LONDON – Both the Central Bank of Liberia and the Ministry of Justice are being mum over a report Monday that the US Federal Reserve in New York responsible for the Central Bank of Liberia’s foreign transfers and payments, has temporarily put a hold on all transactions with the CBL until the CBL can clarify the instruction from the Monrovia City Court about the bank officials linked to the L$16 billion scandal.
Report by Rodney D. Sieh, [email protected]
Multiple sources at the CBL confirmed to FrontPageAfrica Monday that the Feds have expressed concerns about multiple reports in the local and international press regarding the alleged disappearance of millions of dollars in local currency.
The Feds are said to be particularly concerned about the mention of Mr. Charles Sirleaf, who along with some 29 bank officials including the former Governor Milton Weeks have been barred from traveling by the Monrovia City Court.
Mr. Sirleaf, the bank’s Deputy Governor is responsible for Finance, Banking and General Services Departments. His signature is said to be key to all major foreign transfer payments out of Liberia. Thus, the Feds are said to be uncomfortable dealing with Liberia without a legitimate signatory.
Also barred from traveling and under investigation is Mr. Milton A. Weeks, the former Executive Governor Office of the Executive Governor, who previously oversaw the overall Management of the Bank.
Multiple sources confirmed to FrontPageAfrica Monday that several of Liberia’s stakeholders including the International Monetary Fund (IMF) have been raising red flags and concerns that those under investigation should not be involve in the day-to-day operations of the CBL particularly regarding the US Federal Reserve.
President George Manneh Weah recently established a Special Presidential Committee to probe the mysterious disappearance of L$16 billion from the vault of the Central Bank of Liberia (CBL) and the Monrovia City Court last week restricted the movement of 35 employees of the bank pending the outcome of the investigation.
The involvement of the court was triggered by a Writ of Ne-Exeat Republica prayed for by authorities at the Ministry of Justice (MoJ) to restrain persons of interest from leaving the jurisdiction of the court pending an action.
The saga took a rather strange twist Sunday when President Weah, upon his return from the United Nations General Assembly went on a ranting spree as he appeared to throw out conflicting positions on the controversy.
On one hand, President Weah appears to be expressing support for an investigation while appearing to suggest that the matter has been laid to rest by his Minister of State and Finance. In fact, at one point the President insinuated that the media has been overhyping the saga and that no money is actually missing.
The President showered praise on his Ministers of Finance and State for making sure that this issue will come to rest while guaranteeing in the same vein that those responsible for taking the money would be brought to book. “I can guarantee you that – it’s not just by words – I can guarantee you as I said to the UN, if our international partners come with the team and they find out that something was missing – every one that took something if they can bring it back, we will give them opportunity to bring it back. If they can’t bring it back, they will be prosecuted by the law.”
The President told his supporters Sunday that he has told his ministers not to make him shame. “And I tell my friends them – minister just make sure and think about the past when you were working with some of these people – and don’t be implicated. I want to focus so I am asking you people please help me to be focused. Because if you wish for me to fail how those that help you? Will it develop your life?”
The President also took aim at journalists over the reportage of the missing billions saga. “The journalists, you know it’s sad. Just the other day we were fighting to sign decriminalization [law] so the journalist can have their rights. But the fact that they have their rights they cannot say something that will damage the country. So those journalists that said that 16 billion lost and 9 billion lost, they also gonna be brought into the investigation. We going bring them to the investigation so they can tell us where the 16 billion go…”
The strategy for now appears to be changing the narratives of the controversy with some members of the lower house of the national legislature who are yet to look into matter throwing out a challenge to the media and protesters to offer proof before pursuing with a probe.
Senator J. Milton Teahjay (Sinoe) for example, who heads the Senate Standing Committee on Banking and Currency, addressing the media on missing billions saga last week, cautioned the rationale leading to September 24 anti-government protests relative to the alleged missing billions of the Liberian banknotes. While acknowledging the rights of citizens to demonstrate for their rights, Senator Teahjay warned that such action must be backed by facts and evidence pertaining to alleged missing billions and not actions that are based on hearsay, something he accused organizers of the protest of not taking into account. “We are aware of the history of demonstration in this country. During our days of advocacy in this country, protests were held based on facts and not hearsay,” Senator Teahjay said while addressing the media at a major press conference in Monrovia yesterday.
President Weah, prior to his departure to the UN General Assembly, set up an investigative team to probe the reports of the alleged missing billions in the country, and vowed to prosecute whomever is connected to the saga, which is arguably the country’s biggest financial standard throughout its history.
But with mixed messages now emerging out of the Liberian presidency, economists say decision by the Fed has paralyzed international transactions at the Central Bank of Liberia and if the George Weah-led government does not speed up the investigation, it would have an adverse effect on the bank because several employees at the Bank with authority are listed by the court in its writ. Secondly, CBL will be unable to make some foreign payments including foreign mission expenses.
President Mum on Minister Nagbe’s Multiple Printing Claims
The latest development also raises questions about an earlier revelation by Information Minister Lenn Eugene Nagbe who revealed that the current President was kept in the dark by the former administration of President Sirleaf. Minister Nagbe told the VOA that President George Weah was never kept appraised about the new banknotes during the transitional period. “…One would have thought that this new president would have been informed about all of these transactions during the transition notes that were presented to him during the transition meeting but he was not aware,” Nagbe said.
Minister Nagbe went on to confirm the printing of money in several countries. “We can confirm that the money was brought through the Freeport of Liberia and the Roberts International Airport and for now it is US$16 billion Liberian dollars that we have confirmed. An estimated of a little over 15 billion Liberian dollars as far as we have concerned from the ongoing investigation as of today and it came in the two ports of entry.”
The Minister said in November of 2017, the investigation had determined and confirmed that a batch of banknotes came in the country – just before the President assumed office. “Now, when the President received information about these newly-minted banknotes, he sanctioned an investigation which is being chaired by the Ministry of Justice and the Financial Intelligence Unit (FIU) and other security apparatus. The idea is to understand how much money came into the country, how much was ordered, how much was printed, which country it was printed in and how did it affect the foreign exchange situation in the country.”
Who’s in the Know? A Look at the ‘Prime Suspects’
The mixed messages are also drawing scrutiny on those in addition to former governor Weeks and Deputy Governor Sirleaf, who have been drawn into the saga and barred from traveling.
Weeks, the former Executive Governor oversaw the overall Management of the Bank and Sirleaf has oversight responsibility over Finance, Banking and General Services Departments. Both men are considered to be key to having any information regarding what took place over the last few months.
Additionally, Mounir Siaplay Deputy Governor has oversight on the bank’s economic policy operations – and is regarded as someone with information pertinent to the probe of the missing billions.
Dorbor Hagba, Director Banking Operations supervises the activities of the Banking Department ensuring that all domestic and foreign payments are handled in accordance set procedures.
Richard Walker, Director General for Support Services Operations, organizes directs, and coordinates the plans, programs and logistical activities of the Bank – which include general services, maintenance, and procurement.
Adolphus Forkpa, Director of Internal Audit is responsible for planning and directing all audit programs, procedures, assignments and engagements associated with CBL operations.
Then there’s Cyrus Wleh Badio, Head Communications at the CBL, whose only job is to develop and implement the communication strategy of the Bank which will consolidate the CBLs position as a leader in the financial and economic sectors.
Amie N. Rogers, Assistant Director of Human Resources is also on the list although it is unclear why. James Wilfred, the Head of Financial Sector Development Unit is also listed as is Joseph K. Jallah Legal Advisor Office of the Executive Governor. Jallah is responsible for providing legal assistance in the process of legislative development, legislation Management and administration. Conclude activities leading to the signature or endorsement of performance guarantees or any other guarantee and signing onto said piece of instrument to its final stage under law.
Supuwood Tarpeh, Assistant Director of Supervision Department is also listed although it is unclear why. Tarpeh is responsible for spearheading the reform of the insurance industry; develop a road map for the reform of the insurance industry, including the transition to an autonomous regulatory body; develop the appropriate regulatory and supervisory framework for the insurance industry and to conduct industry-wide surveys on the insurance sector with the aim of assisting in the development of the appropriate regulatory and supervisory framework.
Mustapha E. Sherman, Director of Finance, assumes overall control and responsibility for all financial aspects of Bank strategy, coordinate and manage policies regarding capital requirements, debt, and acquisitions, Ensure that regulatory requirements of all statutory bodies are met; Oversee control of the bank’s accounting function. Establish guidelines for budget and prepare the annual budget in consultation with other heads of all departments.
Sylvia Tarkpah, Assistant Director of Finance has reportedly been out of the country for a year studying in Sweden. Her duties include examining transaction on a daily basis and instructs the accounting staff to maintain the records on accounting software; Oversee reconciliation of accounts; Maintain timely and accurate financial statements in accordance with International Financial reporting standards. Tarkpah is also responsible for overseeing the bookkeeping function including maintenance of the general ledger, accounts payable, accounts receivable and payroll.
Joyce J. Dolo, Director Human Resources is tasked with the responsibility of providing a strategic direction of the HRM Department which is in line with the Strategic Plan of the Central Bank of Liberia by developing multi-year human resource strategy; Annually review and make recommendations to Executive Management for improvement of the organization & #39; policies, procedures and practices on personnel matters; Develop and drive the Performance Management System of the Bank so that decisions can be merit-based; Maintain knowledge of industry trends and employment legislation and ensure the organization’s compliance with all employment laws of Liberia.
George Wilson, Deputy Director of Human Resources is tasked with assisting in the annual review and make recommendations to improvement in the organization’s policies, procedures and practices on personnel matters; Oversee the implementation of the Performance Management System of the Bank so that decisions can be merit-based; Oversee all employment and staffing activities of the CBL to ensure that qualified and reputable staff are hired at the Bank; Manage the compensation and benefits program of the Bank; constantly reviewing and providing recommendations for improvement.
Miatta Oberly Kuteh Director Payment Systems oversees the entire project both Payment System project and the National Switch (NEPS); implementation of various integrations aimed at making Payment and receipts automated in the Economy; Work with stakeholders to implement digital financial services in the Banking sector.
Mariea Grigsby Toe is the Assistant Director General for Support Services. She is one of those who signed off on the money before it left the port. She is responsible to provide fleet management; distribute the supply of scratch cards, gasoline, and fuel; process travel documents; secure insurance coverage for bank’s properties and services; ensure proper and accurate inventory of bank’s supplies; and ensure proper management of the mail of the bank.
Maakai Amblard, Head of Regulation and Supervision Department oversee the administration of non- senior staff; assist with the coordination and Former Director of GSS implementation of the Department Performance Management Plans and processes in close consultation with respective senior staff within RSP; Oversees the regular updating of the Department’s Standard Operating Procedures (Operational Manual), Code of Conduct, etc.
Musulyn R.B. Jackson Operations Officer General Support Services Operations is responsible for clearing CBL consignments at various port of entry.
Prince Bull, Auditor Internal Audit is tasked with assisting the Senior Auditor in the preparation of assignment and engagement reports; reviews Junior Auditor’s and Audit Assistant’s work and assignments; Coordinates the activities, work, and assignments of Junior Auditor and Audit Assistant; assists the Senior Auditor in the selection Audit Team members for any engagement and assignment.
Solomon Jaykpah, Auditor Internal Audit, assist the Senior Auditor in the preparation of assignment and engagement reports; reviews Junior Auditor’s and Audit Assistant’s work and assignments; Coordinates the activities, work, and assignments of Junior Auditor and Audit Assistant; Assists the Senior Auditor in the selection Audit Team members for any engagement and assignment.
Theodorsia B. Jreh, Junior Auditor of Internal Audit is tasked with assisting the Senior Auditor in the preparation of assignment and engagement reports; reviews Junior Auditor’s and Audit Assistant’s work and assignments; coordinates the activities, work, and assignments of Junior Auditor and Audit Assistant; Assists the Senior Auditor in the selection Audit Team members for any engagement and assignment.
Oldada Deshield is only a teller at the CBL and it is not clear why she is on the list. Her duties include encashing checks; receive checks and cash for deposit, verify amounts, and check accuracy of deposit slips; enter customer’s transaction into computer (BM+) in order to record transactions and issue computer-generated receipts in applicable (base on activity; Check bulk cash and do sorting of both currencies banknotes to ascertain circulated notes from mutilated banknotes.
Ophelia Nyenpan, a Junior Auditor in the Internal Audit department assists the Senior Auditor in the preparation of assignment and engagement reports; reviews Junior Auditor’s and Audit Assistant’s work and assignments; Coordinates the activities, work, and assignments of Junior Auditor and Audit Assistant; Assists the Senior Auditor in the selection Audit Team members for any engagement and assignment.
Barquolleh Gabriel, Teller at the bank is tasked with encashing checks; receiving checks and cash for deposit, verify amounts, and check accuracy of deposit slips; entering customer’s transaction into computer (BM+) in order to record transactions and issuing computer-generated receipts in applicable (base on activity; Check bulk cash and do sorting of both currencies banknotes to ascertain circulated notes from mutilated banknotes.
Zinnah Davidson, an Operations Officer in the Banking department is responsible for ensuring the availability of cash at all times at the Payment Center by advising immediate supervisor on cash needs as well as accompany printed materials (cash) to the CBL payment centers monthly; To assist with the transshipment of printed materials (cash) from RIA and Freeport of Monrovia to CBL main building; Collect all GOL checks from the CBL Payment Centers to be brought to CBL Head Office for onward processing into the appropriate T24 account monthly.
Kollie Ballah, a driver and General Support Services staff maintains a pool of sanitized vehicles; Maintain a pool of professional drivers; ensures that all vehicles are mechanically fit and report all mechanical problems for repair; Ensure that all damaged vehicles are timely repaired. Ballah is believed to be the one who drove one of the trucks with the local currency. Authorities say he might have an idea of where the truck routes.
Andrew Pabai, is another driver and General Support Services staff. Like Ballah, Pabai maintain a pool of sanitized vehicles; Maintain a pool of professional drivers; ensure that all vehicles are mechanically fit and report all mechanical problems for repair; ensure that all damaged vehicles are timely repaired.
Edwina Edet, a Cash Officer in the Banking Department is also a person of interest although it is unclear which role she may or may not have played.
William Dargbeh, Assistant Director of Banking is responsible for ensure verification of outgoing foreign transfers through the SWIFT system; ensure that all revenues processed through the LRA Tax systems, and those processed by commercial banks through special MOU are captured and posted into the GOL Revenue Account. He is also tasked with ensuring that erroneous receipt is corrected and reissued to customer upon request by LRA authorities; That on a quarterly basis, the revenue collection for quarter is the same as captured by LRA and MFDP.
Stephen B. Nyema, an Accountant in the Finance Section at the bank documents financial transactions by analyzing accounting options and entering account information; Prepare management accounts schedules; Reconcile accounts payable and receivable; Supervise Junior / Record Management Accountant.
Term of Reference for FBI Probe
While it is still unclear how much authorities will be hoping to gather from those on the list, FrontPageAfrica has learned that a more pressing dilemma may be on the horizon with the U.S. government reportedly interested in including in the probe of the missing billions, the status of the US$25 million President Weah announced would be infused into the economy in a bid to salvage the rising foreign exchange rate.
FrontPageAfrica, citing sources, recently reported that most of the commercial banking institutions have been quietly complaining that they were not part of the process and it is still unclear which businesses received portions of the US$25 million.
The Federal Reserve System was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics, particularly the panic of 1907 which led to the desire for central control of the monetary system in order to alleviate financial crises.
Over the years, events such as the Great Depression in the 1930s and the Great Recession during the 2000s have led to the expansion of the roles and responsibilities of the Federal Reserve System.
The U.S. Congress established three key objectives for monetary policy in the Federal Reserve Act: maximizing employment, stabilizing prices, and moderating long-term interest rates. The first two objectives are sometimes referred to as the Federal Reserve’s dual mandate. Its duties have expanded over the years, and currently also include supervising and regulating banks, maintaining the stability of the financial system, and providing financial services to depository institutions, the U.S. government, and foreign official institutions. The Fed conducts research into the economy and provides numerous publications, such as the Beige Book and the FRED database.
Part of the CBL’s function is to control the nation’s money supply and the overall availability of credit in the economy. It can increase the supply of money and the availability of credit by lowering the percentile of deposits that banks must hold as Reserve at the Federal Reserve System, by lowering the discount rate, or purchasing government bonds through open market operations. The Federal Reserve System can decrease the supply of money and the availability of credit by raising Reserve selling government bonds.
Freeze Not New for the Feds
As this story went to press, FrontPageAfrica gathered that justice officials were still in discussion with the Monrovia City Court in a bid to see how best to rework the Writ of Ne-Exeat Republica and address the concerns of the Feds.
Freezing accounts are not new for the Feds. In recent years, the U.S. Treasury and other government departments have turned to confidential accounts several times in a bid to analyze the asset holdings of the central banks of Russia, China, Iraq, Turkey, Yemen, Libya and regularly keep a tight lid on information contained in these accounts. In June 2017, Reuters, citing a number of US officials, reported that the US regularly use a “need to know” confidentiality exception in the Fed’s service contracts with foreign central banks. That exception, according to the report, has allowed Treasury, State and Fed officials without regular access to glean information about the movement of funds in and out of the accounts.
That information has helped Washington monitor economic sanctions, fight terror financing and money laundering, or get a fuller picture of market hot spots around the world. Some 250 foreign central banks and governments keep $3.3 trillion of their assets at the Federal Reserve Bank of New York, about half of the world’s official dollar Reserve. This is why the uncertainty in Liberia over the missing billions has gotten the Feds attention and why the Weah-led government may be under increased pressure to take the probe more seriously.
