Monrovia, Liberia – Many wonder who is advising President Joseph Boakai or if he is just using the so-called fight against corruption as a pretext to make room for his cronies in government. President Boakai appointed Mr. James B. Wilfred as Acting Deputy Governor for Operations at the Central Bank of Liberia (CBL). At a time when the CBL is purportedly embroiled in a moral and financial crisis, this nomination is not only dubious but an affront to the entire concept of good governance and accountability.
Following a harsh compliance audit by the General Auditing Commission (GAC), which exposed serious shortcomings in the CBL’s internal controls, mainly in the handling of staff loans, Mr. Wilfred was appointed. The audit revealed that Mr. Wilfred is one of the bank employees who has defaulted on loans, especially failing to return a sizeable sum of USD 90,933.24, which resulted in the suspension of Governor J. Aloysius Tarlue. His financial recklessness exposes a significant error in judgment on the part of the President and disqualifies him from a top position in the country’s central bank.
Mr. Wilfred’s appointment could not have come at a worse time. The GAC’s audit report, which uncovered multiple anomalies in the administration of staff loans, has left the CBL in a state of turmoil. The results showed that there was no proof that the bank’s management had, as required by policy, applied separated employees’ provident funds or severance pay against their outstanding loan obligations. Furthermore, the absence of repayment plans and legal measures taken against defaulters revealed a concerning lack of responsibility and care on the part of the CBL.
In light of this, it is equally troubling that the President chose to accept the resignation of Ms. Nyemadi D. Pearson, the former Deputy Governor for Operations, without resolving these fundamental problems. Shortly after the audit report was made public, Ms. Pearson resigned; her move appears to have been more motivated by political expediency than by a sincere desire for reform. Her resignation under these circumstances is more indicative of a quid pro quo agreement than of a strong commitment to accountability.
An extensive examination into Ms. Pearson’s involvement in the mismanagement revealed by the GAC ought to have been prompted by her resignation as a senior official. Rather than addressing these concerns openly, the administration chose to accept her departure in a quiet manner, which has led to speculations that it may be more advantageous to ignore them. This is especially troubling because the CBL desperately needs strong leadership in this chaotic period.
The administration’s decision to replace Ms. Pearson with Mr. Wilfred, an alleged defaulter, sends a very unsettling message: if it benefits them immediately, they are willing to ignore major financial malfeasance. The ideals of anti-corruption and good government that President Boakai has openly supported are directly violated by this. When the President assigns someone with such a dubious financial background to a pivotal role in the central bank, how can he possibly claim to be fighting corruption and advancing transparency?
This issue touches on the more general structural issues that the GAC audit has shown within the CBL, in addition to Mr. Wilfred’s personal financial irresponsibility. The audit report disclosed that the non-performing loan portfolio of the bank for staff who were separated and seconded amounted to around USD 713,000. This amount could have a noteworthy effect on the bank’s financial stability. A significant governance issue at the CBL is reflected in the absence of internal controls, such as the Loan Review and Evaluation Committee’s inability to hold regular meetings and its inability to take legal action against defaulters.
