Monrovia – The coffers of two major commercial banks operating in Liberia, SIB Liberia Limited and International Bank Liberia Limited, are said to be drying out, prompting customers to seek withdrawals, FrontPage Africa has gathered.
By Gerald C. Koinyeneh, [email protected]
SIB Liberia Limited
SIB Liberia, owned by a Ghanaian millionaire, has recently made headlines for all the wrong reasons. The bank is reportedly on the brink of bankruptcy. This trouble started in 2020 when the bank decided to take over the First International Bank (FIP), assuming its liabilities totaling around US$23 million.
The bank paid US$14.7 million of the legacy depositors’ liabilities inherited from the defunct FIBLL and relied on the Central Bank to pay the remaining US$8.5 million to the legacy depositors, some of whom had threatened legal action against the bank.
It had complained that paying US$14.7 million out of its working capital significantly impacted its cash flows. Accordingly, the bank appealed to the CBL to intervene in repaying the outstanding liabilities to the legacy depositors, arguing that the debt rightfully belongs to the Government of Liberia and the Central Bank.
The CBL Board of Governors, after a thorough review of the matter over two years, upheld the bank’s request and approved the payment of the outstanding legacy deposit liabilities of US$8 million. However, this payment had not been executed at the time of the letter.
The Green Revolution of Liberia, a Pro-Democracy Movement/ Civil Society Organizations, present its compliments and wish to appraise you of numerous complaints in the public considering staggered payment of withdrawals, which is boarder on liquidity crises at your bank. We were confronted a forth night ago by some citizens of the difficulties in getting withdrawals at your bank. To this effect, we have conducted an inquiry into said insolvency that has got in our procession a bail out of US$8 Million (EIGHT MILLION UNITED STATES’DOLLARS by the CBL).
Joseph J, T. Barclay, Vice Chairman Legal Affairs, the Green Revolution of Liberia
Due to the delay in executing the board’s mandate, the bank sought the president’s intervention, stating, “As a bank, we have done all we can to maintain the nation’s confidence in the financial industry. Without this effort, the country would have experienced significant damage to its financial sector. We have made significant strides to ensure sustained operations and seek your intervention to ensure these gains are not eroded.”
Did the CBL Pay?
The Board of Governors of the CBL passed a resolution on May 17 authorizing the payment of US$8 million. Despite this, customers are reportedly still finding it difficult to withdraw their money.
Public Concerns
The Pro-Democracy Movement, The Green Revolution of Liberia, expressed concern over “numerous complaints in the public regarding staggered payment of withdrawals, which points to a liquidity crisis at your bank.” The group stated, “We were confronted a fortnight ago by citizens experiencing difficulties withdrawing from your bank. Consequently, we conducted an inquiry into the insolvency issue, which revealed documents indicating a bailout of USD8 million.”
International Bank Liberia Limited (IBLL)
Documents in FrontPage Africa’s possession show that IBLL’s total assets amount to US$177,770,024, while total liabilities are US$157,740,961. Following the appointment of its Chief Executive Officer Henry Saamoi by President Joseph Nyuma Boakai, reports emerged that the bank had gone bankrupt. However, the bank debunked this claim, asserting that it is in good standing.
The management of IBLL clarified that former CEO Henry Saamoi completed his term of service in May 2024 before his recent appointment as Acting Executive Governor of the CBL by President Boakai, following the suspension of Governor Alloysius Tarlue.
According to IBLL, when Saamoi became CEO in 2012, the bank’s total assets stood at US$88,655,506, and it operated out of rented buildings. By the time he left, total assets had grown to US$201,073,999, and the bank had constructed three buildings of its own, including a state-of-the-art headquarters between 11th and 12th Streets.
