The Deputy Speaker of Sierra Leone’s Sixth Parliament, Hon. Ibrahim Tawa Conteh, has exposed significant breaches of contract and cheating of government by SOCFIN Agricultural Company Sierra Leone Limited, which operates in Pujehun District.
During a Public Accounts Committee (PAC) hearing on the Auditor General’s 2021 and 2022 reports, Hon. Conteh revealed that SOCFIN has unlawfully utilized over 200 acres of land—more than ten times the concessionary land originally allocated to them by the government.
This revelation came to light on Wednesday, November 13, 2024, at the New Administrative Building in Parliament. Chairing the PAC, Hon. Conteh emphasized that SOCFIN must compensate the government for the additional land it has illegally encroached upon.
“SOCFIN Agricultural Company has exceeded the boundaries of the concessionary land granted to them, utilizing over 200 acres beyond what was agreed upon. They must pay for the extra land they have occupied,” Hon. Conteh declared.
The Deputy Speaker further criticized the company for failing to adhere to its investment commitments while continuing to exploit the country’s resources. “SOCFIN claims they have exhausted their investment funds and are unwilling to inject further capital.
Despite this, they continue to benefit from government resources. Such behavior cannot go unchallenged,” he added.
Expired Contract and Tax Implications
Hon. Conteh also highlighted that SOCFIN’s agreement with the government, originally signed in 2012, had expired in 2022. For one year, the company operated without a valid contract before the agreement was irregularly renewed in 2023 under the then Minister of Trade and Industry, Ibrahim Sesay.
“The agreement was not ratified retrospectively, and SOCFIN operated for a year without legal authorization. This is a serious breach that needs immediate rectification,” Hon. Conteh stated.
In light of these revelations, the Deputy Speaker instructed the National Revenue Authority (NRA) not to grant any corporation tax benefits to SOCFIN. “The company is not eligible for any tax relief or government incentives, especially given their contract violations and failure to invest further,” he affirmed.
The Deputy Speaker’s firm stance underscores the government’s commitment to holding companies accountable for contract breaches and ensuring they fulfill their obligations to Sierra Leone. The revelations have sparked renewed calls for stricter oversight and enforcement of agreements with foreign investors operating in the country.
The PAC is expected to follow up on these matters in future sessions to ensure compliance and accountability from all stakeholders involved.
