-Hope that amendment to 2018/2019 budget law will bring accountability to CSDF
By Mafanta Kromah, mafanta.kromah@gmail.co
Amendments in the 2018/2019 Budget Law is expected to give citizens more control to monitor projects and ensure expenditures of their County Social Development Fund (CSDF).
The Natural Resource Management coalition submitted 17 proposed amendments designed to limit the influence of the Legislature in the management of the CSDF, which are in line with the Public Financial Management (PFM) law and general accounting principles in Liberia.
A coalition of eight civil society organizations working with USAID LAVI (Liberia Accountability Voice Initiative) persuaded the 54th Legislature to institute five key changes to the 2018-2019 Budget Law that increases citizen participation and ensures more transparency and accountability in the management of the County and Social Development Fund (CSDF).
The coalition came up with the proposed amendments after spending a year engaging citizens around the country about the challenges of measuring the impact of the CSDF.
Mr. Mahamed Boakai, Senior Partnership Advocacy Advisor for USAID LAVI, said the changes were aimed at giving citizens more leverage in the decision-making process of the CSDF.
“This will give citizens the power and mandate to decide what they want and how they want the county social development fund to be used,” he said.
Historically, the government allocated $200,000 to each of the 15 counties for development. In the 2018-2019 budget, the government allocated $175,000 for each of the 15 counties.
Mr Mohammed Boakai of LAVI
In addition, five counties receive additional funds based on the concessions operating in their areas. Those counties include Bong, Nimba, Grand Bassa, Sinoe and Margibi receive extra money because of the operations of Acelor Mittal, Golden Veroleum and Firestone, respectively.
Recently, the coalition brought together about 60 stakeholders comprising legislators, civil society organizations, local government officials and the media to a policy dialogue at a local hotel in Monrovia to discuss the new law and its impact for communities and the challenges facing the CSDF.
Under the new law, withdrawals from the CSDF account must be done in accordance with the Public Financial Management (PFM) law and all general accounting principles. Previously, withdrawals required two principal signatories or their representatives in accordance with guidelines set by the legislative and executive branches of government.
In the previous law, the minister of Finance Development and Planning (MFDP) was authorized to issue allotment based on the resolution of each county council against the amount appropriated in the budget for CSDF for each county.
The money will be issued after a full accounting of previous amounts have been made consistent with the Public Procurement and Concessions Commission and PFM law, according to the new law.
The MFDP minister ‘shall not make the payment to a county unless previous disbursements have been fully accounted for and financial reports duly made and certified by the County Legislative Caucus.’’
The change creates a system of check and balance that discourages unilateral actions by the minister and enhances the swift disbursement of funds in accordance with the PFM law, according to the coalition’s document on the changes.
The third amendment requires the election of a 5-member Project Management Committee (PMC), once every three years. The members must comprise a treasurer and a comptroller. The council must decide the criteria for qualifications based on professional training and work experience in accounting.
The project chair must have a minimum of three years’ experience in project management and must have resided in the county before taking the position or be willing to relocate to the county. This is intended to guard against having the PMC members living outside of the county, making them unable to provide oversight.
The previous law required the election of a three-member PMC team once every three years. The new law would create more checks and balance on the three PMC leaders and promote competence in terms of electing a chair rather appointing someone with political influence. Previously, PMC members were appointed based on political interest.
The new law also requires that only 10 percent of the CSDF allocation is spent on PMC’s operations. The idea is to spend more on projects that will benefit the community instead of on administration.
Under the new law, the removal of PMC members requires two-third of the county council. The previous law stated that the PMC members shall be removed for cause to be determined by the Legislative Caucus. Under the new law, the PMC members are more independent in the discharge of their duties.
The processing of budgetary allocations and all documents to citizens and other relevant entities must follow the PPCC and PFM regulations, according to the new law.
The Project Management Team which serves as the monitoring and evaluation arm of the targeted areas must provide a progress report to the citizens of their respective areas and to the PMC, a process that will result in timely payment for contractors.
Previously, there was no accountability and citizens did not have any information about CSDF implementation.
“Those laws accepted are key milestone that gives leverage to the people at the county level to be involve in the management of the CSDF,” Boakai said.
The new law also changes the rules regarding county council sitting where decisions of CSDF projects are determined. Previously, there was no publicity about the county sitting.
Project decisions were made by the County Legislative Caucus, the superintendent and other district, traditional and municipal delegates handpicked by politicians.
Under the new law, the superintendent must ensure that ‘extensive publicity, through all media platforms—radio and TV; print and social media—is given to the sitting to encourage maximum participation. The attendance at county sitting must include equal number of officials and opinion leaders from each of the traditional communities, statutory districts, and administrative districts.
“In the past, we realized that the lawmakers in some counties will call for county sitting, cook enough food, buy enough drinks and while the caterer is cooking, the participants will be drinking,’’ Boakai said. ‘’When they are done, they will be given food and sitting fees will be distributed, but there will be nothing discussed among them. In the end, the lawmakers will come out will their resolution that work in their own interest.’’
The goal is to ensure that the county sitting is inclusive and broader in terms of delegates’ selection and representation, void of legislative influence.
The new law gives civil society organizations a more active role in monitoring the role of the county sitting and ensure that projects are implemented. CSOs must cover the cost of the monitoring.
Boakai said legislative approval of the five amendments is a major win for the coalition. The ultimate goal, he said, is to have a standalone bill that would take control of the CSDF from the hands of the Legislature and put it in the hands of citizens.
“If you are passing a law to include citizens in the management of the CSDF, a key aspect of that law should include the chairmanship of the agenda setting for development of the county,’’ Boakai said. “If the chairmanship is presided over by the county superintendent or local official of the county, that shows that the development agenda is in no way being control by the people at the local level, but by the legislature.”
Margibi County’s Rep. Clarence Gahr, (District 5, Coalition for Democratic Change, CDC), said the Legislature approved the five changes because they were in the best interest of citizens.
Gahr said there has been a lot of problems with the management of the CSDF over the years. Margibi, he said, has not had a County Council Sitting for years, but the county has used CSDF to fund projects.
“Nobody can tell you on what basis those decisions were made,’’ said Gahr, who was elected during the 2017 elections.
District development councils comprising elders, women, youth, traditional and religious leaders should be reactivated in each county to identify the communities’ needs and select projects to address those needs, he said.
Gahr said he plans to reactivate the district development council in his district.
‘’Our work begins when the citizens we represent complain,’’ he said. ‘’It is not possible to work in the district without having a formal discussion with the citizens.’’
“The changes to the law governing the CSDF empowers and gives citizens a voice in the management of public funds,” he said. In addition, counties are required to account for previous funds before they can receive new money.
The new law, he said, brings transparency, especially in terms of requiring counties to account for previous funds before receiving new funds.
‘‘To have proper accountability of public funds, the public should have full participation,’’ he said. ‘The power should be given to the people because we work at their will and pleasure.’’
Too often, Gahr said, citizens complain that they don’t have information about how CSDF is benefitting their community. The new law requires that citizens must receive project updates. Citizens, he said, now have the power to “hold our feet to the ground, to make us accountable to them.’’
‘We put these laws in place, we cannot go against them,’’ he said. ‘We want our people to be more relaxed and confident with the job we do. That’s why we gave the power back to them. If these laws are in place, we are the deputy of the people. If the money is not used the right way, the citizens come back to us.”
The push for the change in the CSDF law stems from the fact that citizens in rural areas had limited role in the management and implementation of the funds after the social development and county development funds were merged in 2008, said Aaron Weah Weah, program director of the National Youth Movement for Transparent Elections (NAYMOTE), one of the eight coalition partners.
The lack of citizen participation resulted in the mismanaged of funds and abandoned projects, he said.
“In past time, we realized that it was an open secret that our lawmakers had direct influence on those who attended county sitting, thereby determining projects that did not represent the needs and aspirations of those districts constituents which they represented,” Weah Weah said.
Coalition members will soon began traveling around the country to educate citizens about the new law and their role in implementing it.
“Our goal is to ensure that the CSDF is used for the intended purposes and that lawmakers will not be the ones to implement projects, ‘’ he said. ‘’They cannot serve as the referee and players at the same time in a game.’’
The new law also requires that the county council sitting be held during the legislative, but a few counties—Nimba, Grand Gedeh and Rivergee have already had county sittings. Legislators are expected to go on break in October.
Rivergee had its county sitting from Aug. 28 to Sept. 1, said Superintendent Philip Nyenuh.
For the first time, CSOs were on hand to monitor the process, he said. Before, CSOs had no voice in the county sitting, he said.
During the county sitting, the attendees agreed to complete the unfinished projects such as the Fish Town Executive Guest House, district town halls and the Commissioner’s Compound.
“We identified all the projects that were constructed but yet not completed, and we agreed that whatever resources that will be made available by the central government, we will be used to finish those projects rather than starting new ones,” he said.