Bank Guarantees or Protecting Defaulters?

Good morning, everyone.

As we close out another week, I want to address some critical issues facing our nation. While I understand that many in Liberia feel economically trapped and unable to speak out publicly, and that some may distance themselves from us to protect their jobs or gain favor, I want to make it clear that we engage with people from all sectors, both within and outside of government. We recognize that some may criticize us as a strategy to align with those in power. Since we are not seeking anything from President Boakai, we will allow these pretenses to continue unabated.

Now, on to the pressing matters at hand.

First, I want to express our deep gratitude to the IMF for hearing our concerns and taking decisive action. We are thankful that the IMF responded to our call to condition the release of the $209 million to the Boakai administration on the implementation of robust safeguards to protect Liberia’s economic future. We insisted on a thorough review of all loan guarantees made by the Central Bank of Liberia (CBL), and both President Boakai and the IMF have complied.

The CBL’s pattern of bailing out commercial banks due to loan defaults sets a dangerous precedent. Under the Weah administration, we witnessed the Central Bank bail out LBDI twice, each time with $40 million. When the young president of LBDI exposed the defaulters—many of whom were political figures from the Sirleaf and Weah administrations—he was ousted by Finance Minister Samuel Tweah under the pretext of credentials fraud. Yes, he engaged in credential fraud, but his true ouster was for exposing these political loans to the IMF and the U.S. government. This is a clear example of how government officials and their business allies exploit the Central Bank to guarantee their bad loans, leaving ordinary Liberians to foot the bill.

These corrupt practices have suffocated the average Liberian for far too long. And with President Boakai’s “rescue team,” it seems nothing has changed.

The recent $3.5 million CBL guarantee to Bloom Bank and a private business, Kailando, along with the $8 million bailout to SIB Liberia Limited and an additional $4 million in another guaranteed default, are just more examples of the same old corruption in a new guise. This is highway robbery—some within Boakai’s economic team are following in the corrupt footsteps of Weah and Sirleaf, shamelessly looting Liberia’s resources. This is unacceptable, and it must be condemned.

Senior Economic Advisor Morley Kamara, a key figure in President Boakai’s administration, must come clean about whether he took $895,000 from SIB Liberia Limited. His silence speaks volumes, and it’s time he tells the truth. It’s worth noting that Morley Kamara, who owns significant amounts of land and property in Liberia, initially opposed the $8 million bailout but then quickly reversed his stance, raising serious questions about a potential conflict of interest. Is he bailing out himself? Some at the IMF are wondering.

We know we’ll face criticism for speaking out, but let me remind everyone that we have powerful allies in Washington, D.C., and Brussels, where the World Bank and IMF are heavily influenced. If we’re ignored in Liberia, we’ll take the fight abroad, just as we did with Weah.

As a condition for the $209 million IMF program, the Boakai administration has agreed to allow the IMF to bring in top financial lawyers from Washington, D.C., to review these CBL guarantees and untangle this mess. We aren’t just talking—we’re actively fighting on all fronts to save Liberia from the corrupt practices of both the old and new administrations.

Congratulations are in order for Ngafuan, Saamoi, and Wilfred as they take over the Ministry of Finance and the Central Bank of Liberia.

Incoming Finance Minister Ngafuan must ensure that all outstanding government business loans are repaid—loans don’t expire. This isn’t his first time at the Ministry of Finance, and he must act decisively. He should begin by addressing the Ministry’s $25 million in business loans.

Likewise, Governor Saamoi and Deputy Governor Wilfred must clean up the banking sector, starting by confiscating assets and ending the practice of guaranteeing loans for defaulters. The $10 million loan to Kamaya’s Liberian Business Association should be addressed first, as it, too, is a CBL-guaranteed loan.

If these actions are taken, then we, as Liberians, will have reason to rejoice. We will know that a new day has dawned, and we can finally celebrate true progress.

We must continue the fight—both here and abroad—for Liberia’s future. We will win the war on corruption and bad governance, and we will finally achieve the accountability, transparency, and rule of law that our country so desperately needs.

Let us pray that President Boakai succeeds in building a legacy of good governance. I supported his campaign because I believed in his potential, and I still do. But he must wake up and act with integrity and the utmost swiftness.

The future of Liberia is at stake, and we cannot afford to lose this battle. Though it may be a long and drawn-out fight, we will win. Tomorrow, Boakai may even thank us for it.

Sincerely,

John S. Morlu II