LIBERIA HAS A LONG history of viable and flourishing institutions collapsing due to bad management characterized by the wrong decisions.
IN MOST INSTANCES WHEN these wrong decisions are taking place, they go unnoticed until the institution completely collapses before all the ugly happenings come to the public.
FAILED PUBLIC INSTITUTIONS in Liberia are countless and the recent situation with the National Oil Company of Liberia, an entity that once contributed more than US$50 million to the National Budget collapsing within a short span due to bad decision making is one example of a lost opportunity for a public entity to help with the development of the country.
OVER THE LAST FEW YEARS the Central Bank of Liberia-the bank of Government that regulates the financial sector of the country has seen some bad economic decisions which were not pleasing to international organizations such as the International Monetary Fund (IMF).
WHEN THE CBL TOOK THE decision to construct a US$30 million duplex to relocate its offices in a country that is not exporting but purely import base and unable to maintain have a good balance of payment, the IMF cautioned the bank to rethink the decision but in the end, some individuals sat and constructed a luxury building with such whooping amount only for the sake of beautification amid the economic constraints facing the economy.
NOW THE CENTRAL BANK is located in an exotic duplex when the bank cannot control the depreciating value of the Liberian dollars against the United States dollars.
AGAIN, THE CENTRAL BANK under Governor J. Mills Jones started a loan scheme where millions of Liberian dollars were paid to local businesses in most instances to cronies and political allies under the scheme of empowering the private sector.
NOT SEEN ANYWHERE IN the world where a Governor of Central Bank tours from village to village, town to town publicizing a loan scheme, Governor Jones was seen everywhere with t-shirts printed welcoming him form one county to another as he actively took part in the CBL loan scheme.
A CURRENT POLITICAL ALLY of Governor Jones D. Maxwell Kemayah who is serving as National Chairman of Jones’ political party, the Movement for Economic Empowerment (MOVEE) while serving as head of the Liberia Business Association saw the CBL giving out millions of dollars to LIBA.
WITHIN SHORT TIME, SINCE THE CBL increased the amount of money supply in the economy through its loan scheme, the Liberian dollars depreciated greatly but Jones and his political cronies now take affront to any assertion that the Jones led loan scheme might be a contributing factor to the current depreciation of the Liberian dollars against the United States dollars.
WHEN FORMER FINANCE MINISTER Wilson Tarpeh recently made an analysis that by infusing millions of Liberian dollars into the local economy through the loan scheme it might be a contributing factor to the fall in value of the Liberians dollars against the United dollars, Jones MOVEE political party went for Tarpeh’s throat, to clean their political God Father and Chief financier.
THERE ARE REPORTS THAT REPAYMENT of these loans made by the CBL under Governor Jones is now proving difficult because some of these loans were payout without proper documentation.
IMMEDIATELY UPON TAKING OVER, new Governor Milton Weeks requested the Legislature for permission to print US$5 billion to according to him replace mutilated bank notes.
UPON THE GRANTING OF THE REQUEST, Governor Weeks and his team have now opted to change features on the Liberian currency- changing the color, denomination and other features.
THERE IS NO DOUBT THAT THE MANNER and form in which Governor Weeks and the new team at the CBL are proceeding with the printing of new banknotes clearly connotes that there is something sinister about the entire process.
IN THE WAKE OF ALL THESE HAPPENINGS at the CBL within the last few years, there are again reports that the bank payout thousands of dollars to departing officials with some ex-officials reportedly receiving up to US$300,000 according to reports.
ALL THESE NEGATIVE INFORMATION, although the bank is likely to deny all but they are just an indication that something is wrong at the CBL that requires urgent attention.
LIKE THE CASE OF NOCAL, when officials of that entity were engaging in wasteful spending-fabulous salaries, incentives, expensive cars and luxury travels, the entity continually denied these allegations only for the company to collapse few years later.
IN LIBERIA ONCE A PUBLIC entity has not collapsed completely, decision makers sit supinely and watch without taking action even when all the negative information are coming from such entity.
WHEN NOCAL COLLAPSED, members of the National Legislature, religious community were all lashing at officials of that entity and calling for audit, prosecution and other actions to be taken, but these same people were quiet in spite of all the negative news from NOCAL over the years.
NOW IT IS TIME FOR THE CBL where the construction of a duplex, giving of loans, and printing of US$5 billion new bank notes and reported payment of thousands of dollars to departing officials are all issues that require urgent attention.
FROM THE LOOK OF THINGS, the CBL is heading for trouble which might be noticed after total collapse of that entity, so it is time for decision makers to quickly look into these negative reports emanating from the CBL and act swiftly enough to avert another important institution from collapsing.
A COLLAPSE OF THE CBL will be a complete disaster for the entire country and this is why urgent attention is required to look into all these events taking place at the bank to avoid a repeat of the NOCAL scenario.
SOMETHING IS GOING WRONG AT the CBL which is still being kept under carpet and it must be uprooted in the soonest time.
