By Marcus A. Bangura
Audit Service Sierra Leone (ASSL) is the supreme Audit Institution in Sierra Leone, headed by the Auditor-General, who has the mandate to audit offices in the public sector- Ministries, Departments and Agencies (MDAs), diplomatic missions and state enterprises among others as stipulated in section 119 (2) of the Constitution of Sierra Leone 1991, Act No. 6. 1991.
The Auditor General is supposedly appointed by the President and approved by Parliament and his status is equivalent to a Supreme Court Judge. The Auditor General is expected to be a member of the International Organization Supreme Audit Institution (INTOSAI) and to implement the International standards for Supreme Audit Institution ISSAI) framework.
In addition to the Constitution, public sector auditing is regulated by Public Finance Management Act 2016, as provided under Section 87(1) and Section 16; Audit Service Act 2014; Audit Service Act 1998, Financial Management Regulations 2007; Government Budgeting and Accountability Act 2005, Local Government Act 2004; Public Procurement Act 2004; Education Act 2004, Appropriation Act 2003; Income Tax Act 2000.
By and large, each year, ASSL ‘’conducts the audit of Financial statements, compliance with relevant legislation, performance audit, and the audit of information technology systems within Ministries, Departments and Agencies, and other institutions of like nature’’ Auditor-General says.
However, the re-occurrence of the findings and recommendations of ASSL to the Government of Sierra Leone have been going on for some time for quite too long but for the delays or failures of public officials or duty bearers to take heed to the recommendations proffered in the annual Auditor-General Report. MDAs, diplomatic missions and state enterprises have reneged from doing the needful and save state coffers from liquidating in oblivion.
Over the years, the reports have exposed financial irregularities and despite the damning reports published by the Auditor–General, nothing seems to change. The state of affairs continued beyond reproach. The roof of our state coffers continues to leak more than ever at the expense of the ordinary man, who continues to live in abject poverty, suffer hardship, high cost of living, inflation and tax pain.
The Government through the Public Account Committee (PAC) in the Parliament of Sierra Leone and the Anti-Corruption Commission has done very little to hold public officials or duty bearers to account for irregularities in the implementation of projects and misappropriation of state coffers, making corruption attractive.
From the findings and observations made in the Auditor General Report 2022, it is without prejudice to say, corruption still thrives in Sierra Leone, irrespective of the high ratings made by the ACC in the fight against corruption in the country and for which top notched government executives walk shoulder high.
Essentially, suitable and well-timed implementation of audit recommendations is a critical and significant aspect for the realization of financial accountability, fiscal discipline; as a way to avert excess expenditure and improve the economy. The delay or failure in the implementation of ASSL recommendations has contributed immensely to financial irregularities and misappropriation of state funds causing unimaginable loses of colossal amounts of money with impunity. It goes without saying that the lack of dedication and commitment by MDAs, diplomatic missions and state enterprises to take heed on all audit recommendations to mitigate corruption and mismanagement of public funds or state resources, risk of fraud, theft, misappropriation of state assets undermines public finance management and creates the speed pumps against a transparent and accountable society
Fundamentally, the 2022 Audit Report presents a comprehensive analysis of the findings, recommendations and conclusions obtained from MDAs. According to the report, ASSL did a total of 108 audits in 32 Ministries and departments, 45 public enterprises and Commissions, 22 Local Councils, 6 diplomatic missions, and 3 performance audits. The findings captured financial irregularities. On account of the financial irregularities found, ASSL used their professional judgment to establish how public monies were used by the government in the manner intended by parliament in terms of the economy, efficiency and effectiveness. ASSL also reports to the citizenry through parliament, where the representatives of the people have been assembled. As per the mandate of ASSL, the Auditor-General in the form of a complaint to Parliament presented the 2022 report which contains the overall estimated financial impact of the irregularities within the public financial management system in MDAs, diplomatic missions, public enterprises and local councils. For 2022 MDAs cannot account for SLE 98,565, 422, which is equivalent to $969,443, whilst Diplomatic Missions estimated financial impact in 2022 amounts to $ 108, 768.00. For Public Enterprises the estimated financial impact runs at $ 113,507 and Local Councils at SLE 9.937,462.
The extent of financial impacts irregularities indicated above portrays the extent at which state coffers are depleted by public officials at MDAs with impunity. It’s no gain saying that spate of the misappropriation of state coffers makes the state public debt very high for which the country has been labelled to be at risk of high debt , which is to say, the country lacks the ability to pay its public debt. According to the Audit Report 2022, the total outstanding debt of the Government of Sierra Leone as at 31st December 2022 was SLE 47, 577, 345 870 which is 94% of the Gross Domestic Products (GDP). The report stated that domestic revenue of SLE 8, 088,376,00) cannot meet our debt service obligations which is around SLE 14,879, 143,000 for 2022. The report pointed at a total external debt amounting to SLE 35,607,013,870 is reported at the General-Purpose Financial Statement (GPFS) SLE 33,298, 061,466 which accounts for 96%.
In terms of wages , salaries and employee benefits , the amount increased from SLE 3, 769,446,000 in 2021 to SLE 4, 314, 179,000. The Report also delves into donor funded projects , public enterprises, and Commissions. The audit examinations of their financial statements show that these sectors failed to pay statutory deductions to NRA; made payments without supporting documents; lapses in salaries and payroll were identified; assets and stores were not brought to account and imprest /advances were not retired to show accountability . Some of these entities flout regulations in respect of security of fixed assets and most of them did not maintain fixed asset registers. The Report brought to light the observed irregularities with the financial impact of cross-cutting issues amounting to SLE 5,679,666 in 2019, SLE 3,972, 948IN 2020, SLE 4,231,904 in 2021 and SLE 178,780 479 ($113, 507 in 2022.
The Audit Report 2022 also identifies lapses in the audit of MDAs for 2022. Lapses found among MDAs during the audits are found in assets and stores that were not brought to account, statutory deductions not paid to NRA. the question of Imprest, poor management of revenue salaries and payroll issues, withdrawals and allocations expended without supporting documents, contracts and procurement issues among others.
To be continued in Part 2 – Watch out for Next Edition!!
