President Joseph Nyumah Boakai has flexed his political muscle by suspending Central Bank of Liberia (CBL) Executive Governor Aloysius Tarlue from office without pay over a GAC audit that has left more questions than answers.
The General Auditing Commission (GAC), which refused to honor supporting documents from the CBL during the auditing period, alleges that Governor Tarlue was not in compliance and failed to perform his duties during the period under review.
The Minister of Information, Cultural Affairs, and Tourism, Jerolinmek Piah, announced the suspension during a press briefing in Monrovia on Tuesday, July 30, 2024.
He revealed that the GAC's compliance audit, covering the fiscal period 2018 to 2023, found that under Governor Tarlue's leadership, the CBL failed to adhere to the Central Bank Act of 1999, as amended in 2020, and the Liberian Public Financial Management Act of 2011, along with other relevant legislations and CBL policies.
The audit also noted that the CBL management did not provide its accounting software and the 2023 financial statements to the GAC. As a result, President Boakai has suspended Tarlue indefinitely, pending an investigation into the audit findings.
However, this paper has email exchanges between the CBL and the GAC over the failure of the GAC to accept supporting documents relating to claims made by auditors in their audit reports. The motive for their rejections of those supporting documents has not been made clear.
In related news, Minister Piah announced that President Boakai has appointed three new members to the Central Bank Board following the expiration of the previous members' tenures on July 21, 2024. The new appointees are Mr. George H. Guddy, Joseph Robertson, and Counselor Ebenezer Gibson.
In a transmittal letter to the leadership of the 55th Legislature, especially the Speaker and the Senate Pro-Tempore, the Auditing General of Liberia, P. Garsaw Jackson, conveys that the GAC has undertaken a compliance audit of the Special Reconciliation on the Consolidated Fund Account Balances of the Government of Liberia maintained with the Central Bank of Liberia as of January 17, 2024, and January 19, 2024, respectively.
The communication continues that the audit was conducted under the Auditor General's statutory mandate, as provided for under Section 2.1.3 of the GAC Act of 2014.
"Findings conveyed in this report have been formally communicated to the Managements of the Central Bank of Liberia (CBL) and the Ministry of Finance and Development Planning (MFDP). Where the Managements have provided responses on the audit findings, these have been evaluated and incorporated in this report", the Auditor-General writes.
Adverse Conclusion
The GAC concludes that based on the audit work performed, because of the significance of the non-compliance matter noted in the basis for the conclusion, the subject matter is not, in all material respect, in compliance with Article 34 d(iii) of the 1986 Constitution of Liberia, the CBL Act of 1999 as Amended and Restated 2020, the PFM Act of 2009 as Amended and Restated 2019 and its Regulations and other relevant authorities, policies, and procedures.
Basis for Conclusion
"Management did not prepare periodic/regular reconciliation of the Transitory Revenue Accounts domiciled at commercial banks. Management did not ensure a timely/daily sweep of GOL revenues from the Transitory Revenue Accounts domiciled at commercial banks to the GOL Consolidated Account at the CBL. Management did not ensure that borrowing from the CBL for US$ 83.05 million to finance the Consolidated Fund Account on December 22, 2023, was consistent with the CBL Act of 1999 as Amended and Restated in 2020 and ratified by the National Legislature. Consolidated Fund Account had several stale/outstanding cheques amounting to US$9,144,138.95 and L$457,680,522.71 as of January 17, 2024, and then US$11,836,676.49 and L$457,680,522.71 as of January 19, 2024", the Commission uncovered.
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Background of the audit
On 8th February 2024, the Joint Committees of the Liberian Senate comprising Public Accounts Audits and Expenditure Committee (PAC) and Banking and Currency Committee requested the Auditor General to perform a Special Reconciliation audit on the net account balances of the Consolidated Fund Accounts as at January 17 and 19, 2024. The purpose of the proposed audit was to establish the true balances of the Consolidated Fund amidst different values of the balances of the Consolidated Fund, as published by the former and current Administrations of the Government of Liberia. Editing by Jonathan Browne
