–State Auditor Says Social Security Agency’s 2022–23 Accounts Breach IFRS, Show Unrecorded Guesthouse Revenues, and More Than US$3.9M in Disbursements without Adequate Documentation
MONROVIA — Liberia’s General Auditing Commission (GAC) has raised sweeping red flags over the National Social Security & Welfare Corporation (NASSCORP), citing unpaid taxes, weak internal controls, and incomplete financial reporting standards across the agency’s 2022 and 2023 accounts.
The audit—signed off under Auditor General P. Gaswa Jackson—says NASSCORP, led by Director General Dewitt vonBallmoos, failed to prepare its financial statements in line with International Financial Reporting Standards (IFRS), despite hiring Deon & Leon International to steer the conversion. Management had previously committed to complete the transition by 2024; it now targets the second quarter of 2025.
Beyond compliance gaps, auditors say the agency’s books contain misclassifications and poor documentation. Petty cash and other expenses totaling about US$10,362 were posted to unrelated budget lines. More starkly, the GAC found that revenues from NASSCORP’s Kakata Guest House—US$41,558.95 in 2022 and US$45,675 in 2023—were collected “without invoices, bills, or receipts,” while guesthouse spending was reportedly approved verbally with no supporting records.
“The completeness and accuracy of revenue and expenditures may not be assured; therefore, the financial statements may be misstated,” the report warned.
Unsupported Spending Tops US$3.9M
The GAC flagged US$1,199,632.09 in 2022 and US$2,730,164.92 in 2023—more than US$3.9 million combined—in payments made without adequate documentation. NASSCORP later produced some vouchers and invoices, but auditors said the late submissions undermined accountability and reflected weak financial discipline.
NASSCORP acknowledged that its reports are not yet IFRS-compliant and said it is developing an electronic document management system to strengthen record-keeping. The Auditor General, however, said the responses “did not adequately address the issues raised.”
Tax Breaches and Arrears
The audit also cites violations of Liberia’s Revenue Code. According to the GAC, NASSCORP did not withhold and remit Goods and Services Tax (GST) on purchases totaling US$144,385.15 and withheld an additional US$1,199,890.05 from suppliers without evidence of remittance to the Liberia Revenue Authority (LRA).
“Failure to withhold and remit GST may deny the Government of Liberia the much-needed tax revenue,” the report noted, adding that such lapses attract penalties under Section 52 of the code.
Separately, the LRA assessed NASSCORP US$1,874,775.27 for salaries and rent taxes withheld between January 2018 and October 2022. Only US$200,000 has been paid. Management told auditors it is negotiating a revised plan that would reduce the outstanding balance to US$74,614.20, but the GAC said key GST issues remain unresolved and existing payment schedules have not been honored.
Why It Matters
NASSCORP manages pension and social security contributions for tens of thousands of workers. Auditors and governance advocates say persistent lapses—unrecorded revenues, undocumented payments, and tax noncompliance—not only erode public trust but also deprive the government of critical revenues and expose the institution to penalties, legal challenges, and reputational damage.
The report’s critique echoes concerns raised in other recent GAC audits of state-owned entities, including the Liberia Electricity Corporation, about systemic weaknesses in financial governance and oversight.
What NASSCORP Must Do
The GAC urged NASSCORP to fully account for all unsupported expenditures, complete its IFRS conversion, automate billing and documentation systems, and enforce strict compliance with the Public Financial Management Act and the Revenue Code of Liberia.
Public reaction has been mixed. Some citizens decried what they see as persistent corruption in government and state-owned enterprises—where “millions” allegedly disappear “into thin air”—while others dismissed the audit as politically motivated. What is clear, the report suggests, is that without rapid corrective action and credible accountability, the burden falls on Liberian workers and retirees whose contributions fund the system.
The GAC’s findings now place pressure on NASSCORP’s management and board to publish a remediation plan with timelines, reconcile tax arrears with the LRA, and demonstrate progress on IFRS compliance and internal controls—or face potential sanctions under law.
