By Alusine Fullah
The object for which the Audit Service is established is to audit and report on all public accounts of Sierra Leone and all public offices including the Judiciary of Sierra Leone, the central and local government institutions, the university of Sierra Leone and other public institutions of like nature, all statutory corporations, companies and other bodies and organizations established by an Act of Parliament or statutory instrument or otherwise set up wholly or in part out of public funds.
In line with the foregoing, as mandated by law, the Audit Service Sierra Leone audited the National Social Security and Insurance Trust. During the course of the auditing, Audit Sierra Leone found out that the foregoing amount of money was inappropriately managed by the commission, NASSIT.
The report states that there is a problem of non-submission of key investment documents. It states: “Non-submission of Key Investment Documents The following documents were not made available for inspection: i) Investment property worth SLE368, 848,581 ii) Updated investment appraisals for both completed investment property and investment property under construction. iii) Updated Financial Statements, Strategic and Business Plans, Memorandum and Article of Association, Share of Profit/Returns on Investment as proof of successful operations of its Associate and Joint Ventures Investments worth SLE22, 132,305.
In the absence of these documents, we were unable to ascertain the valuation, profitability and returns on investment for the period under review. Debenture agreements/deeds for total corporate debentures worth SLE140, 526,247 were also not submitted for inspection. We were therefore unable to determine the redeemable period, interest rate and returns on these investments.”
Responding to the Audit Service’s observations, NASSIT responded that the concerns of the auditors’ risks and recommendations… The Trust will ensure that updated appraisals are carried out on all completed investments with the view of making them viable so as to generate the returns expected of them.
The report further notes that there have been huge poor management of investments in Subsidiaries and Debentures. The report reads: “We observed that the investments in subsidiaries worth SLE513, 897,148 were either not managed, controlled or effectively monitored to ensure profitable and positive returns on investment to the Trust.”
Moreover, the report also notes that insurance cover certificate for property, plant and equipment with the exception of land and motor vehicles worth SLE123, 983,372 were not provided to the audit team for inspection. NASSIT responded that the Trust will ensure that insurance cover is provided for all of its property, plants and equipment.
