By Bill W. Cooper
It appears that the Central Bank of Liberia (CBL) will in the coming days be faced with serious legal battle that might stall the Bank’s operations.
Governor Aloysius Tarlue has begun to protest his suspension at the Supreme Court of Liberia while the CBL went ahead to induct the newly appointed acting governor and others to its board.
On July 30, 2024, President Joseph Boakai suspended Mr. Tarlue on grounds that, that would afford him time to pay attention to the damning audit report by General Auditing Commission (GAC) about the Bank’s financial status.
Two days after, the Board of Governors headed by the acting Governor Henry Saamoi was inducted therefore, the suspended Executive Governor over the weekend prayed the high court for a Writ of Prohibition over what he described as “illegal” his suspension by President Joseph Boakai.
According to the President, Tarlue’s suspension was a result of serious allegations of non-compliance and gross failure to adequately perform his responsibilities as contained in the report of the GAC.
Tarlue is now tagged based on a report provided by the GAC regarding the compliance audit of the Central Bank of Liberia (CBL) for the years 2018-2023 that was under his leadership.
President Boakai then appointed the former CEO of the International Bank (IB) Liberia Limited Chief Executive Officer (CEO), Henry Saamoi to act while naming the governor to the reactivated Economic Management Team to tackle economic uncertainties, coordinate fiscal and monetary policy, accelerate economic reforms, strengthen regulations and build resilient economy.
But Tarlue’s legal team, in its petition to the Justice in Chambers of the Supreme Court, Yussif D. Kaba cites Section 13.1 of the Amended and Restated Act establishing the Central Bank of Liberia in 1999 as its reliance.
The lawyers, in their petition filed August 2, 2024, argued that their client had a definite five-year term to serve and could not be dismissed or removed from performing his function by the President except through impeachment by the Legislature.
Section 13.1 states: “A member of the Board of Governors can be removed from office by a bill of impeachment from the House of Representatives upon findings by majority of the Board of Governors as well as a recommendation of the President for Gross breach of duty, Misconduct in office, Conviction of a felony and being declared bankrupt.”
According to the writ which is in the possession of the Inquirer Newspaper, Tarlue’s lawyers also prayed the court that the petitioner show cause why the peremptory writ should not be issue for the legal and factual reasons.
The lawyers argued in their writ that the Executive Governor of the CBL was duly appointed in accordance with controlling law of the CBL Act of the country on July 15, 2021.
The team also pointed out that the content of suspended Governor Tarlue’s letter of appointment states that by virtue of his appointment as the Executive Governor, he had a definite term to serve and could not be dismissed by the President or removed from performing his function, except by impeachment.
Tarlue’s legal team further narrated that, “Section 13.1 of the Amended and Restated Act establishing the CBL (1999), which was published into handbill on September 21, 2020, clearly states that the appointment of the non-Executive Governors, Executive Governor, and Deputy Governor shall be from among persons who are in good standing.”
“Also, person of unimpeachable character, from the business and academic community, with experience and expertise in the business of banking, finance, economics, law, or management, by the president of the Republic of Liberia, subject to confirmation by the Liberia Senate, of the term of five years,” the section continued.
In count three, the petitioner provided that the appointment procedure must be finalized within 60 days preceding the expiration of the term of the relevant no-Executive Governor with the condition that a Non-Executive Governor by effluxion of time shall be eligible for reappointment provided that the he or she shall not serve for more than two consecutive five-year terms.
Tarlue legal team’s petition further argued that the President’s decision to suspend their client was arbitrary and without legal basis, and that it threatens to disrupt the operations of the CBL at a critical time for the country’s economy.
Meanwhile, amidst the writ of prohibition being prayed for, the Board of Governors inducted were Acting Executive Governor, Henry F. Saamoi, Chairman; Messrs. George H. Gooding, member; Joseph F. Robertson, member; and Cllr. Ebenezer Z. Gibson, member.
Also, the induction marks the official commencement of duties of the Board of Governors as the policy driver of the Bank’s strategic goals, operational frameworks, and regulatory environment.
The new Board members, during their induction ceremony at the CBL headquarters over the weekend expressed their commitment to fostering economic growth and financial inclusion, pledging to focus on reinforcing financial stability and enhancing monetary policy effectiveness in Liberia.
However, Saamoi appointment to act as the CBL’s governor has drawn the attention of many Liberians, especially those in politics and the banking sector, describing the appointment as not only illegal or unconstitutional but as ‘business as usual.’
The legal battle between Tarlue and the government is nothing to drift-pass therefore, in the coming days, the future of the CBL and the country’s monetary policy hangs in the balance.
The CBL plays a crucial role in maintaining the stability of the country’s currency and financial markets, and any disruption to its operations could have serious consequences for the Liberian already struggling economy.
