VZCZCXRO1041
RR RUEHMA RUEHPA
DE RUEHMV #0102/01 0331702
ZNR UUUUU ZZH
R 021702Z FEB 09
FM AMEMBASSY MONROVIA
TO RUEHC/SECSTATE WASHDC 0750
INFO RUEHZK/ECOWAS COLLECTIVE

UNCLAS SECTION 01 OF 02 MONROVIA 000102 
 
SENSITIVE 
SIPDIS 
 
STATE PLEASE PASS TO GOVERMENT ACCOUNTABILITY OFFICE FOR 
ACTING COMPTROLLER GENERAL GENE DODARO AND MANAGING 
DIRECTOR FOR INTERNATIONAL AFFAIRS AND TRADE JACQUIE 
WILLIAMS-BRIDGERS 
 
E.O. 12598: N/A 
TAGS: EFIN EAID ECON PINR LI
SUBJECT: LIBERIA: GENERAL AUDITING COMMISSION REAFFIRMS 
ANTI-CORRUPTION COMMITMENT AND REPEATS REQUEST FOR ASSISTANCE 
 
REF: 08 MONROVIA 936 
 
¶1. (U) Summary:  During an introductory call by the Ambassador, 
Auditor General (AG) John Morlu II praised President Sirleaf's 
commitment to anti-corruption and reaffirmed his support for her 
efforts to improve transparency and accountability in government in 
the face of frequent resistance.  Morlu emphasized that the decision 
to prosecute misconduct remained a "political" one but that the 
imperative to improve financial management systems was a matter of 
good governance and the audits produced by the General Auditing 
Commission (GAC) were already encouraging several ministries and 
agencies to act.  Ambassador praised the GAC's work and stressed 
that incidences of corruption revealed by the audits should be seen 
as a testament to the President's commitment to transparency rather 
than an indictment of her administration.  Morlu thanked the U.S. 
General Accountability Office (GAO) for inviting him to visit and 
welcomed any support the GAO might be able to provide to further 
improve capacity at the GAC.  End Summary. 
 
¶2.  (U) In an introductory call January 26, Ambassador congratulated 
AG Morlu for his work in rebuilding the GAC as an institution and 
for the completion of several professional audits.  She explained 
that the audits were a crucial component of efforts to reform 
economic governance in Liberia and emphasized that evidence of 
corruption revealed by the audits and publicized in the press were a 
testament to the new commitment to transparency of the GOL rather 
than an indictment of the administration.  Morlu agreed that support 
for his work from the President had been resolute.  He noted that 
the President should be proud of her dedication to the independence 
of the GAC.  (Note: As part of her role on the Governance Reform 
Commission in 2005, now-President Sirleaf pushed forward an 
amendment to reinforce the independence of the GAC, shifting it from 
the Executive Branch to an autonomous institution that reports to 
the Legislature.  She also gave up the right to recruit the AG in 
2007 and instead turned over selection of an independent auditor to 
a European Union-sponsored recruiting firm. End note.) 
 
¶3.  (U) Morlu said that initial audits confirmed that most 
ministries and agencies lack appropriate financial management 
systems and that large variance remains between ministry payrolls 
and the official civil service rosters.  In some cases (notably the 
Ministry of Finance), he said the audits have spurred ministries to 
take appropriate action while in other cases agencies have been less 
willing to change.  The AG emphasized that although the decision to 
punish misconduct has a political dimension, the GOL should be firm 
in support of GAC calls to improve internal control systems.  He 
also stressed the importance of getting all accounts (including 
public corporations and autonomous agencies) on the national budget 
so they are subject to transparency and accountability standards. 
 
¶4.  (U) The AG recounted his recent meetings in Washington with the 
General Accountability Office (GAO) and thanked the Acting Director 
for his support.  Morlu explained that the GAC could use additional 
assistance in building capacity through training programs, 
scholarships or even audit manuals.  He noted a particular need for 
specialized technical assistance with upcoming financial audits of 
the Central Bank of Liberia and the Public Procurement and 
Concession Commission. 
 
¶5.  (SBU) COMMENT: The GAC audits are one of the most critical 
elements of GOL efforts to institute sound financial management and 
good governance.  Publication of the audits is a milestone for 
Liberian transparency and a catalyst for enhanced accountability. 
The quality of the audits and Morlu's efforts to create a credible 
supreme audit institution are unprecedented. 
 
¶6.  (SBU) Resistance to GAC audits remains widespread and personal. 
For instance, at the President's State of the Union address January 
26, a group of mid-level GOL officials reportedly attacked and 
threatened the AG in a public scene.  In response, the AG wrote to 
the President to request that she investigate the incident. 
 
¶7. (SBU) The AG has come under fire before and will continue to face 
resistance, but thus far has seemed to counter those attacks.  While 
it is true Morlu does have some eccentricities, his reputation in 
attacking corruption is strong.  Post will continue to support GOL 
efforts to improve public financial management systems through the 
Governance and Economic Management Assistance Program (GEMAP) and 
would welcome any additional direct assistance to the GAC proposed 
by the U.S. GAO.  END COMMENT. 
 
¶8.  (SBU) BIOGRAPHICAL INFORMATION:  John Sembe Morlu II is the 
nephew of former presidential candidate and former Commissioner of 
the Bureau of Maritime Affairs, John S. Morlu.  He was appointed 
Auditor General through a competitive selection process managed by 
the European Union which also funds the AG's salary and other 
 
MONROVIA 00000102  002 OF 002 
 
 
assistance to the GAC.  Before his appointment, Morlu worked for 
Unisys Corporation as audit manager.  He also worked for 
BearingPoint (formerly KPMG) as senior consultant with the 
Departments of Justice and Homeland Security and served as Senior 
Financial Analyst for Teligent, ensuring compliance with US Security 
and Exchange Commission public financial reporting guidelines. 
Morlu holds an MBA in Finance from Johns Hopkins, a Masters in 
International Commerce and Policy from George Mason University, and 
double bachelors in Economics and International Relations from the 
University of Virginia.  Morlu also holds several professional 
certifications including Certified Management Accountant (CMA), 
Certified Fraud Examiner (CFE), Certified Financial Manager (CFM), 
Certified Internal Auditor (CIA), Certified Government Auditing 
Professional (CGAP), and Certified Masters in Business 
Administration (CMBA).  Morlu is often embroiled in controversy. 
Soon after accepting the position as AG in April 2007, Morlu accused 
the government of President Sirleaf of being "three times more 
corrupt" than the interim government of Gyude Bryant.   He then 
criticized the GOL's 2008 draft budget as incoherent.  The House of 
Representatives fined him L$4,999 (US$ 900) in 2008 for failing to 
honor a summons (the Supreme Court later ruled in Morlu's favor). 
His downsizing policy at the GAC in 2008 was criticized by some 
employees as a witch hunt.  And he was involved in a public spat 
with the Governor of the Central Bank of Liberia after he accused 
the Bank of refusing to cooperate with the GAC audit.  Currently he 
is at war with the Deputy AG, who was appointed by the President but 
is considered incompetent by Morlu.  Often in these matters, the 
President has intervened personally to resolve matters and defend 
the AG. 
 
THOMAS-GREENFIELD