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Central Bank To conduct Forensic audit at Grand Kru MC2 Bank

District #2 Representative Hon. Cllr. Jonathan Fonati Koffa has requested a comprehensive audit of the Mc2 Bank (Grand Kru Rural Community Financial Institution) in Grand Kru County.
According to report, Rep. Koffa’s call for audit is due to prolong civil servants complaint about delay and irregularities in handling their salaries by Mc2 in the County. It is reported that some civl servants have not been paid for 8 months, and some five -six months in the County. Cllr. Koffa said because the Mc2 Bank appears to be operating in secrecy and salience coupled with numerous complaints from customers and civil servants he wants the Central Bank, which is the regulator to intervene to resolve that matter.

Rep. Koffa’s communication dated May 5, 2020 to the Executive Governor of the Central, requested the bank’s Bank to conduct a comprehensive audit of the Grand Kru Rural Community Financial Institution (GKRCFI).

“I present my compliments to you and have the honor to request a full and comprehensive audit of the grand Kru Rural Community Financial Institution (GKRCFI), which was chartered by the Central Bank of Liberia on March 28, 2014. The purpose of the establishment of the Bank was to further assist in the government’s decentralization program especially in the area of financial service primarily with Ministry of Internal Affairs and Ministry of Education payrolls in the County”, the communication read.

Rep. Koffa said the operations of the bank in the county have created serious concerns and trepidation among citizens. He said the bank appears to be involved with racketeering and syndic corruption.

Representative Koffa: “While this still remains a noble and lofty goal, the operations of the GKRFI over the years have raised serious concerns and trepidation among citizens in the county and customers of the bank. Regrettably, it appears that the bank is perceived and operates as a racketeering, corrupt and influenced organization.

Cllr. Koffa said only an independent audit can reveal the truth of the operations of the bank to restore public confidence in establishing the way forward with its operations

Rep. Koffa: “I am therefore requesting that the Central Bank, as the regulator, audit or caused to be audited the GKCRFI. Many of the permanent citizens serve on the board of the bank and many others are shareholders. It will be proper that a full audit is done so that the bank is brought in the ambit of transparency and accountability and the full faith of the citizens and customers restored. Only an independent audit can reveal the truth of the operations of the bank to restore public confidence in establishing the way forward with its operations”.

The District #2 Representative also in separate communication requested the Manager of Mc2 Bank to provide to his office annual reports of six years covering the period the bank has existed.
The District #2 Representative said as shareholder and Representative of the District where the Bank operates, his office needs update about the bank.
“As shareholder of the Grand Kru Rural Community Financial Institution (GKRCFI) and representative District #2 where the institution is physically located, I am requesting that you provide my office copies of the annual reports for the last six years from the inception of the bank”.

The Lawmaker said obtaining copies of annual reports was necessary due to the numerous complaints he has received from his constituents on the operations of the institution.
“These reports are necessary in light of numerous complaints I have received from my constituents on the operations of the institution”, Hon. Koffa said.
Meanwhile, the office of District-2 Grand Kru County Representative, Hon. Cllr. J. Fonati Koffa has issued press release calling for calm stating that its attention has been drawn to the perennial salary delay of civil servants both from the Ministry of Internal Affairs and the Ministry of Education in Grand Kru County.

The release said in line with the many concerns being raised by people via text messages and phone calls, and consistent with his promise in this year’s Annual Report, the Lawmaker in relation with his oversight responsibility has written the Governor of the Central Bank of Liberia (CBL) to conduct a forensic AUDIT of the Mc2 Bank in the county so as to establish the complexity associated with the payment of civil servants salary in Grand Kru. The release said the Bank Manager Mr. Augustine Fannoh was also written to provide a comprehensive Report of the Bank activities during the period under review prior to and after his ascendency as Bank Manager.
“Hon. Cllr. Koffa is appealing to our citizens to remain calm and civil as we all await the report from the Central Bank Of Liberia and the office of the Bank Manager of the Mc2 Bank in Grand Kru, the release said.
The release said the essence of that Bank is to up hold government’s policy of Decentralization in addressing the numerous challenges that civil servants go through in having access to their earned wages and labor.
However, Mc2 Manager has welcomed the Lawmaker’s call for audit of his institution. Mr. Augustine Fonnah said reputable auditing firms through AFriland Bank annually audit Mc2. The rural banker said his institution does not owe any civil servants in the county contrary to allegation made against him by citizens. Some citizens of the County believe that the delay to pay civil servants salaries is due to mismanagement at the bank.
Mr. Fonnah in response revealed that the Central Bank has continuously denied Mc2 Bank assess to its deposit. The Manager said though it is the responsibility of his bank to raise money to liquidate government’s payrolls, he said it is impossible for Mc2 bank to raise 16 million monthly to pay the more 700 civil servants in Grand Kru Country.
Also speaking to Womenvoices in an exclusive interview, the Superintendent of the County, Madam Doris Yltun said the delay in getting the Central Bank to transmit money to Mc2 is responsible for salary delay in the county. Responding to allegation of crediting huge amount from the bank that has made the bank incapable to pay civil servants on time, the female superintendent clarified that she stood for someone that credited only one hundred fifty thousand Liberia dollars and has since paid. Other than that, she said Afriland Bank credited her twelve thousand United State Dollars during her campaign and her records are clear for timely and complete payment. Madam Doris is the immediate former Board Chair of the bank.
Nevertheless, Womenvoices has established that neither the board members nor shareholders of Mc2 have ever met for the last six years since 2014 when the bank was established. Womenvoices has also established that Rep. Fonati Koffa has shares in the bank. At the time Cllr. Koffa acquired shares, Grand County needed seed money to establish the bank. The establishment of Mc2 brought relief to the people in the county. It remains as a wonder that the office of Rep. Koffa, a shareholder, is not furnished with annual report of the bank. The District #2 Lawmaker said he invested in the bank to bring relief to his people. Recent development in the county seems to kill his dream of bringing financial relief to the people of Grand Kru County.
Grand Kru County is one of many rural counties in Liberia that is challenged with operating effective financial institution

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