MONROVIA — Following a damning audit report on the Central Bank of Liberia (CBL) by the General Auditing Commission (GAC), the National Civil Society Council of Liberia (NCSCL) has sharply criticized President Joseph Nyuma Boakai Sr. for hastily accepting the resignation of Madam Nyemadi Pearson, the Bank’s Deputy Governor for Operations.
As the umbrella organization for civil society groups across Liberia, the NCSCL issued a statement on Monday, August 12, 2024, expressing that the President should have delayed Pearson’s resignation until a thorough review of the audit report was conducted. The Council argued that Pearson, who oversaw operations where significant financial irregularities occurred, should have been retained until due diligence was completed.
In a strongly worded statement, the NCSCL condemned the President not only for accepting Pearson’s resignation but also for swiftly appointing her successor, James B. Wilfred. Wilfred himself is implicated in the same audit report, allegedly defaulting on a US$90,000 staff loan from the CBL.
The Council asserted that Wilfred’s appointment contradicts President Boakai’s pledge to end the culture of “business as usual” in Liberia’s governance. The NCSCL’s statement, signed by Chairperson Madam Loretta Alethea Pope-Kai, questioned the wisdom of appointing someone who had failed to repay a substantial loan to the very institution he is now set to lead as acting Deputy Governor.
“Why appoint Wilfred as acting Deputy Governor in the first place? He was unable to repay a US$90,000 loan he took from the CBL while employed there. Instead of being held accountable, he was seconded to the IMF to represent Liberia, and now President Boakai has appointed him to serve as acting Governor for Operations. Which direction is Liberia heading? The National Civil Society Council of Liberia expresses its dissatisfaction with this decision. This is indeed ‘business as usual,'” the statement read.
The NCSCL also criticized the broader approach to governance under Boakai’s administration, noting that while it supports the government’s anti-corruption efforts, these must be executed in a manner that upholds the integrity of audit reports, rather than allowing political considerations to overshadow accountability whenever a key figure resigns.
The Council’s concerns come on the heels of the suspension of CBL Governor Aloysius Tarlue, following an audit that revealed irregular loans to the government and unauthorized spending. The GAC audit uncovered that the CBL had violated several financial laws, including the CBL Act of 1999, the Revenue Code of Liberia Act of 2011, and the Public Financial Management Act of 2009.
The report highlighted that the CBL exceeded its approved spending limits by approximately US$19.31 million between 2018 and 2022. It also documented improper over-the-counter transactions, including payments totaling US$16,500 to Vision Pro and the West Point Youth Association, processed in violation of standard banking regulations.
Furthermore, the audit found that the CBL made unauthorized payments to the Government of Liberia’s payroll account, totaling US$50.2 million and US$32.85 million on November 30, 2023, and December 23, 2023, respectively. These transactions were conducted without legislative approval or authorization from the CBL Board of Governors.
Raising further concerns, the audit report pointed to potential money laundering activities, with the CBL facilitating payments totaling L$1.946 billion and US$178.33 million above approved thresholds to institutions via individual names. The audit also criticized the CBL for bypassing competitive bidding processes, awarding contracts totaling US$11.08 million without necessary procurement documentation, in clear violation of the Liberian Constitution, the Public Procurement and Concessions Act, and other relevant laws.
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