Issues Statement: “Response to the World Bank Letter in Circulation”
Days after the National Fisheries and Aquaculture Authority (NaFAA) denied receiving a critical letter from the World Bank Liberia Country office critical of the way funds are being managed, NaFAA has finally acknowledged receiving the letter that leaked in the media.
“This letter serves as a formal expression of our concern with the report’s content. The document contains factual inaccuracies and weighty allegations that fundamentally mischaracterize the role, priorities, and actions of the World Bank. The report also misrepresents the nature of the World Bank’s working relationship with the LSMFP Project Implementation Unit (PIU) and refers to reallocations under the Project for which no formal requests have been received,” says the letter from the head of the Bank’s County office in Liberia.
But the office of the NaFAA Director General initially played down the letter in question which has been published by several local newspapers and media outlets, denying ever receiving such communication from the World Bank.
“The management of the National Fisheries and Aquaculture Authority, NaFAA says it has not received any communication from the World Bank that is now circulating in the media,” said a one-sentence statement from NaFAA in response to queries from this news outlet on August 21, 2024. HOT LETTER IN CIRCULATION: World Bank Raised Concerns About Accountability At NaFAA, But NaFAA Denies Receiving It – News Public Trust
But over the weekend, NaFAA management issued a detailed statement on the situation with the World Bank.
BELOW IS FULL TEXT OF NAFAA’S PRESS STATEMENT:
The National Fisheries and Aquaculture Authority (NaFAA) wishes to clarify the recent World Bank letter dated August 16, 2024, which claims that no official request for the restructuring of the $40 million Fisheries Project was submitted by the Government of Liberia. In reality, the Ministry of Finance and Development Planning (MFDP) submitted a restructuring request on September 12, 2022, to the then-World Bank Country Manager for Liberia, Mr. Khwima Nthara, for further submission and approval by the World Bank’s Board of Directors.
Following this request, the World Bank’s previous Technical Team developed and approved a work plan and budget. This budget pertained specifically to Component 1 of the project: Improving Management and Governance of Fisheries, particularly sub-component 1.1, which focuses on institutional strengthening and capacity building. These activities included purchasing vehicles and generators to enhance project implementation in rural Liberia and support NaFAA’s data collection efforts. Notably, this allocation represents only 2% of the total $40 million project budget, with compensation for the project coordinator accounting for just 1.3%. This was with the expectation that the World Bank Board would approve the restructuring for the Fiscal Year 2021/2022, even as the World Bank Country Team was transitioning to a new team.
Attached are documents providing evidence of no objections, annual work plans, the approved annual budget by the World Bank team, and the formal request from the Government of Liberia via the MFDP.
Additionally, the Ministry of Finance and Development Planning, which oversees the Project Financial Management Unit (PFMU), can confirm that no disbursements were made without prior “no objection” from the World Bank. The World Bank authorizes all project disbursements in accordance with Component 4 of the Project Implementation Manual (PIM), which outlines the following process:
The Project Implementation Unit (PIU) reviews and provides feedback on draft plans until they are finalized and agreed upon by the implementing departments.
The finalized and consolidated Annual Work Plan Budget (AWPB) and Procurement Plan (PP) are discussed with the World Bank for an initial review to confirm eligibility for project funding.
-The reviewed and consolidated AWPB and PP, including initial World Bank feedback, are submitted to the National Project Steering Committee (NPSC) for approval.
-The Project Coordinator then submits the cleared AWPB and PP package for ‘no objection’ through the Task Team Leader (TTL) to the World Bank.
-Upon receiving the Bank’s No Objection, payments are authorized through the PFMU at the Ministry of Finance and Development Planning (MFDP).
NaFAA reiterates that all project implementation decisions were made in consultation with the World Bank Team.
Signed:…………………………………………………….
Lewis E.B Konoe
Director
Communications and Media Services
National Fisheries and Aquaculture Authority
NaFAA
231-770039589 (WhatsApp Number)
231-888631529 (Phone Number)