Monrovia – In a solemn announcement, tears flowed as several contractors learned they would be dismissed by the management of the Central Bank of Liberia (CBL). The decision affects at least 203 contractors employed during the administration of former President George Manneh Weah.
The CBL stated that the termination of contracts for these contractors, along with six consultants, is a necessary measure in compliance with a recent agreement with the International Monetary Fund (IMF). This agreement is crucial for Liberia’s new credit facility, according to bank officials. However, political commentators have criticized the move, suggesting it continues the purge of Weah-era employees from government positions.
The CBL’s communication, addressed to House Speaker Cllr. J. Fonati Koffa on August 26, 2024, emphasized that the layoffs are driven by the bank’s unsustainable personnel costs amid its current financial struggles. The message, signed by the CBL’s Acting Governor, noted that as part of the new Extended Credit Facility (ECF) program for Liberia, the bank is required to significantly reduce its personnel expenses by terminating existing contractor agreements.
Plans to implement these layoffs are set for the end of August, ahead of the IMF Executive Board meeting scheduled for September 25, 2024, where the approval of Liberia’s ECF program will be discussed.
The CBL’s correspondence to Speaker Koffa highlighted the management’s obligation to act in the best interest of the country. To mitigate the impact of the layoffs, the bank has prepared a compensation package for the affected contractors and consultants, which includes payments for the unexpired portions of their contracts ending in September 2024.
In compliance with labor laws, the CBL has also informed the Ministry of Labor about its decision and is seeking the support of the House of Representatives to ensure a smooth transition.
As part of its institutional reforms aimed at enhancing efficiency and productivity, the CBL announced plans for a comprehensive, competitive, and transparent recruitment process, with technical assistance from the IMF.
Additionally, the CBL reiterated that the employment contracts for the 203 individuals set to be terminated will conclude following the successful completion of the Currency Reform project, mandated by the 54th National Legislature in a Joint Resolution of May 2021. The bank stressed its commitment to ensuring a respectful and amicable separation process that adheres to the labor practices laws of Liberia while providing necessary support and guidance to those affected.
