MONROVIA — The Chair of the House of Representatives Committee on Ways, Means, and Finance, Representative Dixon W. Seboe, has asserted that the Central Bank of Liberia’s (CBL) decision to use Ghana as a transit point to bring US$20 million into the country is legitimate and part of the global money movement process.
On Wednesday, August 28, 2024, The Liberian Investigator reported that Samuel Okudzeto Ablakwa, a member of the Ghanaian Parliament, raised concerns regarding a shipment of US$20 million allegedly sent by the CBL to Ghana.
According to reports, the money is intended to be kept in the Bank of Ghana’s vault until an available flight can transport it to Liberia.
After the media outlet’s publication, the CBL confirmed that Ghana is being used as a transit point to facilitate the return of the money to Liberia.
Seboe, who represents Montserrado County Electoral District #16, acknowledged the concerns raised by Ablakwa but clarified that the CBL management informed the House of Representatives about the matter at the request of House Speaker Cllr. Fonati Koffa and the House’s Committee on Banking and Currency.
The lawmaker explained that money movement can be executed in two ways: either the CBL makes a direct request for cash on behalf of the Liberian government from the Federal Reserve in the United States to replace mutilated banknotes, or it makes a similar request on behalf of a commercial bank.
“In banking, especially at the level of the Central Bank, the CBL would have some mutilated money. When money gets torn up, the Bank exchanges the mutilated United States Dollars with the Federal Reserve in the United States. The Federal Reserve then discounts that amount and sends the money back to the relevant country,” he explained.
Seboe, who is a ranking member of the opposition Congress for Democratic Change, further stated that if a commercial bank needs cash and makes such a request, the money passes through the Central Bank of Liberia for release.
In an exclusive interview with The Liberian Investigator at his Capitol Building office in Monrovia on Wednesday, August 28, 2024, Seboe revealed that Speaker Koffa immediately sought clarity from the CBL as to whether they were expecting money, to which the Bank confirmed.
“The acting Central Bank Governor informed the Speaker that they had sent US$25 million in mutilated banknotes to the Federal Reserve. Once you have mutilated banknotes, you’re discounted. Based on that condition, the Bank said they were discounted US$5 million,” Representative Seboe asserted.
The lawmaker further noted that due to challenges with international flights, the Bank used Ghana as a transit point. “Once we secure another arrangement for a flight, the money will be brought into Liberia because normally, US$20 million would not come through a commercial flight; it has to be a chartered or DHL flight.”
Representative Seboe maintained that the transaction is legitimate under standard banking practices and does not require legislative approval, as it does not involve the printing of new banknotes. “This is only about mutilated banknotes sent to the Federal Reserve to be changed and sent back.”
Seboe, who previously chaired the House Committee on Banking and Currency, promised to work with his colleagues on the committee to request documents supporting the Bank’s actions, urging media practitioners to follow suit.
In response to the concerns raised by Samuel Okudzeto Ablakwa, Representative Seboe stressed that unless Mr. Ablakwa can substantiate his suspicions regarding the transaction, the account of the Central Bank of Liberia remains accurate.
Additionally, in a text message sent to our reporter via WhatsApp on Wednesday, August 28, 2024, Representative Richard Nagbe Koon supported the transaction between the Central Bank of Liberia and the Bank of Ghana, emphasizing that Liberia is a dollarized state.
“It’s a legitimate transaction. Liberia is a dollarized nation, using the US$ as legal tender, and the USD is a foreign currency,” he noted.
Representative Koon, a ranking member of the ruling Unity Party, further explained that whenever the United States Dollar gets mutilated, Liberia is compelled to request newer notes by exchanging the mutilated currency for fresh foreign currency notes.
“Normally, such transactions involve an exchange loss,” the lawmaker asserted.
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