IPNews-Monrovia: The debate into whether or not the government of Liberia should go ahead to print for the third time in less than 20 years new Liberian currency has widen.
It may be recalled, September 2019, President George Weah in a communication to both Houses of the National Legislature, called for their approval of that body to print new Liberian banknotes due to unaccounted currency infusion in the Liberian economy.
Now, the debate has attracted the Auditor General of Liberia, Mrs. Yusador S. Gaye, attention by warning the ‘NOT’ to go ahead with the printing of the new Bank notes citing unsettled issues in the audit giant-Kroll and the Financial Intelligence Unit-FIU reports.
The General Auditing Commission (GAC), one of Liberia’s integrity institutions charged with the responsibility to audit all government entities.
Madam Yusador Gaye sternly warning comes amidst reports that members of the Liberian Legislature are to return from its agriculture break to singularly passed on request made by President George Weah for the Printing of a new Liberian Bank notes, to replace current notes in circulation.
According to a separate communication obtained by the Independent Probe Newspaper, address to both House Speaker Bhofal Chambers and President Pro-Tempore Albert T. Chie, dated October 8, 2019, Auditor-General Gaye called on both Houses not to accept the request made by the Executive, “because it will accordingly have an adverse consequence on the economy and the people.”
“I am strongly of the opinion that giving your approval to print more currency is unfathomable, but will be very misplaced, granted we are yet to understand all what happened at the last currency printing, as evidently, the US$25 million mop-up exercise does not engender much confidence in the Central Bank of Liberia (CBL);”
“In fulfillment of part of my constitutional mandate aimed at providing support to your oversight of financial management role, I firmly suggest that you do not waver on your resolve not to print additional Liberian currency/money at this time.” Madam Yusador Gaye contends
But contrary to Madam Yusador Gaye’s viewpoint, to influential lawmakers of the governing Coalition for Democratic Change –CDC, are heavily leading public persuasion in accepting the printing of the new Liberian banknotes, as the best option for rescuing Liberia’s messy economic crisis.
Those leading the argument is House Judiciary Committee Chairman, Representative J. Fonati Koffa (Grand Kru #2), and the acting chairman on Executive, Representative Acarous M. Gray (Montserrado County #8).
Rep. Cllr. Koffa, a lawyer by profession, said: “Legislative work is never done whenever we are the self-described breaks. So whenever the national need arises, we have to respond. In this case, there are critical economic issues to address.”
For Rep. Gray, “Resumption of work on November 18, 2019, is our first priority.”
Montserrado County District #8 Representative Acarous Moses Gray, said ‘printing of the new banknotes will help the CDC government to put smiles on the faces of civil servants (many of them have not being paid for several months.)
In a sharp response to critics on social media, he posted: “Printing of money will also help pay our civil servants on time for the Christmas’ break, but you are kicking against it because you believe that if civil servants are not paid on time, they could join the so-called Weah must resign failed protest.”
Rep. Gray argued that the significance of the printing of new Liberian banknotes by the Weah administration cannot be overemphasized
The House’s Acting Chairman on Executive made the pronouncement first on OK FM before posting it on Facebook.
Both executive members of the Coalition for Democratic Change (CDC) confirmed the rumors after a three-hour Monday talk show with Finance Minister Samuel Tweah, who said that President George Weah’s government wants to print ‘new money’ with Crane Currency.
Min. Tweah said Crane Currency can only print money for the country between now to December.
Eventually following the reading of the President’s communication for the printing of the new Liberian banknotes, the Senate Committee on Banking and Currency, chaired by Grand Gedeh County Senator Marshall Dennis, quickly recommended Plenary’s affirmation. But the committee’s response to the President’s request drew vehement opposition from Senators Darius Dillon, Oscar Cooper and others, who are contending the full explanation into how the 16 billion Liberian dollars allegedly disappear and the 25 Million United States dollars mop-up funds were expended needed to be properly address before the introduction of a request to print new banknotes.
Margibi County Senator Oscar Cooper wonders why the CBL should request to print L$35 billion, when the money in circulation is L$21 billion that needs to be removed from the market. “What becomes of the difference of L$14 billion, which was not properly answered by the Governor?” he asked.
According to counts provided by the GAC, “most currencies are fiat in nature, which means they are not backed by any tangible commodity, and technically have no intrinsic value, but rather by the government’s authority and trust. Again, fiat money has value only because government maintains its value or because parties engaging in exchange agree on its worth.”
The AG continued: “A review of the daily exchange rate on the CBL website shows that the exchange rate has steadily risen on a daily basis during the period August 16, [to] October 2, 2019. Generally, a major problem of the fiat currency is inflation, and as government prints new money, the currency already in circulation devalues.”
The GAC states that most important rationale for the entity’s professional advice in addition to the above are that: a) “it has not been verified whether the CBL has implemented measures to address the lapses noted by the Kroll’s scoping report (3.2.8 non reconciliation of vault balances and 6.4.2.3 in constancy in finance department); b) the Presidential Investigative Team (PIT), report 2.2.25, which raises alarms of no security in place for the protection of reserves; and c) the GAC’s Agreed-Upon Procedure on the US$25 million mop-up exercise highlighted (1.1.3 unsigned, and not dated minutes, 2.4.2 lack of procedure for posting, and 2.4.3 disbursement not processed through the bank).”
The communication further raised several questions, including that, “the investigation into the whereabouts of the L$16 billion, which has not have been finalized; the matter of how the mop-up exercise was handled has not been addressed, whether the CBL has put in measure to ensure most currency flows through the banking system as 90 percent of the currency [exists] outside the banks.”
GAC continued: “What policies has the CBL put in place to curb possible counterfeit monies on the market; and what measure will be put into place to prevent the hoarding of cash?
“Additionally, from the printing and handling of the L$15 or L$16 billion, it is quite apparent for all to see that CBL does not have adequate internal controls, and is thus ill-equipped to function at its best, which the Kroll and GAC reports attest to,” the communication said.
Madam Gaye’s communication furthermore stated that the ‘Executive Breach, must find a ways to forestall the morass before thinking to print new banknotes.
.Article 32 of the Liberian Constitution states: “The Legislature shall assemble in regular session once a year on the second working Monday in January.”
However, the ‘B’ part says: The President shall, on his own initiative or upon receipt of a certificate signed by at least one-fourth of the total membership of each House, and by proclamation, extend a regular session of the Legislature beyond the date for adjournment or call a special extraordinary session of that body to discuss or act upon matters of national emergency and concern. When the extension or call is at the request of the Legislature, the proclamation shall be issued not later than forty-eight hours after receipt of the certificate by the President.
