Liberian NewsUncategorised

New Budget Law seeks to keep Concession Fees in Local Communities

(Last Updated On: October 21, 2019)

The Natural Resources Management (NRM) coalition supported by USAID Liberia Accountability Voice Initiative (LAVI) brought superintendents, civil society organizations and project coordinators from Liberia’s 15 counties in  Buchanan  to educate them about the new budget law governing  the County and Social Development Fund (CSDF).

About 80 people gathered at the Buchanan City Hall for a two-day workshop to learn about Section 10 of the 2019-2020 Budget Law, standard operating procedures for the County Sitting.

A LAVI press release says they also learned, how to monitor the County Sitting where CSDF projects are identified  and get updated on the progress being made to pass the stand-alone CSDF law.

The training was held from Oct. 18 and 19, 2019.

One of the training sessions in Buchanan

The 2019-2020 Budget law includes many of the propositions in the CSDF bill such as the creation of  an escrow account at local banks, so that the communities can have more control over the fees paid by concession companies for operating in the county; the three-member Project Management Committee (PMC) must be elected every three years; women must make up 25 percent of delegates to the County Sitting; Civil Society Organizations must monitor the County Sitting; Removal of the PMC requires a simple majority of County Sitting delegates; counties must submit financial report on how they spent previous funds; and legislators will preside over County Sitting, but not have voting rights.

The  NRM, a coalition of eight civil society organizations, has been working on CSDF reform since 2016. In the last three years, the coalition  engaged legislators and citizens in Liberia’s 15 counties on the impact and challenges of the CSDF.

During the engagements, citizens pushed for greater participation on the development of projects and more transparency and accountability.

In response to the citizens’ concerns, the  Legislature  amended the 2018-2019 and 2019-2020 National Budget  Law and promised to continue working on the proposed stand-alone CSDF bill.

Eight legislators including Deputy Speaker Prince Moye, District 2,  of Bong County, Representative Larry Younquoi,  of District 8, NImba County and Francis Dopoh, District 3, Rivergee County, attended the event. All expressed optimism that the standalone bill will be passed.

Moye thanked USAID LAVI and the NRM coalition for leading the CSDF reform effort and pledged his support for the stand-alone bill.


“When the CSDF is properly utilized, it benefits us because our citizens will receive the social benefit,’’ Moye said.

Rep. Younquoi, the bill’s sponsor, said the amendments to the 2018-2019 and 2019-2020 Budget laws are a strong indication that there is political will to pass the stand-alone CSDF bill.

The creation of an escrow account will ensure that  fees paid by concession  companies   stay in the counties, instead of in the coffers of the central government, he said.

“We are developing political will,’’ he said.

Younquoi informed the gathering that Acellor Mittal recently told  the Executive Branch that starting January, it will pay the 20 percent social development fees to the counties it operates in, not the central government.

 Younquoi said the Legislative caucuses of Bong, Nimba and  Grand Bassa counties endorsed Acellor Mittal’s plan.

He said the company’s decision is partly the result of the NRM’s engagement with legislators and citizens around the country on CSDF reform.

“The different talk shows and other engagements enlightened citizens about what they are entitled to, so they are putting pressure on these companies,’’ Younquoi said. “Acellor Mittal has been paying the fees to government, but the money is not reaching the communities.‘’

Rep. Dopoh said the training provided an opportunity to educate local officials and CSOs about the new law and the efforts being made to pass the standalone law.

“This has been an eyeopener,’’ he said. “When laws are being made, it’s a give and take. This process showed that there is a need for coordination across the board.’’

Augustus Zayzay, USAID LAVI’s NRM Specialist, said the  workshop was designed to prepare local officials and CSOs for the March 2020 County Sitting, mobilize more community support for the standalone CSDF law and educate them about the new budget law.

“The new budget law reflects the hopes and aspirations of the Liberian people,’’ he said. “We are here to ensure a change in the CSDF law. We want to ensure value for money and increase citizen participation. This entire framework supports decentralization which is taking power from government to citizens.’’

The participants said the workshop increased their understanding of the CSDF reform. They said they were glad to hear the legislators commit to passing a CSDF law.

Samuel Outland, Rivercess County coordinator of the National Union of the Disabled, said he supports the creation of the escrow account and the provision for CSOs to monitor the County Sitting.

“We will be better prepared for the next County Sitting, ‘’ he said. “In the past, citizens were not involved that’s why so many CSDF projects failed or didn’t really benefit the people.’’

Superintendent Esther Walker of Bong County said local officials now have a better understanding of the budget law and how they should use it to plan for the County Sitting.

“We need transparency with the CSDF, so that it can benefit citizens,’’ she said.

USAID’s Director Sara Walters said she is pleased with the progress that Liberia has made in reforming the CSDF process.  She told the participants that thei

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