SINCE THE DEMNING audit report of the Central Bank of Liberia (CBL) was released by the General Auditing Commission (GAC) of Liberia, which accused the CBL Executive Governor Jolue Aloysius Tarlue and the CBL management of exceeding approved expenditure limits from Fiscal Year 2018 to 2022 by approximately $19.31 million, there is a heightened political tension in the country. The audit found that the approved budget expenditure projections consistently surpassed revenue projections, indicating a pattern of deficit financing. In a letter addressed to the Senate Pro Tempore Sen. Nyonblee Karnga-Lawrence of and Speaker Hon. Cllr. J. Fonati Koffa, the Auditor General of Liberia Mr. Garswa Jackson called for immediate response to the audit recommendations given the gravity of the impropriety of the CBL management team.
WHILE THE NATIONAL LEGISLATURE that is clothed with the authority to provide oversight as well as the power to legally remove the CBL Executive Governor is yet to take official action, on July 30th, President Joseph Nyuma Boakai Sr announced the suspension of the Bank Governor and subsequently on July 31 appointed an acting Bank Governor Henry Saamoi. The suspension of the Governor Tarlue was followed by a swift condemnation by the Political Leader of the leading opposition party the CDC former President George M. Weah. In a press conference, former President Weah classified President Boakai action as illegal and an attempt to launch witch-hunt on a number of his past officials. He also accused President Boakai of endangering the peace, and that his party will pursue all legal and political means to resist his actions.
WALKING IN ERROR, President Boakai has once again breach established laws governing autonomous institutions as was the case that was appealed before the Supreme Court concerning tenured positions. In April, The Supreme Court delivered a landmark ruling in the dispute over replacing officials with tenure by President Joseph Boakai. In a unanimous judgment read by Chief Justice Sie-A-Nyene Yuoh, the Court said the law providing tenure for some Liberian officials absolves the president of his power to appoint and dismiss those officials at his pleasure. “Therefore this court sees no reason to declare said Act unconstitutional as the Minister of Justice has urged us to do,” she said. Notwithstanding, President Boakai proceeded to suspend those in whose favor the court ruled, and replaced them with acting officials that the court had ruled that he should recalled. This perhaps, has emboldened President Boakai to do same to the CBL Governor, but this case is much more complicated.
CBL AUTONOMY AND ACCOUNTABILITY: According to the amended CBL Act of 2020 titled: “An Amended and Restatement of the Act Establishing the Central Bank of Liberia,” the office of the President does not have the legal authority to discipline or remove the Governors of the CBL. Part II Establishment of the Central Bank Section 4(1), the CBL is accountable solely to the National Legislature; 4(2) the CBL (governors) “…shall not take or seek to take instructions from any person or entity, including government entities in the exercise of their functions”; and 4(3) the CBL (governors) shall appear twice before the Joint Committee on Banking and Currency of both houses, February and July, respectively…and once each year (August) before separate plenaries of the House of Representatives and the Senate.” These provisions excuses the office of the President from direct oversight of the CBL.
REMOVAL OF GOVERNORS: The CBL Act of 2020 is clear as to how the Executive Governor and non-executive Governors can be removed from office for cause. Part IV Administration and Management
Section 14(2) Provides for automatic removal if a governor is found in violation of 4(1) of PartIV with violations including: (1a) an official or salary employee of a government ministry or other public entity, except a teacher or professor in a university; (1b) a official of a political party; or (1c) an official or employee of a financial institution or a beneficial owner of an equity interest in a financial institution. Apart from automatic removal, Section 14 (4) Provides for removal by the Senate only upon a bill of impeachment by the House of Representatives upon any of the following reasons:
(a) Gross breach of duty;
(b) Misconduct in office;
(c) Conviction of a felony;
(d) Being declared bankrupt;
(e) Disqualified from practicing in his profession in Liberia by order of a competent authority made in respect of him personally; and
(f) Is adjudged or otherwise declared to be a person of unsound mind or incapable of properly performing the functions of the office owing to ill health.
DESPITE THESE LEGAL PROVISIONS, it is not clear whether or not Governor Tarlue will challenge President Boakai’s action to suspend him by appealing to the Supreme Court. In light of heightened political tensions and the need to maintain the country’s peace and security within straight obedience of the rule of law, here are a number of recommendations for the Boakai administration:
1. Allow the Legislature to exercise their oversight responsibility according to the CBL Act as amended in 2020;
2. Respect the CBL’s Act and the importance of its independence;
3. Encourage civil society organizations to monitor CBL activities and advocate for compliance with the law;
4. Seek support from international financial institutions to strengthen the CBL’s governance framework; and
5. Consider amending the CBL Act to provide more specific grounds for removal and expedite the process while maintaining due process safeguards.
By following these recommendations, Liberia can enhance the CBL’s effectiveness, protect its independence, and contribute to overall peace and stability.
Dr. Clarence R. Pearson, Sr. is a Liberian clergy and social scientist with strong interest in advancing global peace, human rights, a safe planet, and social equity. He holds a BA in Theology, and MA with distinction from the Kofi Annan Institute for Conflict Transformation, University of Liberia. He also graduated with honor from the Louisiana Baptist University and Seminary, Shreveport, Louisiana, USA with A PhD in Psychology and Counseling. Dr. Pearson is a social researcher, an educator, and an author. He has over 29 years of practical professional experience in post-conflict peace-building, recovery, and development with emphasis in both the public and private sector.