Liberia: Capitol Chaos

Capitol Building was a chaotic scene on Monday, December 9, as tension erupted among lawmakers as a dispute emerged over the review of the draft 2025 National Budget.

Led by the members of the Majority Bloc, the commencement of the budget hearing process, which was opposed by members of Speaker J. Fonati Koffa's faction, led to a physical altercation between members of both factions. This incident, marked by shoving and shouting, showcased the heightened political climate within the legislature. Later, a tense clash ensued between police officers and lawmakers, especially those from the Koffa's faction-with reports of serious injuries-a situation that has further deepened the political turmoil in the country.

Chaos erupted when members of the Majority Bloc began the budget hearings process arnid ongoing leadership crisis but ernbattled Speaker Koffa expresses extrerne disappointrnent over officials' the executive appearance.

Appearing before the Majority Bloc faction of the House, Acting Minister of Finance and Development Planning (MFDP), Tanneh G. Brunson, urged the House of Representatives to expedite their review of the proposed budget. She emphasized the importance of the budget in advancing the nation's development.

President Joseph Nyumah Boakai On November 18, submitted the proposed National Budget for FY2025 to the 55th Legislature, as required by Section 17.1 of the Amended and Restated Public Financial Management Act of 2009.

Minister Brunson expressed her satisfaction in representing Finance Minister Augustine Kpehe Ngafuan and continuing discussions on the fiscal year 2025 proposed budget. She highlighted the government's focus on aligning the budget with the ARREST Agenda for Inclusive Development (AAID).

The Draft FY2025 budget priorities include ensuring the full payment of both domestic and external debts to maintain Liberia's financial credibility, addressing compensation and related issues with national stakeholders to improve public services, making strategic capital investments in agriculture, infrastructure, social services such as water, sanitation, healthcare, and education, efficiently allocating resources to foster economic and sustainable growth, developing human capacity, continuing and supporting projects aligned with the AAID, and initiating new ventures that align with national priorities.

The total resource envelope for FY2025 is estimated at US$851.76 million, a 15.3% increase compared to the FY2024 approved recast budget of US$738.86 million. Domestic revenue is projected to be US$759.20 million, with US$650.80 million (76.4%) coming from U.S. dollars and LRD39.9 billion (23.6%) in Liberian dollars.

Key revenue sources include taxes on income and profits, international trade, goods and services, and real property, with additional resources from non-tax revenue and external contributions from entities such as the World Bank and the European Union.

On the expenditure side, the government is forecasting US$745.69 million for recurrent spending, a 10% increase from FY2024. The majority of the budget (42.3%) will be allocated to employee compensation, including pay increases for social and security sector workers, as well as additional hires in the healthcare and education sectors.

Also appearing before the Houses Committee on Ways, Means, Finance & Budget today, Deputy Commissioner General for Technical Services at the Liberia Revenue Authority (LRA), Gabriel Yeegai Montgomery, underscored that the agency's achievements in revenue mobilization are already on target.

He disclosed that despite some challenges, the LRA has collected US$619.9 million as of November 30, 2024, reaching 84% of its target. For FY2025, the LRA aims to raise US$851.8 million, marking a 15.3% increase over the current fiscal year.

To support this, the Commissioner called for an amendment to the LRA Act, allowing the agency to retain a portion of the revenue it collects, which would help enhance its capacity to innovate and digitize revenue collection processes.

Deputy LRA Commissioner General Montgomery also highlighted the passage of the Value-Added Tax (VAT) Law in April 2024, which replaces the outdated Goods and Services Tax system.

The VAT implementation is scheduled for 2026, with public engagement and capacity-building initiatives planned. Additionally, he mentioned that efforts to reform the real property tax system have made progress, with the LRA capturing more properties and partnering with the Ministry of Post and Telecommunications to establish a National Postal Addressing System.

Further advancements, he noted, include the successful rollout of the Liberia Integrated Tax Administration System (LITAS), which allows for online tax registration, filing, and payments, and the

Earlier, the controversial 'new speaker' elected by majority members of the House, Richard Koon, said the current composition of the House will ensure transparency and accountability in the current scrutiny of the Draft 2025 National Budget.

According to Rep. Koon, due diligence and proper scrutiny will be given to the draft budget to meet the demands of Liberians.

Meanwhile, embattled House Speaker Fonati Koffa expressed utter disappointment in the executive for allegedly being a party to the ongoing saga at the House of Representatives.

The House of Representatives has been engulfed into a serious leadership crisis with majority members electing Montserrado County Representative Richard Koon as Speaker; a decision Koffa has since resisted. The 1986 Constitution of Liberia requires that a duly elected Speaker may only be removed by a two-thirds majority of the House of Representatives, which Koffa contends has not been met, rendering Koon an illegal speaker.

Executive Complicating House's Crisis

House Speaker J. Fonati Koffa has criticized officials from the Executive for exacerbating what he referred to as a "treasonous plot" amid ongoing tensions at the Capitol Building. In a statement to the press, Speaker Koffa expressed serious reservations about the heightened police presence at the Capitol, interpreting it as a possible indication of collaboration between certain lawmakers, particularly the "absentee majority," and the executive branch to undermine legal procedures.

"It is evident that the police are entangled in this crisis, which is deeply concerning," Koffa stated. "Nonetheless, we, as representatives of the people, will not succumb to intimidation from those attempting to stifle our voices."

Koffa highlighted the coincidental appearance of law enforcement at the Capitol whenever the so-called absentee majority, known for missing legislative sessions, were present. He insinuated that this pattern suggested a problematic alliance between the police and the executive branch to disrupt legislative functions.

"This situation is regrettable and not conducive to Liberia's democratic values. The presence of police officers should not be exploited for political purposes," Koffa emphasized. "We urge all parties to step back, uphold the rule of law, and abide by the Supreme Court's directives."

The Speaker issued a stern warning to the executive branch, urging them to refrain from involvement in what he deemed a treasonous agenda.

"I have repeatedly emphasized to the executive that adherence to the rule of law is paramount. If there are uncertainties about legalities, they should seek clarification from the Supreme Court. It appears, however, that this guidance is being disregarded," he remarked.

Koffa criticized the alleged partiality of the police, accusing them of using excessive force against lawmakers and taking sides in the conflict. "While parliamentary disputes occur globally, resorting to tear gas and physical violence against legislators is uncommon.

Unfortunately, this is the scenario unfolding in Liberia," he commented. Reports indicated that Representative Luther Collins, a supporter of Koffa, sustained head injuries during the altercation and required medical attention. Koffa disclosed that he had also received threats on his life, prompting an investigation by national security agencies.

This article was originally published in the Daily Observer.