Monrovia – President George Manneh Weah has written the Senate, through the President Pro-Tempore, Senator Albert Chie, requesting that that august body authorizes the Central Bank of Liberia to infuse into the economy L$4 billion.
In the December 12th letter, which appeared on the Senate floor Monday, December 16, and now making rounds on the Internet, the President told Sen. Chie that he was making his request “in the interest of national security and to enable our people to celebrate the season in a joyous way.”
“Therefore, and in the interest of national security and to enable our people celebrate the season in a joyous way, I request the Legislature, in accordance with Article 34 D (ii) of the Constitution of the Republic of Liberia, to authorize the Central Bank of Liberia to infuse the amount of L$4.0 Billion into the Liberian Economy to ease the current liquidity pressure,” the President said in his communication to Pro-Temp Chie.
The President, who didn’t ask the lawmakers for permit for him to print additional currency, trusts that the Legislature will respond in a timely manner to his request in the interest of the nation and people.
The President, in his communication, also told the Pro-Temp that he (Weah) is aware that the Legislature is currently deliberating on pressing national issues, including finalizing deliberations on authorization to the CBL to print a new set of Liberian dollar banknotes. According to the President, the existing situation presents a volatile financial environment such that the current Liberian dollar vault cash position of the CBL is very inadequate to meet both current and future Liberian dollar liquidity demand of commercial banks, posing a potential security risk.
“The current liquidity projection of the Central Bank of Liberia (CBL) compared to very low Liberian dollar vault cash positions of both the CBL and commercial banks, makes it imperative for infusing additional banknotes to ease the liquidity pressure as a short-term measure.”
A Financial Expert’s Opinion
When news of the President’s request leaked yesterday to the public, including the press, a financial expert told this newspaper that the President Weah had admitted to a ‘major impeachable crime” — printing money without legislative approval.
The expert, who asked not to be named for fear of reprisal said, “Article 34 D (ii) doesn’t authorize the Legislature to give order to infuse currency into the economy. This decision is solely the responsibility of the CBL. Infusion is a technical duty of the Central Bank of Liberia.”
“What’s happening here is that the President is asking for retroactive approval. That is, the Executive has already printed the money and brought it in the country. It probably did so because of ‘national security’ reason; he did not get the go ahead from the Legislature for the printing. So, the President is now asking for it to be infused into the economy. But the Legislature doesn’t have the Constitutional mandate to order the CBL to infuse currency into the economy,” the expert further noted.
He reasoned that the fact that President Weah is asking the Legislature to authorize the infusion of answers the question that the money has indeed been printed without the authorization of the Legislature, which is a clear violation of the separation of power.
Another source said should the Legislature go ahead with such request from the President and ask the CBL to do what the President wants, they (lawmakers) will also be committing an impeachable offense, too.
“Therefore, and in the interest of national security and to enable our people celebrate the season in a joyous way, I request the Legislature, in accordance with Article 34 D (ii) of the Constitution of the Republic of Liberia, to authorize the Central Bank of Liberia to infuse the amount of L$4.0 Billion into the Liberian Economy to ease the current liquidity pressure.”
– President George Weah’s Letter to the Speaker
What Does Article 34 D (ii) Say
“No monies shall be drawn from the treasury except in consequence of appropriations made by legislative enactment and upon warrant of the President; and no coin shall be minted or national currency issued except by the expressed authority of the Legislature. An annual statement and account of the receipt and expenditure of all public monies shall be submitted by the office of the President to the Legislature and published once a year.”
Two questions
Among the questions now on the lips of concerned Liberians are two important questions, which our expert also raised: Who printed the money (if indeed new money was printed)? and how much was printed?
Based on what was recently obtaining with the shortage of the Liberian dollar and the sudden discovery of crispy, new banknotes surfacing on the market, this financial expert concluded that the planeload of money that arrived recently wasn’t United States dollars as stated by the Government but Liberian dollars that was printed and brought into the country.
Before President’s Request, New Money Already on Market
President Weah hadn’t made his request to the Senate when new, crispy Liberian banknotes have begun surfacing on the market.
The new banknotes, according to the Minister of Information, Lenn Eugene Nagbe on December 11, 2019, were in the vaults of the Central Bank and that the Bank routinely disburses money whenever it sees it fit to do so.
“The Central Bank of Liberia has issued out to commercial banks, unused Liberian dollar banknotes that have been in its custody, in the vaults. The bank puts out banknotes, used and unused, from time-to-time as a routine exercise to meet the liquidity needs of commercial banks. For the record, this administration has not printed any new banknotes,” Minister Nagbe said.
Minister Nagbe’s clarification was made amid awakened allegations by Montserrado County District 10 Representative, Yekeh Kolubah, that the George Weah-led administration had printed money without the authorization from the Legislature.
Rep. Kolubah displaying the fresh, crispy new Liberian dollar banknotes he had received from GT Bank in Sinkor on Wednesday, December 11, told reporters, “You see the new money. They said there was no money in this country. Why would they suffer the Liberian people? You said there was no new money in this country – where is this money coming from?
The lawmaker insisted that the government had said there was no new money, hence the commercial banks were issuing mutilated banknotes, therefore, the sudden appearance of new banknotes, he believes, confirms his allegation that the government secretly printed money without approval.