MONROVIA – Deputy Governor for Operations, Nyemadi Pearson, has resigned from her post at the Central Bank of Liberia amid growing concerns over the institution’s integrity. The resignation comes in the wake of a recent audit that revealed perplexing details about the Bank’s operations. However, Pearson’s resignation letter has fueled concerns about the true motives behind President Joseph Boakai’s audit—whether it is a genuine effort to ensure accountability or a strategic move to oust the current leadership at the Bank.
By Lennart Dodoo, [email protected]
In her July 31 resignation letter addressed to President Boakai, Madam Pearson disclosed that her resignation was the result of “discussions with your [the President’s] advisors and mutual agreements regarding the payment of my benefits, which include pension, severance, and compensation for my unexpired tenure.”
Her resignation comes amid the suspension of Executive Governor J. Aloysius Tarlue in connection with the audit. “The decision to suspend you is based on the Auditor General’s Report from the Compliance Audit of the Central Bank for the fiscal years 2018-2023,” Governor Tarlue’s suspension letter stated.
Prior to his suspension, reports indicated that advisors to President Boakai had approached Tarlue, urging him to resign despite having two years remaining in his five-year tenure. The push for his resignation reportedly stalled due to disagreements over the settlement of his severance, benefits, and salary for the remaining term.
This is why Pearson’s resignation, coupled with the audit’s findings, has led to widespread speculation that the Boakai administration may be using the audit as a tool to pressure resignations from key figures within the CBL. This situation mirrors the Liberia Telecommunications Authority saga, where President Boakai suspended the Board of Commissioners and commissioned an audit after his attempt to replace them, despite their tenure, was challenged at the Supreme Court. Following their suspension, he promptly appointed acting commissioners to fill the roles.
Anderson Miamen, Executive Director of the Center for Transparency and Accountability Liberia (CENTAL), argues that Pearson’s resignation should not be accepted until it is proven that she is not implicated in the financial and other discrepancies uncovered by the audit. “Resigning in the middle of a damaging audit report, which could be traced to her and other colleagues is highly concerning,” Miamen told The Liberian Investigator.
Political commentator Ambullah Mamey also weighed in, expressing concern over the implications of using audit findings as leverage for resignations. He questioned whether President Boakai’s advisors are trading audit findings for personal benefits and warned that how the President handles this situation will set a precedent for his administration’s approach to accountability.
Mamey wrote in a Facebook post:
Accountability Traded: JNB”s Advisors Trading Audit Findings For Resignation and Personal Benefits.
In the 1st paragraph of the Deputy Governor’s resignation letter lies a damaging revelation against President Boakai’s Advisors that they must address. She reveals that amidst the damaging GAC audit report that finds she and others wanting for further investigation, President Boakai’s Advisors reached a verbal agreement with her that if she resigns the gov will ignore the findings in the audit report and pay her parting benefits.
Audit report should NEVER be used to blackmail anyone to resign from a position. They should be used to hold people accountable for their stewardship of public resources.
If JNB and his advisors believe Madam Pearson has no part to play in the large-scale mismanagement of public resources at CBL, they should allow her to end her term. Otherwise, they should subject her to further investigation as required and recommended so she can clear her name.
Except we were misled, JNB did not commission these audits to use their findings to blackmail anyone to resign from a position so he can appoint his supporters. The audit, as we are told, is part of a PATRIOTIC effort to end impunity, reduce corruption, and save money to invest in schools, hospitals and other social services for our people.
We demand to know the President’s advisors who are trading damaging audit findings for resignation. What are they benefiting personally? What did they benefit before that made them feel obligated to shield people wanting for investigation.
How JNB handles this 1st set of audits under his administration will determine if and how Liberians will support his accountability agenda. His accountability legacy is tide to this. Other corrupt people are waiting for precedent so they too can mismanage public institutions, resign, and take huge parting benefits.
Some argue that given Pearson’s position as the immediate deputy to the Governor and her oversight of the Bank’s operations, particularly during the periods covered by the audit before Governor Tarlue’s appointment, she should have been suspended alongside the Governor to ensure a fair and transparent investigation into the audit findings.
Key Audit Findings
The GAC audit paints a troubling picture of the CBL’s financial management, highlighting “excessive expenditures and deficit financing”. The audit revealed that the CBL exceeded its approved spending limits by approximately US$19.31 million between 2018 and 2022. It also uncovered improper over-the-counter transactions, including payments to Vision Pro and the West Point Youth Association, totaling US$16,500, all of which were processed in violation of standard banking regulations.
More concerning are the unauthorized financial activities flagged in the audit. The GAC discovered that the CBL made unauthorized payments to the Government of Liberia’s payroll account, amounting to US$50.2 million and US$32.85 million on November 30, 2023, and December 23, 2023, respectively. These transactions were conducted without legislative ratification or approval from the CBL Board of Governors.
The audit also raises potential money laundering concerns, with the CBL facilitating payments totaling L$1.946 billion and US$178.33 million above approved thresholds to institutions via individual names. Additionally, the audit criticized the CBL for bypassing competitive bidding processes, awarding contracts totaling US$11.08 million without the necessary procurement documentation, in clear violation of the Liberian Constitution, the Public Procurement and Concessions Act, and other relevant laws.
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