–CBL Clarifies; Refutes Claim Of Unscrupulous Payment
The Central Bank of Liberia (CBL) has recently come under critique for allegedly distributing US$730,000 to the Liberia National Police (LNP), National Security Agency (NSA) and the Ministry of State (MOS) as means of contributing to the successful conduct of the 2019 Independence Day celebration.
According to the allegation, the then Acting Executive Governor of CBL, Nyemadi Pearson, unscrupulously and without any authorization disbursed US$730,000 to the government institution on July 22 and July 24. Of the amount, US$80,000 was disbursed on August 13, 2019 for payment regarding external security operations.
However, the Central Bank of Liberia (CBL) has clarified the allegation, acknowledging that the payments were made to the named institutions as part of the bank’s corporate social responsibility (CSR), but vehemently refuted any insinuations or assertions that they were made unscrupulously.
“The payments were made by the CBL based on the instruction of the then Executive Governor, Mr. Nathaniel R. Patray, as part of the Bank’s Corporate Social Responsibility,” the CBL clarified in a press release.
The management of the CBL further clarified that the disbursements in question were made in support of the National Independence Day celebrations, which historically require substantial logistical and security support. According to the CBL, the intent was to ensure a safe and successful event for all Liberians.
“CBL recognizes the lack of oversight at the time in not having a formal documented policy guiding these specific disbursements. However, in 2020 CBL developed a comprehensive Corporate Social Responsibility (CSR) Policy that clearly outlines permissible payments and establishes thresholds for making CSR payments.
“While the audit refers to these payments as unsolicited, the CBL asserts that these funds were disbursed in response to implicit operational needs to ensure the success of the July 26 Independence Day Celebrations,” the CBL release noted.
The CBL said it welcomes requests for support under its Corporate Social Responsibility Program, but at the same time the bank on its own initiative can recognize and support national needs, like natural disasters, support for the less fortunate in society, etc.
The release recommitted the current CBL administration,under Governor J. Aloysius Tarlue, Jr., to transparency and accountability. “In line with this commitment, the CBL is fully cooperating with the on-going GAC audit commissioned by President Joseph Boakai.
“The bank is committed to upholding the highest standards of financial management and governance. The bank appreciates the oversight provided by the GAC, and will continue to work diligently to address concerns from the on-going audit.”