‘LBDI Has No Plans to Shut Down’

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An official statement from LBDI says the bank continues to remain financially sound.

The Liberian Bank for Development and Investment (LBDI) says a publication in the Monday, September 2, 2019 edition of the In Profile Daily Newspaper, captioned: “LBDI TO SHUT DOWN?” is far from the truth. The story, also lifted in the GNN Online Newspaper, speculates a possible shut down due of the Bank to borrowers’ default payments.

The In Profile Daily and GNN Online news articles pointed to allegations that Minister of State Nathaniel McGill and a road contractor, Tony Lawal, Chief Executive Officer of Praise Gloria Lawal, both took loans worth hundreds of thousands of United States Dollars from LBDI and have defaulted on said loans.

In a brief chat with the Daily Observer, LBDI President John B. S. Davies described the story published by those two news organs as “fake news”.

Lewis Glay, editor of the In Profile Daily, told the Daily Observer that though he did not personally handle the story before publication, he knows and trusts the work of the reporter who wrote the story.

An official statement from LBDI says the bank continues to remain financially sound.

“LBDI wishes to assure its valued customers, stakeholders, partners and the general public that despite the general economic challenges, the Bank continues to remain financially sound and assures the public that all of its Branches across the country remain open for business,” the statement said.

It continued: “The Management of LBDI, with the approval of its Board of Directors, is currently undertaking major enhancements in its digital financial services through a migration of its Core Banking Software. ATM services and other business processes to provide more convenience to its customers. We are aware that these reform exercises are adversely impacting service delivery across the Enterprise. The Bank encourages that press and other stakeholders to join the transformation initiatives.”

3 COMMENTS

  1. Good news. But since conventional wisdom teaches that where there is smoke there is fire, it might have been useful for LBDI to go the extra mile by confirming that, at this point anyway, the specific loans cited are in fact being repaid on schedule.

  2. This is no good news. Banks make money from stocks, loans and other investments. Not the least on savings deposits on which banks in fact spend or lose money. So what could be the investments in Liberia so much on which banks could reap a happy return on their loans? And by the way, the defaults mentioned in this story just happen to be a tip of the iceberg, with especially government officials topping that list. Another bank even went one step further two years ago and out of desperation if not frustration, by publishing a list of indebted government officials. I’m not sure if that bank is even still in business today. Sadly this is the history of banks with government officials in Liberia. They take bank loans and never pay back. The catch being banks are put under the impression that these officials are their guarantors and protectors while operating in Liberia. Can LBDI go after McGill, for example? The “president” depends on McGill for his job. So the bank will just have to suffer or pass that other loan as bad debt. Add Mulbah Morlue, Jefferson Kojee, Acafrous Gray and the rest of the CDC hangers-on to that list and you see the whole picture. All of them took loans from that and other banks in Liberia, which they’ll never pay back. In fact, those are the very monies they use as caveats or smokescreens for fleecing us. Ask any of them where they got the money from to build the mansions or expensive cars or to support their current opulent lifestyle and they’ll tell you, “I borrow the money from the bank.” Perfect alibi. Such a syndicate of thieves!

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