General Auditing Commission: GAC Audit Clears STAR-P Assets in Liberia

• The GAC audit flagged over $104,900 worth of assets as un-coded or unverified.
• An independent field verification established that these assets are physically present at beneficiary sites in three counties.
• The breach has been reclassified from criminal diversion to a documented failure of asset management and audit readiness.
• Proper asset management and coding are essential for transparency and accountability in project asset management.
• Liberian law considers the failure to properly manage and code assets as a breach of asset management policy.

The verification does not nullify the GAC Management Letter for the period ended October 31, 2025, but it does change the legal and public character of the breach from criminal diversion to a documented failure of asset management and audit readiness.

A recent audit by the General Auditing Commission (GAC) of the Smallholder Agriculture Transformation and Agribusiness Revitalization Project (STAR-P) in Liberia flagged over $104,900 worth of assets as un-coded or unverified. However, an independent field verification has established that these assets are physically present at beneficiary sites in three counties: Grand Bassa, Cape Mount, and Lofa. The verification does not nullify the GAC Management Letter for the period ended October 31, 2025, but it does change the legal and public character of the breach from criminal diversion to a documented failure of asset management and audit readiness.

The STAR-P project is a $55 million World Bank IDA-financed initiative implemented by the Ministry of Agriculture through its Project Implementation Unit (PIU). The project's Component 3 finances private agribusinesses and farmer cooperatives through the Liberia Agriculture Commercialization Fund (LACF) on a matching-grant basis. Under Liberian law, the failure to properly manage and code assets is considered a breach of asset management policy and can result in documented PFM violations. The GAC Management Letter for the period ended October 31, 2025, remains a legally valid record of what auditors observed at the time of their visit.

This development highlights the importance of proper asset management and audit readiness for project implementers in Liberia. A failure to do so can result in documented breaches under Liberian law, as seen in this case. Lawyers advising clients on projects similar to STAR-P should ensure that their clients are complying with relevant regulations to avoid such consequences. Proper asset management and coding are essential for transparency and accountability in the management of project assets.

This development highlights the importance of proper asset management and audit readiness for project implementers in Liberia, as a failure to do so can result in documented breaches under Liberian law. Lawyers advising clients on projects similar to STAR-P should ensure that their clients are complying with relevant regulations.

Source: Original reporting via Liberian media outlets