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Finance

MoF Begins Payment of Domestic Debt

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The New Dawn Liberia The New Dawn LiberiaThe Ministry of Finance in a press release on Tuesday, announced that it will this week begin the payment of domestic debts to local vendors and the payment of salary arrears to officers and enlisted men of the former Armed Forces of Liberia.

 

“Payment to claimants of valid domestic debt in class 5 will begin on Thursday July 22, 2010.” The release stipulates. According to the Ministry of Finance, category five covers domestic debt claimants between 50 and 95 thousand United States dollars.

A statement from the Media Services Unit of the Ministry said the decision to pay domestic debt at this time is in fulfillment of government’s promise to settle domestic obligation in a timely manner and in accordance with the Domestic Debt Resolution Strategy adopted in 2008.

In the press release, the Finance Ministry calls on all domestic debt holders that were validated in Class 5 to present valid government issued identification, proof of ownership of claim and power of attorney if applicable.

“In spite of the continuing fiscal constraints, the Government of Liberia has already settled domestic arrears for people in categories 1 to 4.” The release stipulates.

In a related development, the Ministry of Finance has also released information about the payment of two months’ salary arrears to officers and enlisted men of the former Armed Forces of Liberia across the country, beginning Wednesday July 21, 2010.

“This will be the final payment to officers of the former AFL while two months of arrears owed the enlisted men will be settled during the budget year.” The Ministry said.

Meanwhile, the Ministry of Finance has announced in the same press release that the Department of Expenditure of the Ministry will also this Thursday begin the disbursement of regular civil servants salary for the month of July through the various commercial banks.

The decision to pay civil servants in the absence of the passage into law of the national Budget according to the Ministry is in line with the Public Financial management Act of 2009. Section 17 of the PFM Act under the subtitle Temporary Financing of the Budget and Adoption of the Budget authorizes the Minister of Finance to carry out such act.

The section states that “in case where the legislature is unable to adopt the national Budget before the start of the fiscal year, the Minister of Finance is authorized to collect revenues and approve expenditures of, in line with the proposed budget, up to one-twelfth of the budget of the previous year.

The Ministry of Finance assures in the press release that it will continue to act in line with the financial laws of Liberia to meet the needs of the people.

“The ministry of Finance and the entire staff of the ministry want to wish all Liberians a Happy July 26 Independence Day celebration.” The release concludes.

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