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February 12, 2025

Liberia: Govt Faces Backlash Over Tarlue’s U.S.$374k Settlement Package

The Unity Party (UP)-led government is grappling with public outrage after its controversial decision to pay a US$374,239.24 settlement to J. Aloysius Tarlue, the suspended Executive Governor of the Central Bank of Liberia (CBL).

This move has not only drawn severe criticism from political opponents but has also raised questions about the administration’s commitment to its anti-corruption agenda.

Tarlue’s suspension earlier this year was prompted by a report from the General Auditing Commission (GAC), which flagged a series of financial mismanagements during his tenure at the CBL.

The GAC report, which covered the period from 2018 to 2023, revealed significant financial irregularities, including the exceeding of approved expenditure limits by US$19.31 million.

It also highlighted a pattern of deficits resulting from over-optimistic budget projections that consistently exceed actual revenues.

According to the GAC, Tarlue’s leadership failed to comply with crucial financial regulations such as the Public Financial Management (PFM) Law, the Public Procurement and Concessions Act, and the Liberian Constitution–findings that were serious enough to warrant his suspension. However, despite these severe allegations, the government has taken a very different route, opting for a financial settlement rather than pursuing legal action.

Rather than face prosecution or further investigation, Tarlue filed a lawsuit against the government, demanding his reinstatement and payment for the remainder of his five-year term.

In an unexpected development, the Boakai administration agreed to settle the matter, signing an alleged “Settlement and Release Agreement” that saw the government pay Tarlue US$374,239.24 in compensation for the unexpired portion of his term. The agreement stipulated that Tarlue would relinquish his position voluntarily and waive any future claims against the government.

This move has raised serious concerns among critics, particularly lawmakers and anti-corruption advocates, who argue that it sets a dangerous precedent. The settlement not only rewards an official under suspicion of financial mismanagement but also raises questions about the administration’s commitment to transparency and accountability.

Recently, Margibi County Representative Clarence Gahr, Chairperson of the Joint Legislative Public Accounts Committee, has been particularly vocal in condemning the deal. Gahr accused the government of engaging in backroom deals that allow corrupt officials to escape real accountability.

“By paying off Tarlue instead of allowing the legal process to take its course, the government is undermining its own anti-corruption efforts. This kind of settlement sends the wrong message–that corruption doesn’t have consequences. The public is watching, and they are not pleased,” Gahr stated.

The controversy surrounding the settlement is compounded by the leaked documents detailing the agreement, which were meant to remain confidential. The public’s anger has been fueled by the fact that Tarlue’s suspension stemmed from a General Auditing Commission (GAC) report that raised serious allegations against him, and yet, rather than face any repercussions, he walks away with a financial package that many see as a reward for mismanagement.

The settlement has significantly dented the credibility of President Boakai’s anti-corruption campaign, which was a cornerstone of his 2023 presidential campaign. Boakai pledged to wage a zero-tolerance war against corruption, citing GAC audits as the key tool to hold officials accountable. However, critics argue that the Tarlue settlement undermines these promises, suggesting that the administration is more interested in political expediency than tackling the root causes of Liberia’s ongoing financial crises.

“This is not about accountability; this is about protecting political allies at all costs. The president promised change, but this is just more of the same–a political maneuver to shield people from the consequences of their actions,” said Gahr.

Many see the settlement as evidence of a larger trend within the administration to protect high-ranking officials implicated in corruption, undermining the integrity of Liberia’s institutions and sending a dangerous message to the public.

“That money is too huge for the government to give to one man when many Liberians are going to bed hungry,” a caller said on a phone-in talk show on Friday. “Our leaders see this country as a cash cow and would do anything to please themselves. This is so unfair to the citizenry.

President Boakai’s campaign against corruption included harsh criticism of former President George Weah’s administration, which was frequently accused of turning a blind eye to corruption within government institutions. But now, Boakai faces accusations of failing to act on similar issues within his own administration.

Calls for Transparency and Accountability

While the settlement has sparked outrage, it has also intensified the call for greater transparency and accountability in Liberia’s financial sector. Political commentators and watchdog groups are demanding that the Boakai administration stop making financial settlements with officials accused of mismanagement and instead pursue legal remedies that ensure real accountability.

Acting CBL Governor Henry Saamoi, nominated to succeed Tarlue, has attempted to distance himself from the controversy, pledging to maintain the CBL’s independence and restore its operations. Saamoi, who confirmed the settlement during his confirmation hearing, has emphasized his commitment to reforming the CBL. However, the settlement continues to overshadow these efforts.

“We must rebuild trust in the CBL and in Liberia’s financial institutions. This government must be transparent and consistent in its fight against corruption,” said Saamoi during his confirmation.

The settlement with Tarlue may prove to be a pivotal moment for the Boakai administration. The president’s ability to follow through on his anti-corruption promises is now under intense scrutiny. With public trust eroding and lawmakers questioning the integrity of the process, the government will face mounting pressure to address these concerns head-on.

For many Liberians, the settlement represents another missed opportunity for true reform, and the controversy is likely to follow Boakai as he attempts to steer the country forward. The question now is whether the Boakai administration will choose to prioritize political loyalty or whether it will heed the public’s demand for genuine accountability and transparent governance.

By Liberian Observer.

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