President Facing Tricky Dilemma in Filling Void at Finance Ministry

Monrovia – When Boimah Kamara submitted his resignation, citing health reasons, to President Joseph Boakai last week, the decision not only threw a monkey wrench into the ruling Unity Party’s economic agenda, but also pivoted the government toward a crisis point, in the wake of ethical questions surrounding the Yellow Machines controversy, which the President now argues, in a letter to the national

In the buildup to his presidency, on the campaign trail and on the day of his inauguration, the newly-minted President had trumpeted his desire to revive the economy which his party contended had fallen in the doldrums of the dogged presidency of his predecessor, George Weah.

In his speech in January, the President also pledged to reduce hardships and alleviate the suffering of the masses under the mantra of his party’s “Rescue Mission,” a phrase that resonated with voters on the campaign trail, drawing a glaring contrast between the former ruling Coalition for Democratic Change and what the UP promised would be a much better government with the hallmark of transparency, accountability and good governance, often lacking in the Weah administration.

With Kamara gone, whoever the President settles on will be taking on a huge responsibility, overseeing an economy both the World Bank and the International Monetary Fund (IMF) project could see a 4.8% rise this year, driven by expansion in mining, services, and agriculture.

While much of Liberia’s problems in recent years have been buoyed by issues relating to rocketing exchange rates, the risks from climate change, according to the World Bank could undercut the economy and push more Liberians into poverty.

While Liberia is among the lowest emitters of greenhouse gases responsible for global climate change, the WB says Liberia is still among the most vulnerable countries to climate impacts. “For instance, rice – Liberia’s main staple – is highly reactive to increased humidity, extreme temperatures, heavy rainfall, and the pests that flourish under these conditions. The CCDR finds that Liberia’s rainfed rice production could be reduced by up to 13 percent over 2041-2050 from climate change compared to the baseline scenario. The resultant decrease in income and heightened reliance on costly imports could exacerbate poverty and food insecurity for many Liberian households.”

While the Boakai administration has outlined its vision for Liberia’s development through the ARREST agenda – an acronym representing Agriculture, Roads, Rule of Law, Education, Sanitation, and Tourism, the first six months have been dominated by the quest to fill hotly-contested job opportunities and the ongoing struggle to complete the budget process.

In the coming days, the government which recently established an Assets Recovery and Property Retrieval Taskforce to pursue allegations of illegal acquisition of wealth and property, is expected to commence prosecution of officials of the former government in hopes of improving concerns lingering in the donor community, that the government has taken its eyes of the ball, regarding transparency and accountability. All this as the country is experiencing rising inflation driven by increases in transport and food prices.

Diplomatic and political observers all agree that the choice for the President is simple: Tip a minister with the right pedigree on the economy and the respect of international stakeholders and the donor community.

Since the resignation of Mr. Kamara, President Joseph Boakai and close aides have been struggling to find a replacement capable of resurrecting the failing economy. In recent days however, FrontPageAfrica has learned that a series of unforeseen circumstances have made the president’s decision rather complicated. FPA takes a look at the five names being thrown around the corridors of the Executive Mansion, and how the President and his inner circle are handling the delicate dilemma.

AUGUSTINE NGAFUAN

At the time of this report going to press, the former Finance Minister and current Country Manager for African Development Bank was, according to close aides to the Presidency, in pole position to get the nod, but certainly not a lock in.

Following Mr. Boakai’s election, Mr. Ngafuan was heavily touted for a role, although he is said to have ruled out leaving his current position with the ADB for a return to a Cabinet post.

While the former minister is said to be the president’s top pick to replace Mr. Kamara, there is said to be some opposition within the UP over the pick, owing to what some see could be the resurrection of an old issue. In October 2015, Mr. Ngafuan resigned as foreign minister after hinting at his plan to contest the 2017 presidential elections. The move was in keeping with the National Code of Conduct. Mr. Ngafuan, realizing he would struggle to get on the UP ticket, joined the Victory for Change Party (VCP). However, Mr. Ngafuan’s play was cut short after the VCP Standard Bearer, Marcus Jones, citing timing, declared that Mr. Ngafuan was not qualified under the VCP’s constitution to run for any position with the party. At the time, the VCP Chairman Emmanuel Tulay countered that there was no such qualification for candidates in the VCP’s constitution. In May 2017, Ngafuan had stated that he was no longer seeking the presidency because he did not want to run against the UP candidate, Joseph Boakai, who he went on to endorse in the 2017 elections, won by Weah.

The 2017 debacle is giving rise to growing concerns that Mr. Ngafuan’s political interest could upset some within the party, looking to eye the Presidency, in the event President Boakai decides not to seek a second term. Additionally, Trust issues with Vice President Jeremiah Koung and the influential Bong Senator Prince Moye as well as Mamaka Bility could pose stumbling blocks to Mr. Ngafuan.

DR. GEORGE FONDERSON

The current Board Chair of the Liberia practice of international accounting firm, Baker Tilly, is a Certified Public Accountant (CPA) accredited in Washington DC, USA, and a Chartered Professional Accountant accredited in Ontario, Canada. As Chairman of Baker Tilly Liberia, George oversees activities relating to the firm’s strategy and international alliances. He sits on the network’s Africa Managing Partners’ Committee.

A Fulbright Scholar, Dr. Fonderson could bring a fresh face, credibility and pedigree to a ministry that has had its issues over the past few years. Dr. Fonderson studied finance and international business in the USA, and holds a Doctorate in Business Administration. Additionally, he is a member of the Liberian Institute of Certified Public Accountants, the Institute of Chartered Accountants of Ghana, and the Institute of Certified Public Accountants of Kenya. He has had an active professional career as a senior-level executive, international business consultant, audit professional, strategic advisor, and educator for more than 35 years.

Fonderson was previously a Partner at Deloitte, an international  Big-4 accountancy firm, and held senior roles in the firm’s international network, including Director of Operations (Liberia), Board Member and Head of West Africa Consulting Operations (based in Accra, Ghana), Education Coordinator for Africa (based in Johannesburg, South Africa), Regional Coordinator for Africa (based in Pretoria, South Africa), Board Member and Partner-in-Charge of East Africa Risk Management Services (based in Nairobi, Kenya) and Firm Director (based in Toronto, Canada). During his tenure with the firm, he was privileged to represent the Africa Region on the network’s Risk Management and Information Technology Committees for the Europe, Middle East and Africa (EMEA) Region.

Fonderson is a former lecturer at the College of Business and Public Administration, University of Liberia and is past Secretary-General of the Liberian Institute of Certified Public Accountants (LICPA). He has chaired many of the Institute’s standing committees and remains keenly involved in the development of the accounting industry in Liberia. He has been a member of the Technical and Standard Setters Forum of the Pan African Federation of Accountants (PAFA) and has served on the Editorial Board of the publication, Finance and Accounting Policy Pro Manual, published by First Reference in Canada. Fonderson is also a past Vice President of the Liberian Business Association and, in 1994, received the association’s Distinguished Personality Award for his contributions toward the development and enhancement of Liberian business initiatives. He is currently a member of the Board of Empowerment Squared (Liberia).

While Dr. Fonderson brings a wealth of experience, education, and financial governance expertise needed at the ministry, some insiders advocating for a person of such pedigree fear that his apolitical persona is rattling feathers. It is unclear whether Fonderson, who previously turned down a request from the administration of former President Weah to serve as Governor of the Central Bank of Liberia, would be interested in the post, although some minority members of President Boakai’s inner circle are said to be pushing for it. Fonderson was eyed to replace Governor Nathaniel Patray, but reportedly told the government at the time that he was committed to various international projects and engagements, making it virtually impossible for him to accept the role.

JOHN SEMBE MORLU II

One of Liberia’s brainy economists brought instant credibility to the Boakai and Unity Party campaign in the 2023 election although he was sidelined after Mr. Boakai’s victory.

Mr. Morlu was recruited by the European Union in 2006, after an extensive international search to become the Auditor General of Liberia in the Ellen Johnson-Sirleaf government. He assumed office in April 2007 and his tenure ended in April 2011. Morlu has extensive background in public accounting and management consulting, working major companies in the USA such as Unisys and BearingPoint.

During his tenure as Auditor General, Mr. Morlu produced more reports, including financial, compliance, internal controls, operational, and also fraud investigative reports that indicted high-profile officials. Morlu’s audits are highly covered by local and international media including Newsweek, Businessweek, and Africa Confidential. Morlu’s audit reports are also referenced in State Department Reports and UN Secretary General’s Reports to the Security Council on Liberia. Morlu is highly credited for financial management improvements in Liberia. He is a CPA in the District of Columbia. He also holds multiple professional certifications include CFE, CMA, CIA, CITP, CGMA, CGFM, CGA and CFM. Morlu holds an MBA in Finance from Johns Hopkins University, a Masters in International Commerce and Policy from George Mason University and double bachelors in Economics and International Relations from the University of Virginia.

Mr. Morlu’s wealth of experience comes with a no-nonsense approach that some in the president’s inner circle dislike, although it could be just what is required to restore faith in the economy and clean up the mess at the ministry.

For over 12 years Morlu has played his hands in the private sector by running his international accounting and management consulting business spanning offices in USA, Kenya, Zambia, Gambia, Sri Lanka and Malaysia. He is a strong advocate for private sector led growth to create Jobs.

Since the election of Mr. Boakai, Mr. Morlu has been highly critical of some of the early lapses.

Known not to mince his words, Mr. Morlu took aim at the ongoing Yellow Machines saga this week, raising concerns about the President’s controversial letter to the national legislature. Said Mr. Morlu, in a pointed message to the UP-Rescue Team: “Once you take custody, the risks and ownership have passed to you. Why can’t Uncle Joe simply say we made a mistake, apologize, and ask the Legislature to regularize the situation? Regularizing such mistakes is common in a democracy, but the truth must first be established. This is done in the USA through the Anti-Deficiency Act. Uncle Joe cannot believe the content of his letter is true and fair. This letter will send shockwaves internationally, as you cannot conduct government business based on friendship and gentleman’s agreements.”

MOLLEY KAMARA

The current senior Economic Advisor to the President is regarded as a recluse with a temperamental side, although some close aides and associates would differ. Until the Boakai administration, not much was known about Kamara. Following his appointment, Mr. Kamara informed FrontPageAfrica that he is a graduate of Rutgers University – New Brunswick (undergraduate Economics) and MBA Finance and Entrepreneurship from the Wharton Business School.

In 1998, Kamara was an economic advisor to Benjamin William Mkapa who was the third President of Tanzania – from 1995 to 2005.

In 1995, Mkapa was elected as president based on a popular anti-corruption campaign and the strong support of former president Julius Nyere. Mkapa’s anti-corruption efforts included creation of an open forum called the Presidential Commission on Corruption (Warioba Commission) and increased support for the Prevention of Corruption Bureau. On his Linked-in page, Kamara says he served for less than a year working on a Supply Chain with a United Nations project in 2009. His second five-year term of office as president ended in December 2005.

Kamara is credited with providing financial and moral support to the President’s campaign. While Mr. Kamara is said to have strong ties to President Boakai as well as former Speaker Alex Tyler, his perceived temperament is said to be used by some to rule him out of the running for the coveted post. Some insiders say, the Economic advisor, while on a recent trip with the President, lost his cool. The incident is reportedly being used by some of his detractors to shoot down his quest for the post. As this story went to press however, multiple sources confirmed to FrontPageAfrica, that Kamara is still very much in play.

JOHN B. S DAVIES

Mr. Davies, the former President of the Liberia Bank for Development & Investment, is currently the Managing Director and Corporate Secretary of the Board of Directors of the Fouta Cement Corporation, the second Largest Manufacturer of Cement in Liberia.

In recent days, some insiders say, his name has come up on the radar as a possible replacement for the departed Boimah Kamara, although some close associates to the President, obsessed with bringing in anyone who worked in previous government on board, are said to be pushing against the move.

Mr. Davies made this transition from Banking to Industry in September 2022 having retired from the LBDI. Mr. Davies assumed the authority of CEO at LBDI in January 2012 having previously served as the Comptroller and Accountant General of the Republic of Liberia from May 2010 to January 2012.
Evidently Mr. Davies has extensive professional experience in Fiscal and Monetary Policy Areas of the Economy as is evident from the many key areas of experience. Mr. Davies as CEO oversaw the Bank’s Strategic and Operational Plans and served as a member of the bank’s board of directors.

Mr. Davies also held directorship positions on several public sectors boards including the National Fisheries and Aquatic Authority, the Liberia Renewable Energy Commission, and the Forestry Development Authority. In the private sector, Mr. Davies was the Executive Chairman of the Liberia Bankers Association comprising of all nine commercial banks in Liberia from 2013 to 2022.

The former LBDI boss ascended to the position of President of the West Africa Bankers Association in 2019. He was a member of the Board of Directors of the Banking Institute of Liberia (BIL), an institution he helped to establish as one of its original incorporators. He is also a member of the executive committee of the Liberia Chamber of Commerce and former director on the boards of ACTIVA Insurance and the Liberia Cement Corporation.

Mr. Davies is a member of the Board of Trustees of the African Methodist Episcopal University. Mr. Davies’ educational sojourn includes laurels from several institutions of higher learning. He graduated from the University of Liberia with a BBA Degree Magna Cum Laude in Accounting in 1998 and a Masters of Accountancy Degree in 2005 from Belmont University in Nashville, Tennessee He also holds a diploma in public financial management from Duke University, Raleigh North Carolina. Mr. Davies was awarded Honorary Fellow of the Chartered Institute of Bankers of Nigeria (FCIBN) in 2020. Other laurels include certificates in Strategic Planning, Systems Management, Financial Forecasting, and Banking Systems. As Managing Director of Fouta Cement, Mr. Davies has already ensured accession of the corporation to the ECOWAS Trade Liberalization Program, enabling the institution to sell its product across all member states of ECOWAS.

Additionally, Mr. Davies successfully took the corporation through the Commissioning Phase of its operations. Mr. Davies’ reign as CEO of LBDI witnessed the Bank’d transition to become one of Liberia’s largest retail banks, most capitalized bank, and officially a MasterCard partner, a Nobel payment systems partner, and mobile money enabler. The Bank also concluded and welcomed the ECOWAS Bank for Development and Investment (EBID) as an equity partner and shareholder and concluded trade finance agreements with the Arab Bank for Development and Economic Cooperation (BADEA), the African Export and Import Bank (AFREXIM) and the United States Export Import Bank (US EXIM).

As President of the Liberia Bankers Association, Mr. Davies was one of the original incorporators of the Banking Institute of Liberia and also supported the establishment of a strategic partnership between the Chartered Institute of Bankers of Nigeria and Liberia Bankers Association, leading with the administering of qualification exams for Liberian Bankers. Under Mr. Davies’ leadership, the Banking industry witnessed the first official multibank syndication of big-ticket financing transactions in the public and private sectors.

The Surmountable Task

For the immediate future, President Boakai, limping toward the end of his first year in office, is running out of time to show the donor community and electorate that his government is up to the task of fixing the economy and turning Liberia’s economic misfortunes around. The burden however will rest on the shoulders of whoever the President finally decides on, a decision that will likely make or break the Unity Party’s second shot at state power.

For the foreseeable future, the next Finance Minister has a daunting task on the horizon. Economic and political observers say, whoever is chosen has to first have a hard conversation with the Chief Executive of the Republic on issues bordering on the regime’s initial scorecard on transparency, accountability and public perception of old-order type complacency in public financial management.

Secondly, the restructuring of the core economic pillars on which economic growth must be anchored cannot be given lip service as is being viewed. Youth empowerment through education and jobs, more innovative ways to grow the economy using progressive alternatives other than donor-driven budget support and IMF External credit, the health sector, and a bold agriculture revolution, should all claim this Finance Minister’s attention.

Without a doubt, these and many more will be required. However, that conversation, some say, must be part of the chosen one’s startup engagement with the regime including saving the yellow machines snafu. How these inner circle conversations shape up will be key.

The resignation of the finance minister on the heels of the 26th economic season raises concerns about its potential impact on fiscal policy and the economy. Economists say the slow disbursements to spending entities reported in the 2024 First Quarter Budget Execution Report, despite substantial revenue collection, could have a contractionary effect on the economy and the government’s capacity to provide essential services, and risk the 4.8% projected growth rate.

While it’s possible that the low spending by MFDP was due to the slow formation of the Government, it would be advantageous for the President to swiftly announce the appointment of a successor to mitigate any potential disruptions. This is especially crucial as we approach the anticipated heightened economic activities around July 26th (Independence Day Economy).

For now, aides say, the President is in a rather tricky but complicated predicament. The fact of the matter is, the next minister could either prove pivotal for the ruling party’s agenda – or further cement the uncertainty of Liberia’s economic and political future.

The appointment of Anthony Myers as acting Finance Minister is seen by some as a high risk to theft and fraud and defeats the check and balance mechanism to safeguard public money. One financial analyst noted that Myers cannot be approving payment as acting Minister and vetting payments for disbursement as deputy minister for fiscal affairs.

A source closed to the Executive Mansion told FPA Sunday that the appointment is only for a few days as President Boakai comes close to a decision that could define the direction of his presidency.

Source: Frontpage Africa