MONROVIA – When President George Weah announced several measures to overhaul Liberia’s slumping economy in May this year, retiring the Governor of the Central Bank, Nathaniel Patray as a means of giving the Central Bank a new direction was among his priorities for salvaging the economy.
In an address to the nation on May 29, 2019, the President said, “To provide the opportunity for the Central Bank to have a new direction, I have accepted the resignation of the Deputy Governor for Economic Policy. The Executive Governor is scheduled for age-related mandatory retirement in the next three months”.
However, as the 90-day timeframe for his retirement has elapsed, Mr. Patray, 68, seems to have taken an adamant posture on his demand for US$500,000 retirement package and making no attempt to turn over the mantle of leadership at the CBL.
His high demand comes at the time when the government is under pressure to cut down its wage bill as a means of strengthening the economy – a piece of advice from the International Monetary Fund.
President Weah said the overhaul was necessary to restore confidence in an institution that has been beset by scandals and is hampering efforts to deal with an economic crisis.
“To provide the opportunity for the Central Bank to have a new direction, I have accepted the resignation of the Deputy Governor for Economic Policy. The Executive Governor is scheduled for age-related mandatory retirement in the next three months”
– President Weah said in nation address on May 29, 2019
The Central Bank has over the years been rocked with major lapses which has called “into question the ability of its present leadership to effectively revamp its internal mechanism to provide greater accountability and professionalism,” Pres. Weah said.
The President, in July 2018, ordered a $25-million injection into the economy to mop-up excess Liberian dollars. An investigation by the state auditor found that only $17 million was used for this purpose. Another inquiry, the USAID-backed Kroll report into the alleged disappearance of about $100 million in cash that was printed abroad found that while no money was missing, there were lapses in the accuracy and completeness of the central bank’s internal records.
Information reaching FrontPageAfrica suggests that a draft report from the Liberia Anti-Corruption Commission (LACC) is poised to charge ten persons, including Governor Patray and Dr. Mounir Siaplay, Former Deputy Governor of fraud, money laundering and violation of the Public Finance Management law.
Investigation aside, Mr. Patray is also said to be unsure whether he will have his way in ongoing negotiations for a retirement package, a mouthwatering US$500,000 payout he is reportedly eyeing when he walks out of the door at the CBL.
The board of governors are said to be reluctant to allow Mr. Patray walk away with the entire US$500,000, citing Section 23 – Vacancies of the Act creating the Central Bank, which states: “If the Executive Governor, the Deputy Governor, or any other Governor dies in office, resigns, or otherwise vacates his office before the expiration of the term for which he was appointed, another person shall be appointed in his place within two weeks for the unexpired period, subject to confirmation by the Senate, from among persons of unimpeachable standing and experience in financial matters.” However, Mr. Patray was appointed and confirmed to complete the unexpired term of his immediate predecessor, former Governor J. Milton Weeks, prompting some observers to wonder whether the departing governor fits in the mole of a sizeable package, especially in the monetary range he is seeking.
In essence, Mr. Patray is reportedly seeking a 48-month pay reflecting the duration of the remaining term of former governor J. Milton Weeks.
The CBL Act says in the case of resignation of the Executive Governor prior to his end of term, an appointment will be made to complete the unexpired term. He was appointed to complete the unexpired term of the previous governor which expires in 2021.
While retiring governors and senior officials are entitled to a retirement package, a source familiar with the negotiations, prompted by the premature departure of the governor told FPA recently that the governor is unlikely to get the amount he is seeking due to the dismal state of the economy. “He may get something but I doubt seriously it would come anywhere closed to that,” said the source speaking on condition of anonymity.
For the immediate future, the governor finds himself in a rather complicated dilemma as the clock the ticks on the 90-day deadline laid out by the president; one that sees him struggling to defend massive hires in the midst of a declining economy and the looming report from the LACC likely to hold him and others responsible for potential breach of the PFM laws.