Monrovia – Three staff members of the Central Bank of Liberia (CBL) have been arrested and placed under police investigation for their alleged involvement in the illegal transfer of US$961,777.
By Gerald C. Koinyeneh, [email protected]
Information Minister Jerolinmek Piah disclosed during the Ministry of Information’s regular press briefing that on August 6, Acting Executive Governor of the Central Bank, Henry Saamoai, alerted the internal audit department of the Central Bank of Liberia about a suspicious real-time gross settlement transaction from the CBL to the International Bank.
On Tuesday, August 6, 2024, Acting Executive Governor of the Central Bank of Liberia, Henry F. Saamoai, brought to the attention of the internal audit department a real-time gross settlement transaction from the CBL to the International Bank of Liberia. The amount involved in the transaction is US$961,777, intended for onward transfer to a beneficiary account at SIB.
Minister Jerolinmek Piah
A real-time gross settlement is a type of payment where the transfer of money occurs between banks without delay. Mr. Piah said the acting Executive Governor Saamoai initiated an investigation, led by the internal audit department, which revealed that the manner in which the transaction was initiated, authorized, and subsequently transferred could have defrauded the Government of Liberia and placed the Central Bank at risk for a potential repayment of US$961,777.
The internal audit examined the procedures and controls surrounding the reversal of the transaction related to the Government of Liberia’s revenue account, and the associated risks, Piah noted. He added the US$961,777 was processed without the necessary approval from senior management of the banking department, as required by the department’s manual.
Multiple scandals
This incident is the latest scandal to engulf the Central Bank under the leadership of Acting Governor Saamoai, following a series of controversies prior to his appointment. A damning General Auditing Commission (GAC) report previously led to the suspension of the Bank’s Executive Governor, Alloysius Tarlue. Deputy Governor Nyemadi Pearson later resigned following negotiation with the executive.
Minister Piah further revealed that the intended beneficiary account at the International Bank, established in 2018, had previously been credited with relatively small amounts. The recent GAC report identified that the company owning the account had received $55,000 without any evidence of work performed.
The three CBL staff members involved are currently in police custody, undergoing investigation. Meanwhile, Acting Executive Governor Saamoai has commissioned a full audit of the Central Bank’s real-time gross settlement transactions to ensure compliance with policies.
Saamoai’s Vision for the CBL
Acting Executive Governor Saamoai has outlined his vision to transform the Central Bank by developing talent, fostering a culture of teamwork, creating a new strategic plan, and promoting transparency and accountability.
In a release on the CBL’s website, Saamoai detailed his vision during his first meeting with the Bank’s general staff on Friday. A former General Manager of the International Bank, Saamoai emphasized the importance of building capacity and working together to achieve the CBL’s core objectives of price stability, financial sector stability, financial inclusion, operational efficiency, and support for economic growth.
He announced plans to immediately establish a committee to develop a comprehensive five-year strategic plan for the Bank.
“In the new strategic plan, we intend to develop, we shall embrace innovation and leverage technology to enhance our mandates, foster decentralization of the Bank, and ensure operational efficiency to promote value for money,” stated the Acting Executive Governor.
Reviewing the GAC audit reports
He also pledged to invest in advanced digital platforms and explore new financial technologies to revolutionize the Bank’s administration and operations, strengthen risk management, and promote effective monetary policy transmission.
Additionally, Saamoai committed to further reviewing the GAC audit reports and other assessments to address the concerns raised and accelerate the CBL’s transformation.
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