By Bill W. Cooper
Finance and Development Planning Minister Augustine Ngafuan has announced the cancellation of US$51 million in the United States Agency for International Development (USAID)-funded projects aimed at supporting development in Liberia.
The Minister then called on religious leaders, including the Muslim community, at their various places of worship to pray that all USAID projects remain active in the country.
The decision, which is affecting critical sectors including health, education, elections, agriculture and domestic revenue mobilization among others, comes amid ongoing budgetary constraints and a reassessment of priorities within the government.
Minister Ngafuan, at the same time, emphasized the need for a more effective allocation of resources, stating that the funds would be redirected to critical sectors such as education, agriculture and healthcare, among others.
Remarking before the Liberian Senate Ad Hoc Committee investigating the freeze of USAID funds to Liberia yesterday, Ngafuan narrated that the number of affected projects has grown, thus confirming three more cancellations during the hearing.
According to him, the situation is increasing rapidly, with ongoing assessments of the implications, raising concerns among the citizenry, beneficiaries and those who were benefiting and were set to benefit from the projects across Liberia.
Those projects affected are the Architecture, Engineering, and Construction Oversight Services for Water and Health Infrastructure, valued at US$2.9 million, and a Community-Led Monitoring Project, worth US$185,000, which was being implemented through an NGO.
A Data Evaluation, Learning, and Technical Assistance (DELTA) Project, designed to improve monitoring and evaluation at the Ministry of Finance, costing US$19 million, has also been canceled.
Also, one of the largest affected programs is the Education System Strengthening Project, valued at US$23.4 million, which aimed to enhance Liberia’s educational sector, while other projects on the list include Elections and Democracy costing US$15.9 million.
The Local Empowerment for Accountability and Decentralization (LEAD) at US$17.9 million was also affected by the freezing of the USAID aid to Liberia, a country still struggling from the scars of 14 years of civil unrest.
Minister Ngafuan further disclosed that the Liberia Revenue Authority (LRA) was the key beneficiary of the LEAD project, which was instrumental in transitioning Liberia’s tax system from Goods and Services Tax (GST) to Value Added Tax (VAT).
The Minister further indicated that USAID was a lead partner in this effort, providing training, technical assistance, and investments in systems, lamenting that the cancellation of this project is a big blow to government revenue mobilization.
He emphasized that the freeze could have a serious impact on the government’s US$1 billion domestic revenue target, and maintained, “The LRA is migrating to a new tax regime, and this project was essential in domestic resource mobilization.”
Minister Ngafuan revealed that the new cancellations include a US$11 million media activity fund that covered immunization and COVID-19 awareness, a US$20 million school feeding program, and another US$20 million allocated for food security under the Ministry of Agriculture.
The Minister asserted that the school feeding initiative, implemented by NGOs such as Mary’s Meals and Mercy Corps, was expected to provide crucial nutritional support to students across the country.
Ngafuan, however, acknowledged that while some projects remain unaffected, uncertainty looms, adding, “People are spending longer hours in prayer rooms because no one knows which project could be canceled next.”
He also acknowledged the concerns over job security for professionals working on these projects, with local and international NGOs voicing apprehension over potential layoffs, but assured the government’s commitment to address the issues soon.
Meanwhile, the Senate Ad Hoc Committee is expected to continue its probe into the implications of the fund freeze, while the government said it is engaging with the US Embassy in Monrovia and the Liberia Embassy in the US to find solutions on the future of these programs.
