Monrovia – The Central Banks of Liberia and the Bank of Ghana have clarified reports surrounding the US$20M cash importation between the two countries, with a commitment to upholding transparency and accountability in the safeguarding and importation of cash to prevent money laundering.
By Obediah Johnson, [email protected]
Early this week, there were reports circulating in the media that the consigned importation of US$20M from the Bank of Ghana (BoG) to Central Bank of Liberia (CBL) was illegal and amounts to money laundering involving unknown authorities of both the Liberian and Ghanaian governments.
But in separate statements issued by the CBL and BoG, the Liberian and Ghanaian governments pointed out that the transaction is a long-standing Cash Custody Agreement subsisting between the two countries.
According to the CBL, the US$20M cash importation consigned to the Bank of Ghana (BoG) destined for Liberia is a legitimate transaction.
“The importation of United States dollars is part of the Bank’s normal function, which is required to meet the needs of the economy, including the USD withdrawal demands and needs of the Government of Liberia and the commercial banks,” the CBL said. “CBL and the Bank of Ghana (BoG) have long standing Cash Custody Agreement executed for the BoG to provide overnight custody for CBL imported cash when shipped from London by Travelex Currency, which is an international currency shipment company.”
Central Bank of Liberia (CBL) and the Bank of Ghana (BoG) have long standing Cash Custody Agreement executed for the BoG to provide overnight custody for CBL imported cash when shipped from London by Travelex Currency, which is an international currency shipment company.
Central Bank of Liberia
The CBL maintained that these cash shipments by flights are cleared through both the Ghana and Liberia Customs, thus validating their legitimate sources.
The CBL, used this medium to emphasize its commitment to transparency and accountability and encourages the media to always reach out to the Bank to verify any information about the Bank`s operations before publication.
Re-exporting
In a statement issued on Wednesday, the Bank of Ghana clarified that the transaction is a long-standing currency transfer arrangement with the Central Bank of Liberia, dating back as far as 2004.
The BoG said as per this agreement, the Bank of Ghana receives imported currency on behalf of the Central Bank of Liberia for re-export to Monrovia.
The clarification made by the Bank of Ghana comes in response to concerns raised by Ghanaian Parliamentarian Samuel Okudzeto Ablakwa, who represents the North Tongu Constituency and serves as the Committee Chairman on Assurances.
Concerns
Ablakwa had expressed serious concerns regarding the alleged movement of US$20 million that was reportedly exported from London to Ghana via Kotoka International Airport (KIA).
The Ghanaian parliamentarian’s revelation, lifted by several news outlet in Ghana and Liberia, has since sparked huge debate, with some questioning the motive behind such huge transfer of cash.
However, in the release, the Bank of Ghana said uncirculated banknotes mentioned in the social media discussions on August 27 are part of this longstanding arrangement, and when all logistical arrangements, including scheduled flights, are finalized, these would be re-exported to the Central Bank of Liberia.
It added as part of administrative processes and security protocols, all relevant stakeholders are officially informed of the entry and exit of consignments related to this arrangement; noting that unless there is mischief intended, there was no reason for this matter to have become an issue for public discussion.
Currency management is a sensitive operation and has security implications; therefore, it is unfortunate that a lawmaker would circulate such sensitive procedural and administrative clearance letter involving another sovereign nation in a bid to misinform and disinform the public and attach a narrative that seeks to suggest some wrongdoing on the part of the Bank of Ghana.
Bank of Ghana
The Bank of Ghana said: “Currency management is a sensitive operation and has security implications; therefore, it is unfortunate that a lawmaker would circulate such sensitive procedural and administrative clearance letter involving another sovereign nation in a bid to misinform and disinform the public and attach a narrative that seeks to suggest some wrongdoing on the part of the Bank of Ghana. The arrangement between Bank of Ghana and the Central Bank of Liberia signifies mutual trust between the two countries and a testament to the strong bond of friendship between Accra and Monrovia.”
The Bank of Ghana further noted that it has one of the most sophisticated state-of-the-art currency management operations within the sub-region and will continue to provide such support to its peer countries as per international best practice.
“The Bank of Ghana will continue to uphold its reputation as a reliable and trustworthy institution in all its international and domestic engagements in currency management,” it concluded.
