MONROVIA – Before President Joseph Boakai suspended the Governor of the Central Bank of Liberia (CBL), J. Aloysius Tarlue, as a result of the recently conducted audit, the Central Bank was already having issues with the manner in which the audit was concluded. The General Auditing Commission (GAC) had rejected key documentation it needed to conclude its audit of the Bank. The CBL raised concerns over the motive of the GAC.
By Lennart Dodoo, [email protected]
On July 18, 2024, the Central Bank submitted the requested documents to support its responses to audit queries. These documents were received by Ms. Daniella Berrian of the GAC, who began the verification process. However, just 30 minutes into the process, Audit Lead Mr. Abraham T. Cooper halted the verification and ordered the documents returned, stating that he had received instructions “from above” not to accept those documents. He advised that the CBL “should take them [the documents] to the authorities when summoned.”
The CBL expressed concern over this rejection, highlighting that it contradicted previous agreements and email exchanges between CBL and GAC officials, which had allowed for the submission and review of these documents. The CBL saw this as a breach of protocol and an obstacle to completing the audit transparently.
In response, Auditor General P. Garsua Jackson defended the GAC’s actions, blaming the CBL for not submitting the documents by July 16, 2024. Auditor General Jackson explained that on that date, the Deputy Governor for Operations informed the Deputy Auditor General that the CBL had documents for the GAC’s review and requested that a CBL staff member be present due to the sensitive nature of the documents. The Deputy Auditor General responded, indicating that the documents should be available by Tuesday, July 16, 2024, as the GAC was finalizing its report. However, the documents were not submitted to the GAC until Thursday, July 19, 2024. The review of the report had essentially concluded by the time the documents arrived at the GAC at about 12:30 PM.
Email exchanges between Deputy Governor Nyemadi Pearson and Deputy Auditor General Winsley Nanka reveal that DAG Nanka requested on July 16, by 5:46 PM, that the CBL “please send the evidence you have by tomorrow morning by your staff,” meaning July 17. This contradicted Auditor General Jackson’s claims that the documents were required on July 16.
The Suspension and Its Fallout
Tarlue’s suspension, according to Minister of Information Jerelinmek Piah, aims to allow him to address the findings of the GAC audit report, which included issues like excessive expenditures, deficit financing, improper transactions, unauthorized payroll financing, potential money laundering concerns, and lack of competitive bidding in procurement. These revelations indicated that the CBL’s operations were not aligned with constitutional and regulatory requirements.
President Boakai, in his communication to Governor Tarlue, stated, “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.”
Prior to the audit of the Central Bank, there were unconfirmed reports that President Boakai had asked Tarlue to resign to enable the appointment of a new Executive Governor of his choice. However, an agreement could not be reached on his settlement fees as he had reportedly calculated his settlement benefits to include his salary and benefits for the rest of his tenure at US$1.3 million.
Governor Tarlue’s Legal Challenge
Governor Tarlue has taken his case to the Supreme Court, arguing in a petition for prohibition that the Executive Branch acted illegally and unconstitutionally in suspending him. The petition, filed on August 2, 2024, seeks to halt the actions taken by the Executive Branch, which he claims violate the Central Bank Act and the 1986 Constitution of Liberia. Represented by the legal firm Gongloe & Associates, Inc., Tarlue argues that his suspension, executed without a formal hearing, breaches due process and undermines the rule of law. He noted that he was appointed on July 15, 2021, for a fixed five-year term, a tenure that can only be cut short by impeachment through the National Legislature, not by presidential decree.
“The content of the Petitioner’s letter of appointment clearly states that by virtue of his appointment as the Executive Governor, he had a definite term to serve and could not be dismissed by the President of Liberia or removed from performing his function, except by impeachment by the National Legislature,” the petition stated.
Tarlue’s legal arguments are grounded in the Central Bank Act, specifically Section 13.1 of the Amended and Restated Act Establishing the Central Bank of Liberia (1999), which outlines that the appointment of the Executive Governor, confirmed by the Liberian Senate, is for a term of five years. Tarlue stressed that his appointment followed these legal stipulations and that his suspension was a direct violation of this law.
The petition also highlights a breach of due process as stipulated in Article 20(a) of the 1986 Constitution, which guarantees that no person shall be deprived of life, liberty, property, or any other right without due process of law.
Governor Tarlue’s lawyers further contend that the Executive Branch’s action infringes upon the Legislature’s exclusive authority to impeach and remove the Executive Governor, a breach that threatens the balance of power within the government. The petition states: “The Petitioner references subsection 14.5 of the Amended and Restated Act Establishing the Central Bank of Liberia (1999), which states that a removed party is entitled to due process in accordance with the 1986 Constitution of the Republic of Liberia and other relevant laws of the Republic of Liberia.
“The Petitioner states that in flagrant violation and complete disregard for the law establishing the Central Bank of Liberia, he was on July 30, 2024, suspended from his position as the Executive Governor of the Central Bank of Liberia by President Joseph N. Boakai based on the Auditor General’s Report on the compliance audit done by the General Auditing Commission of the Central Bank of Liberia for the fiscal periods 2018-2023.”
The implications of this suspension extend beyond his personal case, he argued. According to the petition, it potentially allows the Executive Branch to arbitrarily remove other tenure-protected officials, including members of the Supreme Court. The petition argues: “The Petitioner contends that if the respondent is not prohibited from removing from office officials in the three branches of government with tenures protected by law or whose removal can only be by impeachment or other legal procedures and for specifically stated legal grounds, then such arbitrary action by the government may become a precedent for the removal of other protected officials, including members of the Supreme Court, through “suspensions,” thereby making the Executive Branch a superior branch of government contrary to the intent of the framers of the Constitution of Liberia and the people of this great Republic. Hence, the word suspension constitutes a slippery slope for all tenure officials in the three branches of government that needs to be made unavailable to the Executive Branch of Government by this honorable court; otherwise, Liberia will gradually slip into dictatorship by default of the court and through the tricks and chicanery of the Executive Branch, given that the word suspension as used by the Executive for the removal of tenure officials of government is, conceptually, a clever attempt to circumvent the law.”
Governor Tarlue’s legal team, led by Counsellor Tiawan S. Gongloe, alongside Counsellors Daoda M.T. Keita, Migbeh S. Gbartor-Dor, and G. Kandakai, is calling for his immediate reinstatement with all rights and emoluments. “The conduct of the respondent is illegal and contrary to what normally obtains in such cases and circumstances,” the legal team argued, urging the Supreme Court to issue a stay order against the suspension and provide a definitive ruling to prevent such actions in the future.
Discussion about this post