Audit Report Uncovers Massive Corruption
The 2023 Audit Report, recently tabled in Sierra Leone’s Parliament, has unveiled significant instances of corruption and financial mismanagement within various government ministries and agencies.
The report highlights unauthorized cash withdrawals, double salary payments, and salaries disbursed to non-existent employees, collectively amounting to nearly US$1.5 million.
Furthermore, the report has uncovered significant non-compliance with contractual agreements involving key government partners, resulting in substantial financial losses for the country.
The report details lapse in royalty payments, unpaid fees, and questionable tax exemptions, raising concerns about the oversight and enforcement of government contracts.
HID CID Ltd., the contractor responsible for producing e-passports, failed to remit a 9% royalty to the Government of Sierra Leone as stipulated in the contract change note. The report reveals that the company owes the government $744,993 for e-passports produced in 2023. This shortfall deprives the government of critical revenue needed for public services.
Zoodlabs (SL) Ltd., which manages the ACE Submarine Fibre Optic Cable Landing Station, owes the government $1.44 million in annual fixed fees. The non-payment jeopardizes the operations and maintenance of the country’s crucial digital infrastructure and raises questions about the government’s capacity to enforce payment terms.
The report also highlights procedural breaches in a lease agreement between the Ministry of Mines and the Kingho Railway and Port Company Limited. The agreement was signed by the Minister of Mines rather than the Minister of Finance, in violation of the Public Financial Management Act, 2016. Furthermore, the agreement was not ratified by Parliament, casting doubt on the legality of $5,275,434 in tax exemptions granted to the company.
The findings have prompted calls for increased oversight and accountability in government contracting. “These lapses represent significant revenue losses for the government and undermine public trust,” the report states, urging corrective actions and stricter enforcement mechanisms.
The revelations underscore the need for reforms in contract management to ensure transparency and protect public funds in Sierra Leone.
Notably, the report omits any assessment of the financial management practices within the Offices of the President, Vice President, and First Lady. This unprecedented exclusion has raised concerns among civil society groups regarding the report’s comprehensiveness and the potential shielding of high-ranking officials from scrutiny.
This development follows the 2020 suspension of then Auditor General Lara Taylor-Pearce, who was known for her rigorous audits of government finances. Her suspension, ordered by President Julius Maada Bio just a month before the release of the annual audit report, led to speculations that it was intended to prevent the inclusion of incriminating evidence against the administration.
The Anti-Corruption Commission (ACC) has been active in combating graft, presenting its 2023 Annual Report to President Bio and reaffirming its commitment to anti-corruption efforts. The ACC has undertaken public sensitization, prevention initiatives, and enforcement activities across major regions, contributing to progress in the fight against corruption.
Despite these efforts, the recent audit report’s findings and omissions have intensified public scrutiny over the government’s transparency and accountability, particularly concerning the financial dealings of the highest offices in the country. More details on this in our subsequent editions.
