By Alusine Fullah

The Audit Service Sierra Leone (ASSL) is the principal audit institution of Sierra Leone, mandated by law to ensure that public funds are used efficiently and effectively. By law, it should be committed to promoting accountability and transparency in the public sector by conducting independent audits of government ministries, departments, and agencies.

Meanwhile, as the Supreme Audit Institution of Sierra Leone, the mandate of the ASSL covers the entire public sector, with the responsibility to audit the central and local government, public enterprises, the central bank, state-owned commercial banks, and other state-owned financial corporations. Section 119 of the 1991 Constitution of Sierra Leone and the Audit Service Act are the legal instruments through which this mandate was given.

In line with the foregoing, the 2022 Audit Report has exposed that Sierra Leone Ports Authority has for the past years massively engaged in Poor Debts Collection Mechanism.  The Audit Report reads: “Despite repeated audit recommendations to reduce outstanding debt collection from specific clients, the Sierra Leone Ports Authority continues to transact with some defaulting customers. The Authority’s Receivables Policy mandates customer payment within one month of invoicing and charges interest on debts not paid within three months.”

Apart from that, the Audit Report also made the following observations: The Sierra Leone National Shipping Company (SLNSC) owed the Authority SLE32,863,519 which had been overdue for 13 months.;  despite discussions with the Audit Committee of the Authority’s Board for Management to operate directly with oil companies dealing with the SLNSC, there was no evidence that oil companies were engaged by the Authority. However, the Authority continued to do business with the SLNSC during the year under review.; Bollore Transport and Logistics (BTL) and Integrated Solutions Services (ISS) Ltd. had debts totalling SLE2,614,961 (SLE126,495 to BTL and SLE2,488,466 to ISS Ltd.) for 12 months. This indicated that they were no longer conducting business with the Authority as there was no evidence of Management’s efforts to recover these debts.  The auditors recommended that the Financial Controller (FC) should ensure adherence to the receivables policy to collect debts owed by other clients of the Authority.

However, responding to the foregoing, the Management of Ports Authority noted that: “Management has maintained a systematic and sustained effort in the recoverability of disputed or contentious debts owed by the SLNSC, ISS and BTL. Letters and minutes of management and board meetings seeking recoverability are available for audit review. The nature of these debts and their sources are related-party in nature and thus issuing penalties and restraints on services are not plausible actions. On the options of operating directly with the oil companies, we have engaged the Petroleum Regulatory Agency (PRA) and they have commenced mediation. We shall consider advising the Board for a write-off of both the BTL and ISS debts for tract lacuna. Furthermore, the Authority has been engaging the relevant ministries to ensure that the respective debts are settled…”