-Following GAC Audit Findings

By Jerromie S. Walters

President Joseph Boakai has suspended Aloysius Tarlue, the Governor of the Central Bank of Liberia (CBL), in light of a recent audit report released by the General Auditing Commission (GAC). The audit, which examined the bank’s operations from January 1, 2018, to December 31, 2023, uncovered alarming instances of non-compliance and governance failures. This was made known by Information Cultural Affairs and Tourism Minister Jerolinmek Piah at a press briefing on Tuesday, July 30, 2023.

The GAC’s report outlined a series of serious violations, including breaches of the 1986 Constitution, the Public Procurement and Concessions (PPC) Act of 2005, and the CBL Act of 1999. Among the most concerning findings was the unauthorized issuance of government loans totaling $83.05 million, which were granted without the necessary legislative approval. Additionally, procurement irregularities exceeding $11 million and unauthorized disbursements of $1,084,027 for corporate social responsibility initiatives were also highlighted.

The audit further pointed to critical deficiencies in the management of staff contracts and personnel records, notably the failure to withhold and remit taxes and contributions as required by law. These findings raise serious questions about governance and regulatory compliance within the CBL, underscoring an urgent need for corrective measures to restore integrity and public trust in the institution.

In response to the audit, the GAC has announced plans to submit its findings to the Joint Legislative Public Account Committee, with recommendations for further action directed to the Executive. It is essential to note that the audit findings are preliminary and do not automatically imply guilt on the part of the CBL or its officials. Additional investigations may be conducted based on the audit’s recommendations.

Also, another audit conducted by the General Auditing Commission (GAC) on the Liberia Water and Sewer Corporation (LWSC) for the fiscal years ending June 30, 2019, to June 30, 2021, recently unearthed substantial financial discrepancies, including the collection of only $2.8 million out of $23.4 million in billed amounts for FY 2021, which is merely 12%.

Key findings show that Customer bills were not submitted on time, and there was no evidence of regular enforcement to collect outstanding debts. Payments were manually posted against bills leading to incomplete records of bills generated and collected. Several items amounting to over $300,000 were paid without evidence for bid documents. Major customers, including Monrovia Breweries, Liberia Coca-Cola Bottling Company, and the United States Embassy, did not confirm balances on LWSC’s accounting records. 

Also, non-remittance of personal income tax deductions amounting to ($291,411.70) and social security deductions ($157,164.84) to LRA and NASSCORP, respectively, was identified. Meanwhile, another audit by the General Auditing Commission (GAC) has uncovered widespread non-compliance at the Central Bank of Liberia (CBL) for the period spanning from January 1, 2018, to December 31, 2023.

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