IPNEWS: Last week several news articles suggested in a purported GAC leaked audit report of the Central Bank of Liberia accounts, that acting Deputy CBL Governor was a wrong picked by President Joseph Boakai given his default in the repayment of a US 90,000 loan.

The reported leaked when wide with many suggesting displeasures over the appointment of Mr. James Wilfred as contrary to the zero tolerance of corruption and the lack of upholding transparency, especially in the case of a conflict of interest.

“The GAC’s report unveiled that Wilfred is currently in default on a loan of US$90,000, a sum borrowed from the very institution he is now tasked with overseeing. This situation raises critical questions about accountability, integrity, and the implications of placing individuals with questionable financial histories in high-ranking public positions. As political analysts scrutinize President Boakai’s decision to appoint Wilfred, it becomes essential to explore the broader ramifications of such choices on governance and public trust.”

“The GAC’s findings are particularly alarming, as they reveal not only Wilfred’s financial irresponsibility but also the potential conflicts of interest that may arise from his appointment. Having previously served as an Assistant in the Deputy Governor’s office for Operations, Wilfred’s history with the CBL is intertwined with the institution’s operations. His default on a significant loan cast doubt on his ability to manage public funds and uphold the ethical standards expected of someone in his position. Critics argue that appointing a person with such a financial burden undermines the credibility of the CBL and poses a risk to the institution’s integrity.”

“The political implications of this appointment are profound. President Boakai’s decision to place Wilfred in a position of authority has led to widespread criticism. Political analysts contend that the president’s choice reflects a lack of due diligence in vetting candidates for crucial roles within government. By promoting someone with unresolved financial obligations, the administration appears to disregard the importance of accountability and transparency, values that are particularly vital in a nation striving to restore confidence in its institutions. The juxtaposition of Wilfred’s financial troubles and his new, presumably lucrative salary raises further concerns about the potential for corruption and the misuse of power.”

“Moreover, the situation prompts a broader discussion about the standards of leadership and the moral responsibilities of those in public office. The ability to manage one’s financial affairs is often seen as a reflection of one’s character and competence. By appointing Wilfred, the administration risks sending a message that financial irresponsibility can be overlooked in the pursuit of political agendas. This perception could erode public trust in government institutions, leading to cynicism and disengagement among citizens who expect their leaders to exemplify integrity and accountability.” A longtime former Executive Governor to the authoritative Independent Probe.

However, in an investigation conducted by IPNEWS, revealed that contrary to this perception there is no wrong doing of financial default committed by acting Deputy CBL Governor for Operations, Mr. James Wilfred as previously suggested.

The IPNEWS investigation reveals that Mr. James Wilfred prior to his appointment by President Boakai was still seconded to the West Africa Monetary Institute in Accra, Ghana since 2020 for which deduction on a loan for a scholarship would have been made by CBL Human Resources Department for remittance to the CBL account to service his loan.

Experts during the investigation points to six-dimensional reasons which may have undercut the repayment of Mr. Wilfred loan contrary to public perception of a willful refusal to make repayment on the US 99,000 loan.

The Economic Impact of Secondments: A Cross-Border Analysis”

When bank staff are seconded to another jurisdiction to perform similar job functions, it often raises questions about the management of their financial obligations, particularly loans that were acquired at their original place of work. Here are some details and reasons why these loans might remain unpaid during the secondment:

1. Jurisdictional Issues:

• Cross-border regulations: Different jurisdictions may have varying laws and regulations governing financial obligations, including loans. This could lead to complications in enforcing loan repayments.
• Currency exchange and transfer restrictions: If the secondment is international, issues related to currency exchange rates, transfer fees, or restrictions on moving money across borders can impact the ability to service loans. 

2. Employment Status:

• Change in employment terms: During a secondment, an employee may technically remain on the payroll of the original employer but may be subject to different employment terms in the host jurisdiction, potentially affecting their salary or benefits.
• Temporary employment arrangements: The secondment might be treated as a temporary employment change, where the employee’s income and other financial commitments are considered differently, leading to delays or pauses in loan repayments.

3. Financial Planning and Cash Flow Issues:

• Cash flow challenges: An employee on secondment may face increased living expenses or other financial commitments in the host country, which could strain their ability to make loan payments back home.
• Delay in salary adjustments: Sometimes, salary adjustments for the seconded employee might not immediately reflect the cost-of-living differences or other financial considerations, leading to cash flow issues. 

4. Administrative Delays:

• Banking system integration: The process of integrating or transferring financial obligations from one jurisdiction to another can be complex, leading to administrative delays.
• Communication gaps: There may be communication gaps between the original bank and the seconded jurisdiction, leading to misunderstandings or delays in processing loan payments.

 5. Policy and Agreement Terms:

• Loan agreements: The terms of the loan agreement may not account for the possibility of secondment, leading to ambiguity regarding repayment expectations during the secondment period.
• Employer policies: Some employers might have specific policies in place that either pause or alter the repayment terms of loans during secondments, depending on the circumstances.

6. Personal and Professional Priorities:

• Prioritization of new financial commitments: The employee might prioritize settling into the new jurisdiction, including securing housing, transportation, and other necessities, over servicing existing loans.
• Focus on professional duties: The responsibilities of adapting to a new work environment and fulfilling the requirements of the secondment might overshadow the employee’s attention to financial obligations.

In many cases, these unpaid loans might be addressed once the employee returns to their original place of work or through renegotiation of terms with the lending institution.

In the case of James Wilfred, there was gross administrative lipases and faulty communication gaps by the CBL through its Banking system integration for the timely processing integration or transferring financial obligations from his jurisdictional account to the CBL leading to administrative delays.

IPNEWS investigation further established that there were complete Communication gaps between the CBL and Mr. Wilfred’s seconded jurisdiction Bank leading to misunderstandings or delays in processing loan payments which was xaptured by the GAC audit without proper explanation.

Last week CBL provided some explanation into the controversial loan stating that based on the finding of the General Auditing Commission (GAC) audit of the CBL, concluding that CBL former and seconded staff, including Mr. James Wilfred, seconded with WAMI in Accra, Ghana and recently appointed by President Joseph Nyuma Boakai as Acting Deputy Governor for Operations, defaulted on their loan obligations with the Bank.

The CBL Management informs the public that the Bank is fully aware of Mr. James Wilfred, whose loan repayment to the CBL  has not been current due to his secondment with WAMI, and notes that he has adequate provident fund, severance benefits, and property collateral in possession of the CBL.

CBL records show that after netting off Mr. Wilfred’s US$90,000 (Ninety thousand United States dollars) loan obligation to the CBL against his provident fund and severance benefits, CBL instead owes Mr. Wilfred.

The Bank further reaffirms that other seconded and former staff reflected as defaulters in the GAC Report have provident funds and severance payments held by the Bank, which are adequate for recovery of the loans.

In the resolution of these issues, the new CBL Management has, therefore, commissioned a review to determine the loan status of former employees on net, intending to inform the CBL Management’s decision about a strategy to recover the loans.

Meanwhile, the Bank emphasizes that loans paid out to seconded staff are fully collateralized by provident fund, severance, and collateral, which are sufficient for the security of the facility.

The CBL Management assures the public that the Bank is committed to prudent financial practices with the aim of protecting the interests of all stakeholders.