MONROVIA – The Central Bank of Liberia (CBL) is under growing scrutiny for its persistent delays and apparent reluctance to enforce key regulations governing the ownership structure of Lonestar Cell MTN’s Mobile Money service. The controversy has intensified following reports that foreign shareholders of the company held a private meeting with President Joseph Boakai, raising serious transparency and governance concerns.

The issue erupted after President Boakai, during a recent cabinet meeting, revealed that while on a trip to Accra, Ghana, an investor linked to Lonestar Cell MTN informed him that a 20% stake—reportedly intended for the Government of Liberia—was instead held by private Liberian individuals.

In response, President Boakai directed the CBL and the Liberia Revenue Authority (LRA) to investigate and, if necessary, move to reclaim the 20% stake in the mobile money operation—separate from MTN’s core GSM business.

Following the President’s disclosure, the Senate Committee on Posts and Telecommunications convened a public hearing on May 28, inviting stakeholders from the Liberia Telecommunications Authority (LTA) and the CBL. However, to the disappointment of many, parts of the hearing were held behind closed doors at the request of stakeholders, and no public findings have since been released.

Mounting Tensions and Credibility Concerns

Sources tell FrontPage Africa that the individual accused of misleading President Boakai is Ebenezer Asante, MTN Group’s Vice President for West Africa. His role in briefing the President has been met with sharp criticism, with critics accusing him of creating confusion at the highest levels of government and undermining the regulatory authority of the Central Bank.

Adding to the controversy, sources allege that President Boakai has since engaged in exclusive discussions with MTN’s foreign shareholders, with local Liberian shareholders excluded—a move that has fueled public anger and raised questions about transparency.

“For the sake of transparency, the President should not be holding closed-door meetings with foreign investors while sidelining local shareholders,” said one concerned observer.

Another source warned

“They are bypassing the Central Bank by appealing directly to the President. This weakens the institution’s autonomy and raises serious governance issues.”

There are increasing calls for the Ghanaian government to intervene and rein in Asante, while also urging President Boakai to clarify his position on the ownership dispute and affirm his administration’s commitment to institutional independence.

CBL Accused of Regulatory Lapses

Meanwhile, the Central Bank faces mounting pressure to enforce its own regulations. According to reliable sources, top MTN executives are currently in Monrovia, allegedly attempting to circumvent government regulations, including a CBL mandate requiring the establishment of a Board of Directors for the Mobile Money service.

Despite being fined at least twice by the CBL, MTN has continued operating without a board, allegedly due to concerns over losing majority control.

“MTN has refused to set up a Board of Directors because they would not retain a majority,” a source familiar with the issue disclosed.

In 2013, the CBL mandated that 20% of MTN Mobile Money shares be allocated to four or more Liberians. Although MTN has consistently claimed compliance, FrontPage Africa has learned that this has not been the case for over a decade. The most recent compliance deadline of May 9, 2025, reportedly passed without MTN acting.

At the May 28 hearing, CBL Executive Governor Henry Saamoi acknowledged that while MTN has met some regulatory requirements, it remains noncompliant overall.

“Mobile money operations in Liberia are governed by a 2014 regulation which requires operators to have independent management, distinct boards, and separate financial systems from GSM operations,” Saamoi said.

“Some requirements have been met; others have not. They [Lonestar Cell MTN] are not in full compliance.”

He added that the sensitive nature of the noncompliance issues required further discussion in committee, rather than in a public forum.

Legal Ambiguities and Limited Disclosure

Speaking on behalf of MTN Mobile Money, Legal Counsel Prince Kruah confirmed that the issue of Liberian shareholding is currently before the courts. However, he declined to name the shareholders or clarify the company’s failure to resolve the matter over the years.

“Mobile Money has been very compliant, even if not 100%, but we’ve done our best to meet the CBL’s requirements,” Kruah stated.

“As management, we do not speak for shareholders; we don’t represent them.”

When asked whether the shareholders’ names appear in company documents, Kruah did not deny it—but also refused to disclose them publicly.

Monrovia – As a crucial step toward establishing the National Insurance Commission of Liberia, the Central Bank of Liberia on Wednesday, March 5, begins a three-day validation workshop to review the draft insurance law of 2020 at the Executive Pavilion in Monrovia.

The validation runs until Friday, March 7. The validation aims to review the Proposed Draft Insurance Commission Act, a critical step towards establishing a robust legal framework for the establishment of the unitary insurance commission to effectively regulate the Insurance Sector of Liberia.

The validation workshop will bring together stakeholders with diverse expertise to enhance the validation of the Proposed Draft Insurance Commission Act. Stakeholders’ feedback and recommendations will be incorporated into the final draft to be submitted to the Office of the President for onward submission to the National Legislature for passage.

Upon passage by the Legislature, the Insurance Commission Act will lead to the creation of the National Insurance Commission of Liberia.
Amongst other things, the draft Proposed Insurance Commission Act includes the framework for the issuance of regulating and supervising the Insurance Sector, licenses, enforcement of compliance, taking enforcement action against unlicensed firms, and establishing standards for conducting insurance business in Liberia.

Under the draft Act, the proposed Insurance Commission will have power to subpoena information and witnesses from various government entities, enforce mandatory insurances including third-party motor insurance, Fire Insurance, Marine, Professional indemnity Insurance and create a department to handle complaints against insurers or insurance institutions.

This new entity will be the sole regulator of the insurance industry, ensuring that license holders are supervised on a risk-sensitive basis, fostering competition within the industry and expanding access to the insurance market in Liberia. By fostering a well-regulated insurance sector, the commission will also contribute to the overall economic stability and growth of the country.
The Central Bank of Liberia is optimistic that the involvement of stakeholders in the validation process of the draft act will ensure due diligence and best practices as required for the passage of the act and subsequent establishment of the insurance commission.

The CBL also emphasizes that the engagement and contributions of stakeholders are vital to the successful validation of the Draft Insurance Act, which aims to create a transparent, efficient, and inclusive insurance industry in Liberia.

MONROVIA – The Government of Liberia, through the Central Bank of Liberia (CBL), has initiated steps to establish a private pension scheme and an Insurance Commission in the country.

By Obediah Johnson, obediah.johnson@frontageafricaonline.com

CBL Executive Governor, Henry Saamoi, disclosed this during an appearance before the Senate Committee on Banking and Currency on Friday, February 28. 

Saamoi emphasized that the CBL is intervening to break up the existing monopoly in Liberia’s pension sector.

“We are looking at introducing a private pension scheme,” Saamoi said, noting that the African Development Bank (AfDB) has provided a grant of US$400,000 to fund a study on the introduction of a private pension system. The Ministry of Finance and Development Planning has already signed the grant with AfDB, and the CBL will implement the program.

Procurement processes will soon begin to conduct the study, which is expected to lay the foundation for the establishment of a private pension scheme in Liberia.

Insurance Commission

Saamoi also announced that the CBL has drafted an Act for the creation of an Insurance Commission in Liberia. A validation workshop for the Act is scheduled for this week, and once validated, it will be submitted to the National Legislature for passage into law. The establishment of the Insurance Commission will shift oversight of the insurance sector from the CBL to the new body.

Inflation Control

Saamoi addressed the issue of rising inflation, which reached double digits in January 2025. He stated that the CBL is committed to reducing inflation to single digits within the year.

To help control inflation, the CBL has introduced two new instruments allowing commercial banks to invest excess reserves with the bank. This move is aimed at controlling the currency in circulation and managing the exchange rate.

Saamoi also urged lawmakers to pass an Act that would strengthen the CBL’s independence, enabling the bank to intervene more effectively in the financial sector, particularly in cases involving commercial banks.

Deposit Insurance Fund

Saamoi highlighted plans for a Deposit Insurance Fund through a Deposit Insurance Scheme. The fund will provide commercial banks facing financial issues with a safety net, allowing them to seek assistance from the fund rather than from the CBL directly.

He noted that while the level of deposits at commercial banks has been low, the Deposit Insurance Scheme would help increase depositor confidence and coverage as the fund grows.

Monetary Policy Rate (MPR) from 18.5% to 17.0%, following the Monetary Policy Committee’s (MPC) final quarterly meeting for 2024 on October 16. 

By Jaheim. Tumu- jaheim.tumu@frontpageafricaonline.com

This decision reflects the CBL’s confidence in maintaining a stable exchange rate and managing inflation as Liberia approaches the final quarter of the year, buoyed by positive macroeconomic indicators.

In a statement released on October 18, the MPC reviewed current economic conditions and outlined its monetary policy actions for the upcoming quarter. 

Honorable James Wilfred, the CBL’s Acting Deputy Executive Governor for Operations, emphasized that the global economy has demonstrated resilience despite challenges such as supply chain disruptions, pandemic effects, and geopolitical conflicts, notably the ongoing Russia-Ukraine war and the Israel-Hamas crisis.

“Despite these headwinds, the global economy managed to avoid a recession in 2023, achieving a real GDP growth of 3.3%,” Wilfred noted, though he projected a slight decline to 3.2% for 2024. He attributed this stability to tight monetary policies that have moderated global inflation, which is expected to decrease from 6.7% in 2023 to a projected 5.9% in 2024.

Domestically, Liberia’s economy showed signs of improvement in the third quarter of 2024, with the country’s Quarterly Real GDP (QRGDP) growing by 1.3%, reversing a previous quarter’s contraction. The MPC linked this growth to a moderation in consumer prices and increased consumption.

Inflation rates also showed signs of easing, moving from 7.4% in the second quarter to 6.8% in the third quarter, with expectations to further decline to 6.4% by year’s end due to improved food prices and effective monetary policy.

Nevertheless, Wilfred raised concerns about the performance of Liberia’s banking sector, highlighting a 1.2% increase in loans and advances while indicating declines in total assets, deposits, and capital. Non-performing loans (NPLs) also saw a rise by 1.79 percentage points.

The MPC reported a 1.6% contraction in the broad money supply (M2) during the third quarter and a slight decline in currency circulation. However, activity related to CBL bills showed strong growth, with subscriptions increasing by 24.8%.

Liberia’s fiscal operations recorded a deficit in the third quarter, attributed to a 9.7% drop in revenue collection and a 0.5% reduction in expenditures. Nonetheless, the primary balance reflected a surplus of US$4.8 million.

Additionally, Liberia’s trade deficit narrowed significantly to an estimated US$48.9 million from US$168.3 million in the previous quarter, credited to lowered import payments and a rise in export receipts. Gross international reserves increased by approximately 6.5%, enhancing the country’s import cover from 2.2 months to 2.9 months.

The exchange rate of the Liberian dollar showed relative stability, appreciating marginally to L$193.26 per US$1.00 by the end of September 2024, although it experienced an average depreciation of 0.68% during the quarter.

The MPC’s decision to lower the MPR is driven by expectations of moderating inflation and a stable exchange rate in the coming months.

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, Obediah.johnson@frontpageafriconline.com

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.”

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.

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.

Monrovia – The chairman of the Senate Committee on Public Accounts, Amara Konneh, has raised issues with the Central Bank of Liberia (CBL) for the sheer display of total disregard for the country’s monetary policy, by issuing guarantees for liabilities in the purchase transactions of two commercial banks operating in the country.

By Obediah Johnson, obediah.johnson@frontpageafricaonline.com

According to the Gbarpolu County senator, the CBL issued guarantees for the non-performing loans, advances, and deposits assumed by Sapelle International Bank Liberia Limited (SIBLL) and Global Bank during their purchase transactions without the involvement of the National Legislature.

There have been reports of alleged bankruptcies of the two banks, something which prompted purchase transactions and ownerships.

His claims were contained in a communication addressed to the Plenary of the Senate and read during Thursday, July 11 regular session at the Capitol Building in Monrovia. 

Senator Konneh maintained that the CBL failed to follow proper procedures, including legislative approval, prior to issuing the guarantees.

“I present my compliments and I would like to bring to your attention the recent allegations involving the Central Bank of Liberia (CBL) issuing guarantees for liabilities in the purchase transactions of two commercial banks without following proper procedures, including Legislative approval. The liabilities on which the guarantees were issued are due.”

Reasons for acting

He emphasized that in an effort to maintain stability in the financial sector of the country, the CBL claimed to have issued the guarantees on non-performing loans, advances, and deposits assumed by SIBLL and Global Bank during their purchase transactions, the issuance of carte blanche guarantees by its Board to cover losses at insolvent commercial banks requires an immediate investigation.

“Reports indicate that SIBLL has depleted its reserves with the CBL, while Bloom Bank lost a court case and is facing demands for payment from the plaintiff. Furthermore, there are active lawsuits against Bloom Bank.”

Senator Konneh stated that as the custodian of Liberia’s monetary policy, the CBL is not intended to be a charity institution in the name of financial stability. 

No legal backing

According to him, there is no legal backing that justifies for authorities of the CBL, including the Board to issue guarantees without the acquiescence of the National Legislature.

“The Board (of the CBL) had no right to issue these guarantees without the proper involvement of the Legislature. Our Constitution and laws provide proper procedures for addressing the issuance of guarantees, which should include the Executive and Legislature.”

Senator Konneh reminded his colleagues that the tenure of a few members of the board of the CBL expires today, July 12, and as such, the Senate should request President Joseph Nyuma Boakai to extend their stay by two weeks for the sake of investigating the matter.

He observed that the departure of the few Board members whose tenures expired would impede the progress of any investigation into the matter.

Paying Kailondo’s money

Justifying the significance of his call to investigate the matter during the session, Senator Konneh disclosed that the action taken by the CBL clearly shows how some public institutions (which he did not name) are just crediting and issuing guarantees without coming to the National Legislature for approval.

He recalled a situation where the SIBLL acquired the DN Bank (which previously acquired FIBANK) during past administrations.

He said as part of efforts to maintain financial stability following the takeover, the CBL issued guarantees for the liabilities of the bank committing Liberia’s reserves in the case of default or financial disputes.

Senator Konneh recalled a similar situation with the Global Bank, and a lawsuit instituted and won by prominent Liberian businessman George Kailondo. Mr. Kailondo is the Chief Executive officer of Kailondo Petroleum Incorporated.

In April 2022, the Judge of Criminal Court ‘C’, Ciapha Carey, ruled in favor of Liberia Mr. Kailondo in his $3.5 million lawsuit filed against the Global Bank Liberia Limited. 

The bank was indicted by the Liberia Anti-Corruption Commission (LACC) for financial crimes.

A unanimous verdict was handed down by the 12-member jurors in favor of Kailondo. The verdict stemmed from an indictment issued on the management of Global Bank Liberia, through their Managing Director/Chief Executive Officer (CEO), Rotimi Sangodeyi, and all their authorized personnel for the commission of the crime of theft of property and misapplication of entrusted property.

The bank was held liable for transferring and disposing of monies intended for the use by the owner, Kailondo Petroleum Incorporated, represented by its Manager, Cllr. George B. Kailondo.

The indictment indicated that between 2014—202, CEO Sangodeyi and others, having influenced and authorized the withdrawals, transfers, deduction of commissions and fees from the (escrow and current) accounts of Kailondo Petroleum Incorporated, bearing account numbers 103010204953, 103010108930, 103020104523 and 10302012015198, in both currencies (USD and LRD), without the authorization of the company’s CEO, Cllr. Kailondo, in several amounts totaling US$3,460,422.93 and L$6,245,800.00.

It also noted that between the period July 31, 2019 and December 31, 2019, the government, through the LACC investigation established four debit transactions, totaling US$90,385.11, which was processed by the Global Bank management, with the narration, “Debit Interest”, without any source document authorizing the debits. 

Global bank was found guilty for violating Title 26, Section 15:56 of the Statutory Laws of the Republic of Liberia, and peace and dignity of the Republic of Liberia.

The bank, through the CBL, has already paid the amount of US$705,744.78 amounting to 25% of the US$3.5m expected to be paid to Mr. Kailondo. 

“The money paid to Mr. Kailondo came from our reserves; it did not come from the reserves that come from the reserve that the Central Bank is withholding for Bloom Bank because Bloom Bank does not have enough reserves to operate.”

A call for Board members to stay

Senator Konneh stressed that the Senate must help ensure that the few Board members who were at the CBL when the decision was made to enter into Liberia’s reserves to pay liabilities for the two commercial banks be made to remain at the bank until the probe is conducted.

“Since this contradicts the law, we need to make sure that they avail themselves for this. This 55th Senate needs to hold people accountable for their actions to ensure the integrity of our institutions, especially an institution as crucial as the CBL. The CBL does not have any right or whatsoever to issue guarantees in the name of financial stability without consulting with us either through committee or directly through the Senate Plenary.”

Meanwhile, the Plenary of the Liberian Senate has mandated its committees on Banking and Currency and Judiciary to report back following the return of Senators from their second annual break.

A motion for the action to be taken was filed by Montserrado County Senator Abraham Darius Dillon.

The alleged action of the CBL has the propensity of depleting Liberia’s reserves. It also threatens the country’s financial stability in the wake of numerous challenges confronting its citizens.

CBL’s latest issuance of guarantees for the non-performing loans, advances, and deposits of commercial banks is becoming habitual.

The act may continue as a gamble of the country’s financial reserves if members of the national Legislature, especially the Senate allow the matter to be swept under or treat it as a regular “business as usual” thing.

Monrovia – Sources at the Central Bank of Liberia (CBL) have confirmed that SIB Bank is liquid and compliant with all banking regulations in the country. This statement comes in response to a recent local daily report titled, “US$2 Million Given SIB in Limbo?”

The source revealed that during the acquisition of the license, the now-defunct First International Bank Liberia Limited (FIBLL) was undergoing liquidation. To prevent damage to the banking industry from a potential collapse, the CBL entered into an arrangement with SIB Liberia Limited, enabling SIB to take on a significant portion of FIBLL’s assets and liabilities.

According to the unnamed source, these arrangements were designed to protect the soundness of the Liberian banking system. The transaction between SIB and the CBL also maintained national confidence in the financial industry, averting a collapse of the former bank, which could have caused significant damage.

Further investigation revealed that through this arrangement, SIB inherited a legacy deposit of US$23 million, of which the bank has so far paid US$14.9 million to legacy depositors.

“By their efforts, we understand that SIB saved key depositors from losing their funds. This was very commendable,” the source said.

The CBL source added that the recent intervention by the Central Bank of Liberia aimed to reduce the total impact of the payment of US$14.9 million made to the legacy depositors of the defunct FIBLL by SIB.

An internal memo from Christopher Walace, Senior Director of Economic Policy, dated May 24, 2024, and addressed to Governor J. Aloysius Tarlue Jr., stated: “The Board of Governors of the CBL has processed a resolution concerning CBL’s liquidity support to Sapelle International Bank Liberia Ltd (SIBLL). For this reason, I kindly seek your approval and instructions for the CBL’s Operations Department to proceed with the implementation of the instructions as contained in the Board of Governors’ resolution.” The request was subsequently honored.

When contacted for comment, a senior officer at SIB, who preferred to remain anonymous, said: “SIB remains strong and viable. The bank is well-capitalized and meets all capital adequacy requirements in Liberia. Additionally, the bank is introducing innovative products and services in the digital and electronic space.

“Currently, we operate in 17 locations across Liberia and are considered one of the fastest-growing banks in the country. With a staff strength of 157, SIB is expected to continue serving the Liberian people for a long time, consistently introducing innovative products and services to better meet their needs.”

MONROVIA – In 2019, around the July 26 Independence Celebration, the Central Bank of Liberia made several disbursements totaling US$730,000 to the Liberia National Police, the National Security Agency, and the Ministry of State for Presidential Affairs without any approved policy.

By Lennart Dodoo, ldodoo@frontpageafricaonline.com

An audit by the General Auditing Commission (GAC), the nation’s supreme audit body, discovered that on July 24, 2019, US$200,000 was disbursed to the Liberia National Police as the Bank’s contribution for the July 26 celebration. On July 23, US$300,000 was disbursed to the Ministry of State for the same purpose. Additionally, US$80,000 was disbursed by the Bank to the National Security Agency (NSA) for “special security operations.”

These disbursements took place in 2019 when the Bank was in transition, with Deputy Governor Nyemadi D. Pearson (Operations) in charge of the Bank, FrontPageAfrica gathered. The Deputy Govenor for Operations also oversees all financial transactions/disbursements of the Bank.

The GAC’s audit observed that these amounts were unsolicited by the receiving entities, which could be a recipe for financial malpractices.

“During the audit, we observed that without an approved policy, management made several material unsolicited payments to institutions and individuals in excess of approved amounts,” the audit noted.

The General Auditing Commission highlighted that the Bank’s management must provide explanations with supporting documentation for making these payments without budgetary allocations. The GAC also recommended that the Bank’s management should, in its Corporate Social Responsibility (CSR) policy, describe what payments are allowed under CSR programs and place a threshold for different levels to ensure safeguards against management’s override and abuse of the program.

FrontPageAfrica gathered that these disbursements were made when the current Governor of the Bank had yet to be appointed by the former President.

The audit is part of an ongoing audit commissioned by President Joseph Boakai, which covers the six-year period of former President George Weah’s administration (2018 to 2023).

It can be recalled that in April this year, the Governor of the Central Bank, J. Alloysius Tarlue, was asked by President Boakai not to form part of the delegation for the Spring Meeting in Washington, D.C., in order to assist with the forensic audit of the Bank.

The President’s directive followed a request from Governor Tarlue seeking approval from the President for the travel of himself along with Mr. James B. Dennis, a Board member, Madam Nyemadi Pearson, Deputy Governor for Operations, and Mr. Musa Dukuly, Deputy Governor for Economic Policy.

“The President has given approval for members of the delegation, but given the ongoing forensic audit endorsed by the International Monetary Fund and the Government audit commissioned by the General Auditing Commission at the Central Bank, the President directs that you stay in the country,” stated the Minister of State for Presidential Affairs, Sylvester Grigsby, in a communication to the Governor.

Executive Mansion sources familiar with the development informed FrontPageAfrica that the President’s decision to ask Governor Tarlue not to attend the Spring Meeting is due to the near completion of the forensic audit, which might necessitate the Governor being present to provide some clarity to the President.

MONROVIA – President Joseph Boakai’s mandate for the General Auditing Commissin (GAC) to audit the Central Bank of Liberia (CBL) has sparked a debate over the legality of the President’s mandate, the authority of the GAC to audit the CBL and the CBL succumbing its independence to the Executive.

By Lennart Dodoo, ldodoo@frontpageafricaonline.com

Acting on President’s madate, the GAC recently dispatched an engagement letter to CBL, outlining the audit’s parameters and submitting a series of document requests to support the comprehensive audit.

Debating the Functions of the GAC

The debate surrounding the functions of the General Auditing Commission (GAC) in Liberia hinges on the interpretation of its mandate as outlined in the GAC Act, particularly in relation to Section 2.1.3 and Section 5 of the Act.

Section 2.1.3 of the GAC Act establishes the duties of the Auditor General, stating that the Auditor General shall be responsible for auditing the public accounts and public funds of Liberia. It empowers the Auditor General to carry out audits and inquiries of public entities and funds owned or controlled by the government, with the aim of enabling reporting as required by the Act. The section also grants the Auditor General the authority to determine the scope, timing, and type of audits to be conducted, emphasizing the independence of the Auditor General in performing operational duties.

However, legal proponents argue that the GAC’s authority to conduct comprehensive audits, such as the one on the Central Bank, may not be justified based on the definition of public accounts or public funds provided in Section 5 of the Act. According to Section 5, public funds or money include resources in the custody or control of the state, such as taxes, user fees, interest, dividends, proceeds from property sales, royalties, fines, grants, and debts due to the state, among others. It also establishes the Consolidated Fund as the repository for all revenues raised or received by the state, except for those specifically designated for other funds or purposes.

The contention arises from whether the Central Bank’s operations fall within the purview of “public accounts” or “public funds” as defined by the Act. While the GAC Act grants broad authority to the Auditor General to audit public entities and funds controlled by the government, the specific delineation of what constitutes public funds appears to limit the scope of the GAC’s audit jurisdiction.

The debate underscores the need for clarity in interpreting the mandate of the GAC and delineating the boundaries of its audit authority vis-à-vis the operations of entities like the Central Bank.

Acting Under Authority

Also Section 5.5 of the GAC Act outlines stringent criteria for accepting external requests for audit. The section unequivocally states that requests from entities outside the GAC should generally not be accepted, emphasizing the importance of maintaining the Commission’s autonomy. However, it makes exceptions for formal requests from members of the Legislature or the President. In such cases, the Auditor General is mandated to carefully evaluate whether the requested audit aligns with the GAC’s legal mandate and can be executed within its allocated resources.

Moreover, Section 5.5 serves as a reminder of the limitations imposed by law on the GAC’s authority.

How The CBL Is Audited

Critics argue that the President’s order contravenes the provisions of the CBL Act, which outline the CBL’s independence and its sole authority to conduct internal and external audits. Moreover, they point to specific sections within the Act that mandate regular audits by the Chief Internal Auditor of the CBL, appointment of external auditors by the Board of Governors, and oversight by an independent Audit Committee.

The Act’s provisions, including those governing audits, are designed to safeguard the CBL’s independence from undue influence or interference, including from the executive branch.

The CBL Act’s supremacy clause also stipulates that in case of conflict with other laws, the Act’s provisions relating to the CBL’s authority and monetary policies shall prevail.

Proponents of the audit argue that the President’s directive is within his constitutional powers to ensure transparency and accountability in government institutions. They contend that while the Act grants autonomy to the CBL, it does not preclude external scrutiny, especially when concerns arise regarding financial management and accountability.

Rep. Foko Calls for Clarity

Meanwhile, in a letter addressed to the Speaker of the 55th National Legislature, Hon. Frank Saah Foko, Jr., a member of the House of Representatives, has  raised legal concerns regarding the President’s authority to order the GAC to conduct audits of institutions like the CBL.

The letter, dated February 24, 2024, Rep. Foko meticulously analyzed relevant legislation, including Acts pertaining to the duties and functions of the Auditor-General and the General Auditing Commission, as well as amendments to the Public Financial Management Act and the Act establishing the Central Bank of Liberia.

According to Rep. Foko’s analysis, the President lacks the legal authority to unilaterally mandate audits of institutions such as the CBL. Rep. Foko cited several sessions of the GAC and the CBL Acts.

He, therefore, indugled Speaker Fonati Koffa to invite the Legal Advisor to the President to provide clarity on the President’s request to the GAC to audit the Central Bank.

Monrovia – In a move aimed at modernizing the nation’s currency system and enhancing economic stability, the Central Bank of Liberia (CBL) has officially announced the termination of the legal tender status of old Liberian dollar banknotes printed before 2021. This decision, in accordance with Section 25 of the Amended and Restated Act of the CBL of 2020, is set to take effect on March 31, 2024.

The CBL’s decision means that, following the March 31 deadline, all banknotes belonging to the Liberia Series One (LS1) and Liberia Series Two (LS2) categories will no longer be accepted in economic and financial transactions. LS1 banknotes, which include denominations of L$5, L$10, L$20, L$50, and L$100, were printed between 2003 and 2009. On the other hand, LS2 banknotes, featuring denominations of L$5, L$10, L$20, L$50, L$100, and L$500 with images of three men in traditional attire on the front side, were printed in 2016 and 2017.

This initiative is part of the gradual transition to the new family of Liberian dollar currency, authorized by the 54th National Legislature in its Joint Resolution of May 2021. The new currency, totaling L$48.734 billion, is currently being introduced into the economy and will be the sole valid legal tender after the March 31 deadline.

To facilitate a smooth transition, the CBL has implemented a 12-month exchange period during which citizens are encouraged to exchange their old banknotes for the new currency. Individuals still in possession of old banknotes after the deadline will be able to exchange them at the nearest Central Bank facilities, commercial bank offices, branches, agents, and rural community finance institutions (RCFIs).

To ensure the availability of the new banknotes and coins across the country, the CBL will collaborate with commercial banks and maintain adequate supplies at its cash hubs nationwide. In addition, the central bank is actively engaging with the public through various communication channels, including public service announcements, jingles, radio shows, and in-person interactions. These efforts aim to enhance public understanding and awareness of the currency replacement exercise.

For any inquiries or concerns related to the exchange exercise, the public is encouraged to contact the CBL Hotline at 5455.