Monrovia- After it was reported in many news outlets in Monrovia including Frontpage Africa quoting former General Auditing Commission, who alleged that the IMF says its “Prior Actions” number one: Fire 400 people at CBL.

“Will the Weah’s govt agree to layoff that many Liberians plus more in the midst of massive poverty and unbearable high unemployment?” Mr. Morlu said.

The former GAC boss said, infact IMF is demanding more cuts in expenses as the salary cuts weren’t enough, meaning more suffering. “So Liberia is not yet in the program until IMF can see more cuts in expenses, beginning 400 layoffs at CBL,” he stated.

Mr. Morlu also alleged that IMF is unlikely to spend even $200 million in Liberia and it will not make a dent in the fundamental problems facing that nation.

But the Central Bank of Liberia (CBL) says its attention has been drawn to media reports that the CBL is planning massive redundancies, to the tone of 400 staff members – something that would amount to more than 50% of all its employees.

The CBL says the story was first reported in the Frontpage Africa Newspaper on Friday, 1 November 2019 and it has the potential of sowing discon tent at the Bank and within the wider society and, in so doing, undermine the recent hard work by a renewed and re-invigorated CBL Board of Governors to enhance the credibility of the Bank as the Monetary Authority of the Country, the CBL said.

“CBL, like other public sector organizations, is implementing an austerity program that will qualify the Government of Liberia for an IMF-Supported Program, which is critical to the country’s economic recovery in the medium term. However, nowhere is CBL planning to lay-off more than half of its entire human resources. Admittedly, the current level of CBL staffing is unsustainable, but the final figure, which is yet to be decided by the Board of Governors, is not likely to exceed 10% of its wage bill and that most of the expectedly redundant staff could be considered under a contractual arrangement.
While the ongoing negotiation is in an advanced stage, there are still issues to be concluded between the IMF staff and the Government, of which the CBL is an important player,” The CBL said in a press release.

Central Bank of Liberia says the austerity program that it is currently implementing was necessitated by several years of deficit financing, going as far back as several past administrations. More than this, CBL austerity program involves more than just laying off staff. It also includes other components of the budget.

The press release from the Central Bank states that It is important to also note that the proposed budget cut of the Bank is intended to strengthen the financial position of the Bank to enable it effectively perform its primary function of ensuring both monetary and financial stability.

“It is hoped that the above austerity measures will bring CBL operating expenditure under control by 2020, making it unnecessary for the institution to resort to the use its reserves for deficit financing.
CBL would like to work with a nationalistic and patriotic media that puts Liberia first, rather than media institutions whose publications cause panic and bring about social upheaval, undermining the national economy,” the Central Bank of Liberia press statement concluded.