LIBERIA LEGISLATURE MOVES ONE STEP CLOSER TO PASSING

UNCLAS MONROVIA 000889 SIPDIS SENSITIVE SIPDIS DEPARTMENT FOR AF/W-D/OKEDIJI, INR/AA-BGRAVES E.O.12958: N/A TAGS: PGOV ECON EINV LI SUBJECT: LIBERIA LEGISLATURE MOVES ONE STEP CLOSER TO PASSING NATIONAL BUDGET REF: MONROVIA 804 ¶1. (U) SUMMARY. On July 18 the House of Representatives passed the draft 2007/2008 National Budget and forwarded the document to the Senate for concurrence. Senate President Pro Tempore Isaac Nyanabo suggested the budget debate could continue at least another week. The budget passed by the House of Representatives increased to US$199,783,641 from the US$183,000,000 initially proposed by the Bureau of the Budget in May. The GOL worked closely with the legislature to address initial concerns and provide additional information following early criticism of the budget by the Auditor General (reftel). END SUMMARY. ¶2. (U) The House of Representatives passed a 2007/2008 Draft National Budget on July 18 during a special session. The House added US$16,834,903 in expenditures to the draft budget based upon additional revenues primarily from a US$13,000,000 surplus carried over from the 2006/2007 National Budget and US$2,150,000 in projected dividends from the Liberia Petroleum Refining Company. The House increased the minimum salary for civil servants from US$50 to US$55 and re-arranged several line items within the executive branch allotment. In the budget passed by the House of Representatives, US$15,338,167 or 7.7% of the total budget was approved for the National Legislature, US$7,291,806 or 3.6% was approved for the Judiciary, while US$177,153,866 or 88.7% was approved for the Executive Branch. ¶3. (SBU) Following weeks of stalemate caused by initial controversy over the draft budget, the House was under great pressure to pass the budget quickly. The GOL made considerable efforts to provide additional information to the legislature while refusing to authorize a continuing resolution in order to keep the pressure on the House to address the full budget. Rumors abound that last week the Executive Mansion also provided envelopes of cash ($2,500 each) to members of the House as an incentive to move quickly. One house member well known to the Embassy indicated money may have been given to the Ways and Means Committee. ¶4. (SBU) Senate President Pro Tempore Isaac Nyanabo told PolCouns July 20 that he expects the budget debate to continue for at least a week. According to Nyanabo, although the Senate and House have been in consultations for some time, some Senators have concerns about the change of line items from one ministry to another made by the House because they think these were made without recognition of the longer-range implications, given that every ministry had to prepare and justify its submissions. The Executive will be pressing the Senate to pass the budget before July 26 Independence Day celebrations, but the Senate may have difficulty reaching a quorum during this holiday week. BOOTH