The Central Bank of Liberia (CBL) has issued a statement addressing recent damaging reports from the General Auditing Commission (GAC) that allege defaults on loans by former and seconded staff members, including Mr. James Wilfred.
Mr. Wilfred, who was seconded to the West African Monetary Institute (WAMI) in Accra, Ghana, and recently appointed by President Joseph Nyuma Boakai as Acting Deputy Governor for Operations, is among those mentioned in the audit.
According to a release from CBL management, the Bank is aware of Mr. Wilfred’s loan repayment status, which has been irregular due to his secondment with WAMI.
However, the CBL notes that Mr. Wilfred has sufficient collateral in the form of his provident fund, severance benefits, and property.
The CBL’s records indicate that, after offsetting Mr. Wilfred’s $90,000 loan against his collateral, the Bank actually owes him money.
The statement further clarifies that other former and seconded staff members cited in the GAC report also have adequate provident funds and severance payments held by the CBL, which are sufficient to recover the loans in question.
In addressing these issues, the new CBL Management has initiated a review to assess the loan status of former employees.
This review aims to guide the Bank’s strategy for loan recovery.
The CBL assures the public that all loans extended to seconded staff are fully collateralized by provident funds, severance payments, and other assets, ensuring the security of the facility.
The CBL remains committed to maintaining prudent financial practices and safeguarding the interests of all stakeholders.
The Bank’s primary objectives include promoting price stability, contributing to financial stability, and supporting the government’s economic policies within its statutory framework.
Despite the recent damaging GAC reports, which have raised questions about the integrity of the banking system, the CBL emphasizes its role as the country’s central monetary authority.
It remains dedicated to regulating and supervising the financial system while managing the nation’s foreign exchange reserves.
The controversy surrounding the GAC audit underscores ongoing concerns about financial malfeasance and ethical breaches within the banking sector, prompting calls for increased scrutiny and transparency.
