Liberia's Public Officials Salary Cut - Who Will the Feel Pinch:

Monrovia — When the Ellen Johnson-Sirleaf-led government assumed power in January 2006, a lot was made about officials returning from the Diaspora and other parts of the world making the ultimate sacrifices to return home and contribute to the resurgence of a post-war nation emerging from war.

In a bid to woo qualified Liberians both at home and abroad to lucrative but important positions, the government and some international partners came up with multiple proposals aimed at making offers to potential appointees appealing. Thus, many were paid between US$10,000 to $US15, 000 and appointed to boards of several public corporations with board fees in a bid to enhance the monetary package.

Part of the reasoning, some say was to deter government officials from engaging in corrupt officials while others expressed concerns that all hands were not equal when it came to the scale with some senior ministers reportedly making more money than others. Former Auditor General John S. Morlu for example was paid through an arrangement with the European Union. Similarly Former Finance Minister Antoinette Sayeh was paid through the World Bank. The European Union did not give any additional benefits to Morlu while Sayeh who was under a two-year contract departed after her package expired. Morlu however had a two-year package with an option to renew.

After the departure of Morlu, incoming auditor generals who only heard that Morlu was paid US$15,000 as Morlu salary could not be traced on government of Liberia payroll maintained the salary paid by the European Union. However, the burden was left with the government of Liberia to pay such huge amounts.

Amid the disparity, there were other ministers who did not have that arrangement but were supplemented through either the Senior Executive Services or the Token Program. Both the Token program and SES came about after some ministers raised concerns about the disparities to Cabinet. However, it was left to the discretion of the president to decide which ministers received supplement to their salaries.

Haphazard reform

Former Labour and Public Works Minister Atty. Samuel Kofi Woods who raised the issue of government officials serving on Board of Directors of entities receiving board fees and refused board fees while serving as Minister in government believes the pay adjustment is not fair and equitable. "I don't think the reform is equitable enough, it is not addressing the issues of fairness, equity and retributive justice", said Atty. Woods

Atty. Woods added that the process should be objective addressing and harmonizing compensation across the public sector. He said it is unacceptable to proceed without addressing the issue of statutory board members who will be receiving board fees in addition to their salaries.

"There was an Executive order 38 issued by the Government of Liberia asking all officials to declare their assets in fulfillment of article 90 of the constitution which is in line with the code of conduct. But here you have some officials of government serving as statutory Board members and receiving board fees in addition to their salaries, that is not fair", he added.

He said it is a violation of Article 90 of the constitution which is against officials receiving compensation more than once for performing functions for the government. "This is not a reform, it is harming the system, reform must be done properly and systematically to address issues in public service and distributive justice nationally", the former Minister said. Atty. Woods continued that the current pay reform is not far reaching and the country still has a lot of work to do in addressing compensation disparity.

"Compensation cannot be done in a haphazard manner; it is incomplete and not far reaching enough with the heart of fairness, justice, equity and retributive justice. These are totally out of step, it has to be done realistically and this disparity will lead to discontent", he furthered. He said the discontent will lead to poor service delivery in the government of Liberia and he is calling on the Liberia Anti-Corruption Commission to investigate and recover government money from officials who are in violation of Article 90 of the constitution.

2013 Scheme Doubled Salaries

In 2013, Cabinet endorsed a payment scheme that saw pay increases more than double their salaries at the time. At the time, the government explained that the move was aimed at a Civil Service reform intended to reduce government's recurrent cost.

Prior to that announcement, senior ministers earned a gross salary of US$2400, with a net pay of US$1800 after tax. This does not include their per-diems and other allowances and benefits. The 2013 scheme which took effect January 2014 saw senior cabinet ministers earning US$6,000 monthly, while their deputies and ambassadors earn US$4,500; and assistant ministers, US$3,000. Under that pay raise, officials were tasked with paying directly for their scratch cards, gas slips and vehicle repairs and maintenance.

The scheme was also explained at the time as a means of bringing to an end the disparities in the disbursements of general allowances and was reportedly tied to the scrupulous implementation of the performance contracts signed between political appointees and the President. In recent weeks, members of boards of public corporations have been formulating packages for retirement to the detriment of their respective agencies prompting President Sirleaf to order the nullification of these resolutions.

President Ellen Johnson Sirleaf recently called on the Board of Directors of both NOCAL and NPA to with immediate effect; nullify all resolutions passed approving excessive benefits for departing senior managers and board members. The Executive Mansion stated that the Liberian leader has already mandated the respective boards to scrupulously implement the decision.

The Board of Directors of the two companies passed resolutions granting huge benefits to retiring members when these two Boards have not been able to the help the entities make sound decisions. The NPA Board took part in approving an agreement that led to the entity paying more than US$800,000 to a bogus contractor while the NOCAL board could not help safe the entity from wasteful spending which has pushed the company into bankruptcy.

Recently Liberia Finance and Development Planning Minister Amara Konneh declared that the government of Liberia is spending bulk of the revenue generated about 60% on administration which includes salaries and other incentives to government employees. Minister Konneh speaking in the United States disclosed that under his watch as Minister, the Ministry has collected US$3.1 billion in revenue but 60% of this amount has been spent on government administration which represents just 40,000 people of the total population of Liberia.

Few months after the pronouncement by the Minister, President Ellen Johnson Sirleaf in a presidential directive issued June 29 ordered reduction in the income of government employees mainly from the top while at the same time mandating heads of ministries, agencies, autonomous Commissions to ensure appropriate adjustments at the lower level within their institutions.

As a follow-up to the presidential directive, Acting Minister of Finance and Development Planning, Mr. James F. Kollie in a memorandum issued to heads of agencies and other institutions under the Executive Branch of Government communicated the new measures. Minister Kollie indicated strict instructions to ensure that the spirit and intent of the memo are fully executed effective July 1, 2015.

Stated the memo from Acting Minister Kollie "According to the Presidential Directive, you are to ensure beginning July 2015 pay period that your gross monthly salary inclusive of all compensatory allowances shall not exceed US$7,000.00 and that of your deputy (ies) as the case may be, shall not exceed US$5,500.00. Based on the above, your management team should then institute broader pay adjustments to those of lower ranking within your organization".

Before the presidential directive, there was no coherence in salaries across government until the cabinet approved a salary structure in 2014 which did not affect autonomous commissions and other agencies of Government. The cabinet approved salary structure which took effect in January 2014 increased the salaries of senior ministers who earned gross salary of US$2400, with a net pay of US$1800 after tax. Under the new payment scheme which took effect January 2014, senior cabinet ministers have been earning US$6,000 monthly, while their deputies and ambassadors earn US$4,500; and assistant ministers, US$3,000.

Since January 2014, the cabinet approved salary meant all officials were to pay directly for their scratch cards, gas slips and vehicle repairs and maintenance but FPA gathered that in various ministries and agencies, gas slips are still being distributed amongst officials along with other incentives not approved by the cabinet. Heads of Commissions such as the Internal Audit Agency (IAA) Liberia Petroleum Refining Company (LPRC), General Auditing Commission (GAC) and others determined their own salaries without reference to any policies.

Who will feel the reduction?

The presidential directive will be a big dip in income for some autonomous commissions with high payroll where heads of these commissions are amongst the highest paid in Liberia. Some officials will have their salaries cut by more than 50% to fall in line with the directive that no official should have their gross monthly salary exceeding US$7,000.

Auditor General Yusador Gaye is paid more than US$17,000 in gross salary, gas slips, communication and other allowances and the new presidential directive which entails all incentives plus salaries summing up to US$7,000, mean the AG will have more than 50% cut. Her deputies are paid around US$9,000 and as per the new directive they are expected to earn around US$5,500 in salary, gas slips and phone cards.

The Internal Audit Agency is another institution with large payroll where the Director Paul Collins earns around US$9,000 with some Directors at the agency earning up to US$4,000, Deputy Directors earning US$3,500 and the new presidential directive will create a problem for the agency which offers a yearly renewable contract to workers.

As per the new directive, the Deputy of the IAA is expected to earn around US$3,500 far below the current earning of Directors at the agency. The agency which was created through the Public Financial management Act was established in December 2011 as the Internal Audit Secretariat mandated to submit its report to the Auditor General. The secretariat was later given an agency status after the Act was passed unanimously by both Houses of the Legislature and signed into law by the President of Liberia on September 13, 2013.

Since the entity gained agency status, has been carrying out its own recruitment and adopted the process of awarding renewable yearly contracts to workers, paying salaries far above other autonomic commissions and agencies of government. Entities such as the LPRC, NEC and others also pay high salaries and will be affected by the presidential directive.

Sacrificial lambs

Before the presidential directive many officials of government mainly those from aboard have continuously said that they are making sacrifices to Liberia by returning home from abroad to serve the country as a consequence of patriotism.

In spite of the lucrative salaries and other incentives, many of these officials have boasted of providing sacrificial services to Liberia and it remains to be seen how they will react to the salary cut, whether to continue making the sacrifice or quit. According to sources heads of some agencies such the GAC are already expressing anger over the salary cut measures. Some believe the salary cut if implemented will pave the way for corruption at many of these entities where officials will use other means to get income in order to cover up for the huge drop in salaries.

In the draft 2015/2016 national Budget the pending reduction in salaries and other incentives was not reflected as the line item with wages is not reduced at these entities, making some to believe that the presidential directive is just a mere pronouncement to convince the public that some form of action has been taken to reduce waste across government.

The presidential directive of pay cut is one of many directives from President Sirleaf some which are not implemented to the letter. It can be recalled; President Sirleaf fired 10 government officials for disobeying an order to return to the Ebola-stricken country after foreign trips, marking the second of such dismissal in less than a month in August, 2014.

The officials fired "showed insensitivity to our national tragedy and disregard for authority", a statement from the Executive Mansion dated September 13 stated. "Those who were out of the country without an excuse" had been told to return, the Executive Mansion stated. As a follow-up to the presidential directive, on August 26, President Sirleaf sacked several ministers and senior government workers traveling overseas who flouted an order to end their foreign trips.

Among the dismissed Liberian officials were Wheatonia Dixon-Barnes, Deputy Justice Minister for Administration and Public Safety; and Victoria Sherman-Lang, Deputy Justice Minister for Economic Affairs, according to the statement from the president's office. Eight junior officials were also out of the country and were told that they won't receive their pay until they return to Liberia.

They "will forfeit all compensation until they return home to join in the fight against the Ebola virus disease," the presidency said. A short while later, Deputy Minister Barnes returned to Liberia and took over her job despite the statement from the Executive Mansion announcing her dismissal.

Additionally acting on an investigation from the Liberia Anti-Corruption Commission President Sirleaf in July 2014 announced that several officials of government will forfeit salaries for one month for failing to declare or re-declare their assets with the LACC.

President Sirleaf was hailed for the pronouncement, but since that time there has been no public pronouncement of the implementation of the mandate. When quizzed, one of the individuals affected by the mandate refused to say whether he forfeited his one month salary based on the presidential mandate.