IPNEWS: The Central Bank of Liberia says it would lay-off at least 203 contractors brought into its system during the regime of former Liberian President George Manneh Weah.
The CBL stated that the termination of contracts for two hundred three (203) contractors and six consultants who have been working for the bank for different periods of time from 2019 to 2024, is in keeping with recent agreement with the International Monetary Fund which pave way for Liberia’s new credit facility.
The CBL statement was contained in a communication sent to House Speaker Cllr. J. Fonati Koffa on August 26, 2024, in which the CBL states that its decision is predicted on the high personal costs which the bank cannot sustain based on its current financial position.
The communication under the signatures of CBL Acting governor disclosed that as one of prior actions of the new “Extended Credit Facility (ECF) program for Liberia, the CBL is required to significantly reduce it personnel cost by ending the contracts of its existing contractors under a definite contract agreement with the bank.
It further said there are plans to implement the decision by the end of August ahead of the meeting of the international monetary fund (IMF) Executive Board on 25th September 2024 to consider and approve the ECF program for Liberia.
However, CBL August 26 communication to House speaker Kofa indicated that the current management is constrained to take the decision for the greater good and benefit of the country.
In furtherance, it pointed out that based on the decision, the bank has prepared a compensation package for the affected contractors and consultants which include payment for the unexpired portion for the affected contractors and consultants existing contracts which end by September 2024.
The communication also informs Speaker Kofa that the bank has officially informed the Ministry of Labour about the decision consistent with the labour laws of Liberia adding that it counts on the support of the House of Representatives to ensure the process is done.
The bank at the same time disclosed that as part of its institutional reform to enhance efficiency and productivity the bank will undertake a comprehensive, competitive and transparent recruitment exercise based on the required skills and needs of the bank with technical assistance from the IMF.
Additionally, the CBL in a release stated that the Central Bank of Liberia (CBL) reiterated that the 203 whose definite employment contracts are set to end following the near successful completion of the Currency Reform project mandated by the 54th National Legislature in a Joint Resolution of May 2021. The statement notes that this comprehensive engagement is to ensure an amicable end-of- contract separation that guarantees the full respect of their contractual rights, consistent with the labor practices law of Liberia as well as providing support and guidance.
The currency reform exercise, which was initiated in 2021, has largely ended with the project goals achieved and its objectives relatively met. Hence, the contracts with the staff, as per the definite term employment agreements, end on their stipulated dates.
In line with the labor law of Liberia and in acknowledgement and appreciation for the dedicated contributions of the staff, the CBL Management is committed to the payment of the unexpired contractual period of those whose contracts have terminated ahead of the contract agreement. The CBL management will also provide a token to all the contractors and hold an appreciation ceremony to certificate staff for their invaluable contributions during their contractual period at the Bank.
During a meeting with the end-of-contract separated contractors and consultants, Tuesday, August 27, 2024, Acting Executive Governor, Henry F. Saamoi said, “we value your services, and have prepared a package and an honoring ceremony for you, but that the situation was brought on us by the circumstances.”
While announcing a scholarship for those of the contractors who are high school graduates to back to school, Mr. Saamoi said “it`s a difficult task, but whenever faced with difficult decision, consider the country first.”
Furthermore, the statement states that while the Currency Reform has come to an end, the CBL Management remains committed to exploring future opportunities for the end-of-contract separated contractors and consultants, to participate in a competitive recruitment exercise at the Bank where their skills and expertise may be applied.
The CBL remains dedicated to ensuring transparency in this exercise with the aim of treating all contract staff with respect and dignity during these periods. The bank will continue to uphold its values of integrity and fairness as it navigates this process.
By implementing this transparent and objective separation process, the CBL streamlines its workforce, optimizes resources, and maintains the integrity of its operations, and that the success of this process secures the future financial viability and operational effectiveness of the Bank.
The current operational cost of the CBL has been unsustainable over the recent years, especially given the limited income sources of the Bank and the impact of its huge operational cost.
As the layoff process evolves, it brings to minds the occurrence of the same in November 2019, when former Auditor General John Morlu struck nerves after revealing how the IMF had made the dismissal of some 400 employees from the Central Bank of Liberia under the Goerge Weah government as one of the prerequisites for Liberia entering its Extended Credit Facility. Even though the government then swiftly reacted to former Auditor General Morlu’s revelation as a potential of sowing discontent at the Bank and within the wider society, especially to undermine the hard work by a renewed and re-invigorated CBL Board of Governors to enhance the credibility of the Bank as the Monetary Authority of the Country, however, indicated that the CBL, like other public sector organizations, was implementing an austerity program that will qualify the Government of Liberia for an IMF-Supported Program, which were critical to the country’s economic recovery in the medium term.
“Admittedly, the current level of CBL staffing is unsustainable, but the final figure, which is yet to be decided by the Board of Governors, is not likely to exceed 10% of its wage bill and that most of the expectedly redundant staff could be considered under a contractual arrangement. While the ongoing negotiation is in an advanced stage, there are still issues to be concluded between the IMF staff and the Government, of which the CBL is an important player.”
“The austerity program that CBL is currently implementing was necessitated by several years of deficit financing, going as far back as several past administrations. More than this, CBL austerity program involves more than just laying off staff. It also includes other components of the budget. It is important to also note that the proposed budget cut of the Bank is intended to strengthen the financial position of the Bank to enable it effectively perform its primary function of ensuring both monetary and financial stability.” A statement of the CBL read.
