GAC Audit Indicts Former NHA Management Over Financial Mismanagement

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ADNews-Monrovia:The National Housing Authority (NHA) is facing intense scrutiny following the release of a damning audit report by the General Auditing Commission (GAC). The report, which assesses the NHA’s financial management for the fiscal year ending June 30, 2017, exposes serious deficiencies, raising concerns about accountability and transparency within the institution.

The audit findings implicate the former management of the NHA, led by Acting Managing Director Prince Anything Wreh, who is now serving as the Executive Chairman of the Liberia Special Economic Zones Authority. Wreh was recently appointed to this role by President Joseph Nyuma Boakai, who has been vocal about combating corruption, stating that there would be “no business as usual” under his administration. The timing of Wreh’s appointment has amplified the significance of the audit’s revelations, sparking public concern.

The GAC audit outlined multiple discrepancies in the NHA’s financial statements, as well as administrative shortcomings. One of the most glaring issues highlighted was the inconsistency between financial statements and accompanying notes. For instance, capital expenditures were reported as US $3,480,000 on the financial statements but only US $108,000 in the accompanying notes, a significant and unexplained discrepancy.

The report also found unexplained changes between budgetary figures and actual spending, including a variance of US $1,758,000 in authorized appropriations without proper validation. Additionally, there were concerns about revenue misreporting, with transactions worth US $672,904 and L$2,728,289.40 unsupported by adequate records, such as receipts or deposit slips.

“The discrepancies we found point to a significant lack of oversight and proper financial management,” the GAC report stated. “Without sufficient explanation for these variances, it raises serious questions about the integrity of financial practices at the NHA during the period in question,” the report added.

Another critical issue identified was the failure to remit unspent closing cash balances to the government’s Consolidated Account, as required by the Public Finance Management (PFM) Act of 2009. The audit indicated that these funds were instead misapplied.

The audit further exposed a range of administrative concerns, including poor documentation practices, inadequate internal controls, and weaknesses in the management of fixed assets. The absence of a functional procurement or audit committee was also noted, increasing the risk of unauthorized transactions and non-compliance.

Other significant findings involved unsupported revenue generation, the failure to remit national social security contributions, and a lack of a cash book or general ledger for the assessed fiscal year. The NHA’s failure to perform bank reconciliations resulted in a considerable variance of more than $6 million between reported cash outflows and actual figures.

“Management is advised to establish proper oversight committees and ensure documentation is thorough and accurate,” the report recommended. “A robust asset management policy must be implemented to prevent potential asset misappropriation,” the audit report concluded.

The revelations have prompted calls for accountability, especially in light of Wreh’s current high-profile government position. Many are now questioning the decision to appoint him despite his previous tenure at the NHA being marred by these allegations.

There has been no official comment from Wreh or the current NHA administration regarding the findings of the GAC audit report.

 

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