MONROVIA: The State-owned General Auditing Commission (GAC), the nation’s largest public audit firm, revealed that the Central Bank of Liberia (CBL), has not only failed to meet legal requirements but also out of compliance in several other areas, including government borrowing from the CBL.
These startling revelations were contained in the latest audit report released by the GAC, and signed by the Auditor General of Liberia, P. Garswa Jackson.
The report detailed multiple irregularities discovered by the GAC.
“As asserted in our findings, the loan was obtained to settle personnel expenses which were budgeted for and does not qualify for emergency and disaster circumstances,” said AG Jackson.
The CBL, on November 23, 2023, financed the government payroll account in the amount of US$50.2 million for salary payments “without evidence of ratification” by the Legislature as required by the Constitution of Liberia and other statutory provisions.
According to the audit report, officials conceded that the loan granted to the Government of Liberia (GoL), was intended for payroll transactions as requested by the Executive Branch and not for settling operational expenditures as contained in the audit report.
The CBL is undergoing a comprehensive audit review, aimed at providing information on whether the audited public entity adheres to legislative decisions, laws, policies, and established codes.
Given the many unknowns, AG Jackson was not comfortable recommending that CBL management provided substantive justification for facilitating and disbursing the loans to the government for settling its operational and personal expenditures without the necessary approval by the Legislature and the CBL Board of Directors.
“Going forward, management should ensure all disbursements of loans from the CBL to the government are consistent with the CBL Act of 1999, as amended and restated in 2020, and subsequent ratification by the Legislature,” the GAC audit report recommended.
CBL’ Executive Governor, Aloysius Tarlue, now indefinitely suspended without pay by President Joseph Nyuma Boakai, approved an additional US $32.85 million in financing on December 23, 2023.
The additional amount was intended to subsidize further salary payments and uphold commitments to commercial banks, without legislative approval, GAC indicated.
The audit also found several significant incomprehensible and unsupported entries, amounting to $381,443,063.15, periodically increasing the Government of Liberia’s consolidated account loan.
The areas of possible noncompliance described in the report include Article 34 d (iii) of the 1986 Constitution of Liberia and Section 45.2 of the CBL Act of 1999, as amended and restated in 2020.
According to the GAC, the Legislature will review the report to understand why the CBL handled these aspects of its operations and whether it meets requirements for operations in an emergency.
The Auditor General maintains that the CBL’s claim that contracts supporting transactions related to the significant incomprehensive and unsupported entries, amounting to $381,443,063.15, were made available to the audit team, “was not supported by documentary evidence.”
“Therefore, we maintain our findings and recommendations,” said Jackson.