00 3-Dec-11 MPW-409-000116 Insight Publisher, Inc 3,500.00 20-Oct-11 MPW-409-000044 Heritage News Paper 3,200.00 7-Dec-11 MPW-409-000093 Heritage News Paper 3,200.00 30-Jan-12 MPW-409-000141 In-Profile 2,950.00 2-Feb-10 MPW-409-000122 New Era Publication LTD 2,925.00 21-Nov-11 MPW-409-000069 The Independence News Paper 2,925.00 14-Jun-11 MPW-409-000306 New Era Publication LTD 2,800.00 8-Dec-09 MPW-409-000064 New Democrat 2,525.00 29-Dec-10 MPW-409-000103 Heritage News Paper 2,250.00 TOTAL 49,825.00
Annex XIIII Fuel Supplied MPW that could not be traced to receiving Log Qty of liquid Qty Fuel Amount Paid Date Voucher No. Payee Fuel in coupons in US$ gallons gallons Lib- Afric Associates , 15-Sep-09 MPW-409-000012 Inc. 12,942 40,120.00 1-Oct-09 MPW-409-000021 Total Liberia Inc. 10,000 32,000.00 Lib- Afric Associates , 2-Dec-09 MPW-409-000051 Inc. 10,000 3,350 41,992.00 2-Dec-09 MPW-409-000050 Total Liberia Inc. 10,000 32,000.00 Lib- Afric Associates , 14-Dec-09 MPW-409-000069 Inc. 10,000 31,200.00
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Qty of liquid Qty Fuel Amount Paid Date Voucher No. Payee Fuel in coupons in US$ gallons gallons 16-Dec-09 MPW-409-000072 Super Petroleum Co. 10,000 33,500.00 29-Dec-09 MPW-409-000082 Super Petroleum Co. 10,000 33,500.00 30-Dec-09 MPW-409-000088 Super Petroleum Co. 15,000 50,250.00 9-Feb-10 MPW-409-000134 Super Petroleum Co. 10,000 33,500.00 3-Mar-10 MPW-409-000163 Super Petroleum Co. 10,000 33,500.00 22-Apr-10 MPW-409-000225 Super Petroleum Co. 12,000 42,000.00 26-May-10 MPW-409-000271 Super Petroleum Co. 8,500 29,750.00 30-Jun-10 MPW-409-000360 Super Petroleum Co. 8,000 28,000.00 Total 136,442 gals 3,350 gals US$461,312.00
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