Ngafuan Recommends Revision of Salary Harmonization

Monrovia, Liberia -  Finance & Development Planning Minister Designate, Augustine Kpehe Ngafuan, has vowed to conduct a thorough review of the GOL Salary Harmonization Program.

Ngafuan told members of the Ways, Means, Finance, and Budget Committee during his confirmation hearing on Thursday, September 5, 2024, that there have been concerns about the implementation of the policy introduced by the previous administration.

The review, Ngafuan noted, will address stakeholder concerns and seek practical solutions, ensuring that government employees are fairly compensated while maintaining a sustainable wage structure.

He asserted, “I strongly believe that an appropriately incentivized and motivated government workforce is critical to government success.

We must strike the right balance between maintaining a sustainable public service wage bill and paying government employees decently.

” Touching on prudent debt management, Ngafuan disclosed that as of June 2024, Liberia's total debt is US$2.58 billion, with US$1.078 billion in domestic debt and US$1.50 billion in external debt.

The Finance & Development Planning Minister-Designate indicated that the debt-to-GDP ratio was 56.65%, placing the country at medium risk of debt distress.

He stressed that with increasing debt service obligations affecting fiscal resources, it is crucial to manage new debt responsibly. Ngafuan said he remains committed to ensuring that borrowing is undertaken for beneficial purposes and on favourable terms, adhering to principles of transparency and accountability.

The Minister-designate promised that debts owed ECOWAS, the World Bank, and other multilateral organizations will be paid in keeping with terms of responsible borrowing.

He wonders why the debts owed ECOWAS and Ivory Coast were not serviced as it was done throughout the Johnson-Sirleaf era. Ngafuan underscored,

“The ratio of total debt stock to GDP stood at 56.65 percent, which means that we are now labelled as a country with a medium risk of debt distress.

We are fast nearing the 60% threshold where we will be unfortunately labelled as a country with a high risk of debt distress, with all the attendant negative repercussions such labelling brings.

In addition, our annual debt service obligation is taking up bigger and bigger chunks of the fiscal space and consequently limiting the fiscal space for other government priorities.”.

Meanwhile, the Finance Minister-designate recognized the urgent need to address climate change and its impact on national development goals.

Ngafuan declared efforts will focus on supporting and enhancing existing climate strategies and action plans to improve adaptation and resilience.

He intimated that under his watch, Liberia will seek to capitalize on climate finance opportunities to bolster its development agenda.

The former Finance Minister emphasized that given the country’s vast natural resources and significant forest cover, a balanced approach to conservation and commercialization is essential.

He assured the government's commitment to attracting resources for conservation efforts through transparent and equitable means.