Monrovia – The Central Bank of Liberia (CBL) under Governor Nathaniel Patray’s administration would not run as a normal bank operating under a set of guidelines and mandates defined in its Act. Rather, the CBL would run per the dictates of President George Manneh Weah.
Report by Bettie K. Johnson-Mbayo, [email protected]
Being quite oblivious of the sacredness of the Act establishing the Bank, the new governor said he is prepared to set aside the CBL mandate in order to achieve what the President requires of the Bank. This, according to him, is intended to achieve results.
Workers at the Bank, who may deviate from President Weah’s mandate, are likely to have a salary cut or be fired.
“What we’re doing in the bank right now — we are working at the President’s mandate — technical economic management team which is different from the mandate of the Central Bank that is within the bank’s act. We will work with the Bank’s Act, but if it is necessary to sideline it for a while to get the President’s own mandate accomplished, we will have to do that. So, what I am looking for and the rest of the governors is for production, we have to produce so nobody salary will be cut,” he said.
Governor Patray made this pronouncement when he officially took office.
His comment contradicts the Act establishing the Central Bank, which forbids external inference with the Bank.
The Act creating the CBL prohibits Governors of the Bank from having affiliations, which could interfere with their duties spelled out in the Act.
Section 17 (c) of the Act states, “The Governors shall not be regarded as delegates on the board of any commercial financial, agricultural or industrial or other business interest or receive or accept directions therefrom in respect to duties to be performed under this Act.”
The Central Bank is responsible for the supervision of bank-financial institutions, non-bank financial and authorized non-bank financial dealers and brokers;
It is also responsible for the management of aggregate credit in the economy by indirect means, by loan securitization, purchase and sale of securities, transactions in derivatives and foreign exchange through the establishment of required reserves of commercial banks under its jurisdiction.
In addition to formulation and implementation of monetary policies, the Central Bank is tasked with the determination of an appropriate foreign exchange regime, formulation and implementation of foreign exchange policy by holding and managing foreign exchange. The CBL also handles the external banking affairs of the government.
Lists From CDC, MCC
Governor Patray, however, assured employees of the Bank that while he is bent on implementing President Weah’s mandate, he remains resolute not to remove any employee from their job. He disclosed that he has received a list of names from the ruling Coalition for Democratic Change (CDC) and the Monrovia City Corporation for employment.
“I’ve got a list from the Coalition – more than 60 people on the list; I’ve got a list from the Monrovia City Corporation – more than 25 people on the list, lists coming from everywhere, but the Bank can’t employ everybody and those who are on the job will not leave the job because we want to bring in what we consider as people who want to be accommodated,” he said.
Questionable Visit to CDC Headquarters
Barely two weeks after taking over the CBL, Governor Patray showed up at the headquarters of the CDC in an apparent move to validate his loyalty to the party.
His visit to the home of the ruling party probably shows that he’s oblivious of the need for his political independence. He assured members of the Coalition that the CBL would be for all Liberians under his watch. He also resounded his assurance to stabilize the foreign exchange rate in the country.
His visit to the headquarters has ignited fears about his neutrality and again draws attention to his zest to run the Bank on the mandate of the President.
Bringing Changes at CBL
A few noticeable changes have occurred at the CBL. Governor Patray took over after the sudden resignation of former Governor Milton Weeks. The economy has been in tatters and the Liberian dollar continues to depreciate steeply.
Under Patray’s watch as Acting Governor at the time, he issued a mandate barring foreign exchange traders from publishing the exchange rate to the public.
This decision has been criticized, with many citizens describing the decision as unfair and an opportunity for exploitation.
Taking over the Bank, Patray promised to institute reforms which he believes would enhance productivity at the CBL.
“The administration of the Bank, meaning the new administration will soon commence an institutional reform process, targeted at achieving operational efficiency and effectiveness at this Bank. The reform will focus on structural improvements, for greater impact. And when I say commence an institutional reform, that will not only be done by the Board,” he said.
Governor Patray said the CBL Internal Control will be strengthened to help identify weaknesses in the administration and financial management and that the same time ensure compliance with international standards.
“Improvements will be made in a number of areas, including, but not limited to accounting systems, human resources and independent external audit,” he said.
According to him, his administration would operate through a chain of command, stating, “Nobody, no employee of this bank will come to my office with bank matter except they go through their boss.”
“You got problem with what you’re doing at the Bank, see your boss. The boss will see me, and we will discuss. If there is something that will go to the Board, I will take it to the Board, but I will not entertain staff coming to my office.
“If you have personal problem and you think you want to discuss it with the Governor, I will entertain that. But if it is problem relating to the job, you will see your boss.”