Monrovia —The General Auditing Commission (GAC) has released a compliance audit report detailing significant financial irregularities at the Central Bank of Liberia (CBL) during the period from January 1, 2018, to December 31, 2023. The findings highlight a range of compliance issues that affect the bank’s operations.
By Selma Lomax [email protected]
Excessive Expenditures and Deficit Financing
The GAC observed that the CBL management exceeded approved expenditure limits from Fiscal Year 2018 to 2022 by approximately $19.31 million. The audit also found that the approved budget expenditure projections consistently surpassed revenue projections, indicating a pattern of deficit financing.
Improper Over-the-Counter Transactions
The audit report disclosed that CBL management cashed several checks over the counter, violating standard banking regulations. Examples include payments of $8,500 to Vision Pro and $8,000 to the West Point Youth Association. According to regulations, institutional checks should be deposited, not cashed directly.
Unauthorized Government Payroll Financing
The GAC identified unauthorized financing activities, including a $50.2 million disbursement to the Government of Liberia’s payroll account on November 30, 2023, and an additional $32.85 million on December 23, 2023. These transactions lacked legislative ratification, contrary to Article 34 d (iii) of the 1986 Constitution of Liberia and Section 46.2 of the CBL Act of 1999. Additionally, there was no evidence of approval from the CBL Board of Governors.
Staff Loan Default Irregularities
The audit found significant issues with the management of non-performing staff loans, totaling US$472,053 for separated staff and US$240,634.80 for seconded staff. Notable defaulters include former Finance Minister Augustine K. Ngafuan, owing $5,091.29, and Sinoe County Senator Crayton O. Duncan, owing $44,924.43. The GAC noted a lack of repayment, absence of legal action, and missing documentation for these defaulted loans.
Potential Money Laundering Concerns
The GAC report raised concerns about potential money laundering, noting that CBL facilitated payments totaling L$1.946 billion and US$178.33 million above approved thresholds. These payments, made to institutions via individual names, included large sums such as US$121 million for the National Security Agency and US$23 million for the Executive Protection Service.
Unapproved Legal and Consultancy Expenses
Significant legal expenses amounting to US$742,120 were disbursed to staff for subsequent payment to consultants, despite the CBL having an internal legal department and contracted legal firms. Additionally, unsolicited payments exceeding approved amounts were made, including US$1,084,027 for Corporate Social Responsibility initiatives.
Lack of Competitive Bidding in Procurement
The report highlighted that contracts totaling US$11.08 million were awarded without competitive bidding, lacking appropriate procurement documentation such as bid evaluation reports and contract award notices.
Conclusion and Recommendations
The GAC concluded that the CBL’s operations were not in compliance with the 1986 Constitution of Liberia, the Public Procurement and Concessions Act of 2005, and other relevant regulations. The GAC urged the House of Representatives and the Liberian Senate to urgently implement the recommendations provided in the report.
The findings highlight significant lapses in financial management and oversight at the CBL, calling for immediate corrective actions.
