CBL Tarlue’s $374K Payoff: Was Govt Wrong, or Right? -Citizens Vex Over Govt’s Decision

MONROVIA – When President Joseph Nyuma Boakai on July 30, 2024, suspended Central Bank of Liberia (CBL) Executive Governor J. Aloysius Tarlue following the release of a damning General Auditing Commission (GAC) report covering January 1, 2018, to December 31, 2023, the decision was met nationwide with mixed public relations. While some questioned the authority of the president to suspend an official of government who holds a tenured position, many Liberians praised President Boakai for advancing the crusade against corruption. Surprisingly, however, as The Analyst has discovered, instead of investigating and prosecuting the suspended CBL Executive Governor for the significant level of financial malpractices that occurred under this watch, the Government of Liberia has decided to pay him off in the tune of US$374,239,24 so he can relinquish the Petition for a Writ of Prohibition case that he recently filed before the Supreme Court of Liberia, challenging the legality of his suspension. In a strange twist of fate, the decision for the Boakai administration to pay off Governor Taylor instead of investigating and prosecuting him has left pundits to conjecture that the government never really had a case against Tarlue, rather, his suspension was a witch-hunt to replace him with President Boakai’s choice for the CBL Executive Governor position, in violation of the constitution.

What did the GAC Report say?

The GAC findings that spurred Governor Tarlue’s suspension clearly indicted Governor Tarlue under whose watch financial irregularities occurred including excessive expenditures, deficit financing, improper transactions, unauthorized payroll financing, potential money laundering concerns, and lack of competitive bidding in procurement.

According to the CBL 2024 Audit Report on the CBL, operations of the nation’s chief financial clearinghouse ran contrary to constitutional and regulatory requirements. The GAC observed that the CBL management exceeded approved expenditure limits from Fiscal Year 2018 to 2022 by approximately $19.31 million. The audit also found that the approved budget expenditure projections consistently surpassed revenue projections, indicating a pattern of deficit financing.

The audit report further uncovered that CBL management cashed several checks over the counter, violating standard banking regulations. Examples include payments of $8,500 to Vision Pro and $8,000 to the West Point Youth Association. According to regulations, institutional checks should be deposited, not cashed directly.

Making matters worse, the GAC identified unauthorized financing activities, including a $50.2 million disbursement to the Government of Liberia’s payroll account on November 30, 2023, and an additional $32.85 million on December 23, 2023. These transactions lacked legislative ratification, contrary to Article 34 d (iii) of the 1986 Constitution of Liberia and Section 46.2 of the CBL Act of 1999. Additionally, there was no evidence of approval from the CBL Board of Governors.

The GAC report also raised concerns about potential money laundering, noting that CBL facilitated payments totaling L$1.946 billion and US$178.33 million above approved thresholds. These payments, made to institutions via individual names, included large sums such as US$121 million for the National Security Agency and US$23 million for the Executive Protection Service.

Significant legal expenses amounting to US$742,120 were disbursed to staff for subsequent payment to consultants, despite the CBL having an internal legal department and contracted legal firms. Additionally, unsolicited payments exceeding approved amounts were made, including US$1,084,027 for Corporate Social Responsibility initiatives.

The report showed that contracts totaling US$11.08 million were awarded without competitive bidding, lacking appropriate procurement documentation such as bid evaluation reports and contract award notices; and concluded that the Bank’s operations breached the 1986 Constitution of Liberia, the Public Procurement and Concessions Act of 2005, and other relevant regulations.

The GAC would then pray that the National Legislature hasten to implement the recommendations captured in the Report to curtail future financial losses and instill transparency in the nation’s financial management system.

Tarlue’s settlement and public perception about government largesse on corruption

Against the strong indictment from the GAC, the Government of Liberia and suspended Governor Tarlue recently into a Settlement and Release Agreement in which the Government of Liberia through the Central Bank of Liberia agreed to pay Governor Tarlue agrees US$374,239.24 representing compensation for the unexpired term of his tenure, net of all statutory deductions. Governor Tarlue on the other hand agreed that the payment of the net amount of US$374,239.24 by the CBL constitutes complete and total satisfaction of all claims he may have against the CBL or the Government, arising out of his employment, suspension, and tenure as Executive Governor of the CBL, according to the leaked Agreement that is in the possession of this paper.

In consummating the Agreement, the Government of Liberia and Mr. Tarlue filed before the Honorable Supreme Court on 13 January 2025 a Notice of Voluntary Discontinuance Joint Stipulation.

The letter to Cllr. Samuel Mamulu, Esq., Clerk of the Supreme Court read: “Kindly take note of, and spread on the records of the Honorable Supreme Court that pursuant to an agreement between the above named Petitioner and Respondent, the Petitioner and Respondent by joint stipulation hereby voluntarily discontinue without reservation the Appeal proceeding in the above mentioned cause of action currently pending before the Honorable Supreme Court.

“As agreed by the parties, this Voluntary Discontinuance is with prejudice and terminates the adjudication of this matter with satisfaction to the Appellee. The Cost of Court is waived, and the Petitioner shall pay the Clerk of Court whatever fee may be due her and the ministerial officers. Hence, this Notice of Voluntary Discontinuance: Joint Stipulation”.

Amid the cacophony of reactions, veteran journalist Jonathan Paye-Layleh prayed for the public to understand the context within which the compensation to suspended Governor Tarlue was made.

“If I’m getting it wrong, someone please help me out.  But I believe settling things with the ex-Central Bank Executive Governor is only about payment for his unexpired term. He could be called in for a corruption investigation arising from the GAC audit if he must be called in. The government is not exonerating him from a possible corruption investigation. Those are two separate cases, in my opinion. He should have remained as Executive Governor up to 2026. He was removed in 2024. And so he’s apparently being compensated for the unexpired time. This is different from investigation into a possible investigation into the GAC audit report. And, yes, I agree he’s being paid too much money. But let’s first get a clear understanding of what’s unfolding,” Mr. Paye-Layleh petitioned.

But disagreeing, activist Martin K.N. Kollie questioned the payment to Tarlue amid the stringent economic conditions of the populace.

“Why was he suspended? He was suspended based on an audit report that indicted him for misappropriation, mismanagement, and abuse of public funds (corruption). Why are you giving him almost 400K when hospitals and schools across Liberia don’t even have access to needed supplies and when tens of thousands of civil servants are receiving a non-living wage of 150? The law provides that people with tenured positions can be suspended/removed for a cause. He was suspended for cause. Without prosecuting him, you are paying him about 400K? Hmmm! What message are you sending? “You” in this context means Pres. Boakai,” Kollie said.

“This is depressing. The moment the President allowed Grisby to remain in his position after the Social Security scandal, I knew the whole fight against corruption was defeated. The National Legislature shares the blame as well. Liberia will never progress until we have leaders who are serious about fighting corruption. This is not what Liberians braced the rain for in 2023,” Benjamin D. Yeagar for his part said.

As for Diamond Doeyou Johnson, “this is a serious allegation that raises questions about the Boakai administration’s commitment to fighting corruption. If the government indeed paid Aloysius Tarlue $374K after suspending him for corruption and mismanagement, it contradicts the promise of accountability and justice that many voters expected.

“At a time when Liberia is facing economic hardship, such a payout—especially to someone accused of financial mismanagement—sends the wrong message. It suggests that corrupt officials can still walk away with hefty sums instead of facing legal consequences. If true, this is not a “rescue” but a reinforcement of the same corrupt system Liberians have long struggled against.

“The Boakai government must address these allegations transparently. If there is justification for this payment, they should provide clear explanations to the public. Otherwise, the perception that corruption is being rewarded will only grow, further eroding public trust”.

Abdulkadi Titita Alieu Sesay, a supporter of the Rescue Government, questioned his government’s decision to pay off Tarlue.

“Why conduct an audit when they weren’t going to punish anyone for corruption and why did he remove Aloysius Tarlue for corruption but wants to settle him now? I am surprised and still don’t want to believe that JNB has settled down for this. I still believe that there’s a law that no one is explaining to the public. I still believe that Tarlue and others will be prosecuted.”