Is the Central Bank of Liberia Broke?

first_img35 employees of the Central Bank of Liberia have been brought under the jurisdiction of the court and prohibited from leaving the country until the investigation into the alleged missing L$16 billion is concluded.Is the Central Bank of Liberia broke? And is it so broke to the extent that public financial instruments held by individuals and institutions are purportedly being reportedly downgraded, is the million dollar question lingering on the kinds of the public.The answer is yes, according to a Liberian financial expert Yanqui Zaza who made the disclosure at a Governance Commission one-day policy forum on the state of the Liberian economy held over the weekend at the Lutheran compound in Sinkor.Mr. Zaza disclosed that the Government of Liberia (GOL) in 2016 owed commercial banks a total of US$ 42,435,165. He explained that an analysis of commercial banks’ loan portfolios shows that three sectors of the economy accounts for the stated amount remained outstanding at the close of the fiscal period. Those sectors, according to him are a) Trade; b) Construction and c) Services, while Manufacturing accounted for a mere 5 percent of the total.He furthered that GOL’s over-reliance on what he calls User taxes which include Excise, Value added, Payroll, Income, Real Estate, Property, Sales and other related taxes to finance its budget is unsustainable because such a practice usually leads to the accumulation of huge debts borrowed from international financial institutions such as the World Bank and IMF.Earlier, the President of the Liberian Bank for Development and Investment (LBDI) John Davies, from whom Mr. Zaza apparently took his cue, had disclosed during his presentation that the severity of this problem has created a situation wherein commercial banks have developed a tendency to display a rather knee-jerk reaction-NEXT- to those presenting GOL contracts and obligations as collateral for lending assistance.Given the growing public outcry against rising economic difficulties induced by the current liquidity crisis and given the importance that the Daily Observer attaches to this matter, several attempts made over the past few weeks to contact the Central Bank Governor or any of his functionaries for comment proved futile until late Sunday evening when this newspaper finally succeed in establishing contact with Mr. Cyrus Badio, Public Relations Manager at the Central Bank.When asked for comment on Mr. Zaza’s averments that the Central Bank of Liberia at the close of fiscal year 2016 owed commercial banks to the tone of US$42,435,165, Mr. Badio replied that he could not comment since such information was not availed to him, however promised to contact the relevant individuals clothed with the authority to speak on such matters. He did not say when, although requested the Daily Observer to hold on to its story until he had done so.Meanwhile the Daily Observer has confirmed its readiness to publish the Central Bank’s comments in reaction to Mr. Zaza’s comments.Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)last_img read more


first_imgUPDATED 5pm: The standoff between the staff of a Letterkenny bakery and the Revenue Commissioners has ended – for now.Workers acting on behalf of the tax sheriff have left the scene and the workers who had baracaded themselves into the Highland Bakery premises have left the building.Another shift of workers have now moved in to work in the premises. Earlier today businessman Kevin Bradley told that he is trying his best to keep the company afloat and the 28 full-time jobs at the Letterkenny bakery.Mr Bradley was speaking after officials acting on behalf of the Revenue Commissioners tried to enter the Killyclug premises earlier today.However more than 20 staff inside have barricaded themselves inside and are refusing to come out.“Mr Bradley told us “I know I owe them money – that is no secret but I am trying my best. “I am trying to keep these people in jobs. I do not want to walk away form this. Some of these people have been with me for 12 years.“I would appeal to the Revenue to allow me more grace and to try and get things sorted,” he said.It is believed a number of men acting on behalf of the tax sheriff have tried to gain entry to the building to remove machinery.Gardai also arrived at the scene of the stand-off in the Glencar area of the town, but have since left.Mr Bradley, who is currently in hospital, says he had 48 employees up until last year but had to let staff go. “You show me business people who aren’t finding things tight. The funny thing is that we are trading well at the moment but we need time to get out of this,” he said.Donegal Daily visited the scene of the stand-off but found all doors locked.Two staff from the Revenue Commissioner’s office sat inside a car outside but declined to make any comment.A recovery truck parked nearby had also been brought onto the site by staff acting on behalf of the Revenue. Later Padraig MacLochlainn tried to raise the stand-off in the Dail, but he was prevented from doing so because it was a breach of procedures.BAKERY STAND-OFF COMES TO AN END AS TAX OFFICIALS LEAVE THE SCENE was last modified: May 22nd, 2012 by StephenShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window)Tags:GardaiHighland BakeryKevin Bradleytax sherifflast_img read more