The Republic of Liberia was recently brought to a state of confusion when President Joseph Nyuma Boakai, while delivering his State-of-the-Nation Address, disagreed with ex-President George Manneh Weah over what was left in both the government consolidated account and the national reserves. This has since raised concern about the sincerity, integrity and the truthfulness of the two national leaders, and who should earn the public trust and respect.
In his farewell speech to the nation on his last working day, Friday, January 19, 2024, ex-President Weah informed the public that his government was leaving the economy in a better state than his administration met it. He disclosed that in 2018, he took over the economy with only US$7 million in the government’s consolidated account and about US$94 million in the CBL reserves; but that as of January 19, 2024 he was leaving with US$40 million in the account and US$222.7 million in the reserves.
Weah’s disclosure was, however, blatantly debunked by President Boakai during his first annual address, stating that the Weah administration left US$20.5 million in the consolidated account and US$220 million in the national reserves. President Boakai pointed out that the figures he released were as of December 31, 2023, and that Weah’s figures are without facts.
The Consolidated Fund Account is owned by the Government of Liberia (GOL) and managed by the Ministry of Finance and Development Planning, while the Central Bank of Liberia (CBL) serves as the custodian of the account. As Liberia runs a dual currency regime, the consolidated account has both United States dollar and Liberian dollar components, and the CBL makes available a statement of account to the government everyday, updating the state authority of the transactions of the account and its daily balances.
The Hot Pepper investigation suggests that the financial sector is guided by the Public Financial Management (PFM) Act, which sets the fiscal year from January 1 to December 31.
Interestingly, the paper’s findings revealed that, as of December 31, 2023, the amounts in the consolidated account were US$16.138 million (sixteen million one hundred thirty-eight thousand United States dollars) and L$1.024 billion (one billion and twenty-four million Liberian dollars). If one converts L$1.024 billion to United States dollars using the CBL’s approved rate as of December 31, 2023, 188, the amount will sum up to US$5.446 million. When the US$5.446 million, which is the amount gotten from converting the Liberian dollar component, is added to the United States dollar component, which is US$16.138 million, the total amount will sum up to US$21.584 million (twenty-one million five hundred eighty-four thousand United States dollars).
Unfortunately, President Boakai, who announced his figures as of December 31, 2023, said they inherited US$20.5 million—approximately over US$1 million less than the amount that was there at the time.
However, Weah’s pronouncement, according to his farewell address, was as of January 19, 2024, and not December 31, 2023 as mentioned by President Boakai. Regrettably, Boakai’s pronouncement as of December 31, 2023 was inaccurate per the Hot Pepper’s investigation.
The Hot Pepper findings also revealed that, between December 31, 2023 and January 19, 2024, the Consolidated Fund Account appreciated by US$12.131 million (twelve million one hundred thirty-one thousand United States dollars) and L$1.212 billion (one billion two hundred twelve million Liberian dollars).
This means as of the time ex-President Weah spoke, the consolidated account had US$28.270 million (twenty-eight million two hundred seventy thousand United States dollars) and L$2.237 billion (two billion two hundred thirty-seven million Liberian dollars).
When the Liberian dollar component, L$2.237 billion, is converted to United States dollars using the standard CBL rate, 188, it will sum up to US$11.898 million. Adding the Liberian dollar component and the United States dollars component will sum up to US$40.168 million.
Regrettably, because the country runs a dual currency regime and the consolidated accounts has both United States dollar and Liberia dollar components, ex-President Weah and his Minister of Finance and Development Planning, Samuel Tweah, should not have converted the Liberian dollar component to United States dollars and combine both figures, as they are kept separately as they are.
Howbeit, the Hot Pepper findings concluded that because President Boakai took over the country on Monday, January 22, 2024, he should have announced what was in the consolidated account at the time and not limit it to December 31, 2023, as Weah was still President until the day he was inaugurated; as such, announcing figures that were in the account about twenty-two (22) days before his takeover and leaving out the rest of the amounts is insincere, wrong and unpatriotic.