President Maada Bio has been involved in more extensive and gargantuan corruption than initially perceived, according to the just released 2020 Audit Report, which the SLPP government has been allegedly trying to suppress , culminating in the suspension of the Auditor General, Lara Taylor Pearce and her deputy.
As snippets of the audit report continue to be released, it is now become clearer why President Bio took offence with the auditor general and decided to remove him. It was SQUANDERMANIA at the Office of the President of Sierra Leone. It was grand theft and financial mismanagement at a scale unseen around the presidency in Sierra Leone.
We bring you an analysis of excerpts of the audit report pertaining to how money was squandered around the presidency.
BREAKING NEWS!!!!
Now we understand why President Bio suspended the Auditor General, Lara Taylor Pearce.
Massive corruption at the office of the president and vice president exposed by the Auditor General’s Report 2020.
Excerpt of the Auditor General’s Report- 2020
OFFICE OF THE PRESIDENT
3.60.1. Overseas Imprest not Appropriately Retired
Appropriate retirement details were not provided for payments with regard to US$135,000, an equivalent
of Le1,327,758,800, made for various overseas travels by HE the President and the First Lady.
We
recommended that the State Chief of Protocol should provide the necessary retirements; otherwise, the said payments will be disallowed and surcharged.
Official’s Response
The Secretary to the President (SP) in his response said: “This Office believes that the money in question i.e. US$135,000
provided as imprest for His Excellency the President and First Lady was utilised for that purpose. Retirement details in respect of imprests paid to His Excellency the President will however henceforth be obtained, in accordance with the Public Financial Management Act, 2016.”
Auditor’s Comment
The necessary original (as per the auditee), retirement details were made available during the audit verification process. Following detailed verification, inspection, and other standard audit checks, including
checks with third parties where applicable and possible, we concluded that:
the sum of US$110,000 or should be refunded by the payees (i.e. State Chief of Protocol and the Personal Assistant to the First Lady), as the retirement receipts were marred by discrepancies, inaccuracies and inconsistencies.
The receipts provided have also been disputed by the concerned third parties.
Further investigation to be carried on the transaction on PV No. 83325 of 10th March, 2020 for an
amount of $25,000 or Le247,254,500; the retirement receipt is marred by discrepancies,
inaccuracies, and inconsistencies.
These issues remain unresolved.
3.60.2. Overseas Travelling Expenses to Lebanon
A review of payment vouchers and supporting documents relating to the President’s travel to Lebanon revealed the following:
The circumstances that led to the selection of the company (a wholesaler and general distributor
of pharmaceuticals, toiletries, household goods and chemist) to provide private jet service is
unclear.
Original and true copy of receipts to support total payment of US$156,113.73 for hotel
accommodation and medical treatment was not submitted for audit inspection.
Travelling officers were paid excess Daily Subsistence Allowances (DSA) totalling
US$7,404 and US$564 was underpaid DSA.
Of the funds provided to cover the cost of medical bill for the President and subsistence
allowances, payments totalling US$73,416 was made to cover the cost of accommodation of eight travelling officers, even though full DSAs which amounted to US$75,852 to cover such cost had
been paid to them. This is an evidence of double dipping.
We recommended that the Principal Assistant to the Secretary to the President in collaboration with the
State Chief of Protocol and the Accountant should provide explanation supported by documentary
evidence the circumstances that led to the selection of the company to provide private jet service.
They
should also ensure that originals of receipts for hotelaccommodation and medical treatment are provided
for audit inspection.
In addition, the excess DSAs paid should be recovered and refunded into the CF, and DSAs of
US$564 be paid to the underpaid concerned; and the 70% of the entitled DSA totalling US$75,852 paid
to the eight travelling officers be recovered and refunded into the CF.
Official’s Response
The SP in his response said: “Please be informed that the choice of the company was done through the Office of the State Chief of Protocol (SCOP), after consultation with His Excellency the President.
It should be noted that the security of the President should not be compromised in making such a decision. Thus, searching for any available aircraft is not an option.
Regarding the payment of DSA above the normal rate, please see a minute in respect of an appeal for additional funds to be made available to the delegates given the expensive rates of hotel accommodation in Lebanon at that time.
The circumstances
at that time also warranted the officers to be in the same hotel with the President.
The observation that has to do with a refund of US$564 to a certain officer is not clear to this office.It is difficult to understand and appreciate the fact that money spent by the President on his officers would be regarded as
double dipping since the officials did not put in request for this, and that the money was given voluntarily by the President.
This gesture is common with every President from time immemorial. This is also a common practice between senior officers
and their juniors across all Ministries/Departments/Agencies (MDAs).”
Auditor’s Comment
We noted management’s response regarding the circumstances that led to the selection of the
company to provide private jet services. In the absence of a clear and detailed procurement
process, we conclude that it’s reasonable to enquire why a company whose main business is
wholesale of pharmaceuticals, toiletries, household goods and chemist, was selected to provide
private jet hiring services. We therefore conclude that this matter remains unresolved.
“Original” receipts all with dates in September 2020, to support total payment of US$352,481.77
for hotel accommodation and medical treatment was presented during the audit verification
exercise. We however concluded that one of the retirement receipts of US$156,113.73 for hotel accommodation
dated 18th September 2021, was marred by discrepancies, inaccuracies and inconsistencies. It was
also disputed by the concerned third party, whose record show that the bill remains outstanding.
In view of such discrepancies and dispute, the matter still stands and the amount of US$156,113.73
should be refunded by the payee, the State Chief of Protocol.
We noted that hospital bills to the value of US$170,489.04 were settled in cash at the hospital in question. The audit concludes that although the amounts had been paid and supporting documents
provided, in the interest of transparency, good public financial management practice, and
exemplary anti-money laundry reasons, we are of the opinion that such a settlement should have
been done through a bank transfer. Given the level of cash involved, the matter is being
highlighted as a reference for future transactions.
Regarding the overpayment of US$7,404 as per diem to officers, management’s response is noted;
however, it fails to clear the matter considering the fact that the cost of accommodation for these officers was covered by the imprest.
The audit concludes that until there is evidence of refund into the CF, the issue remains unresolved.
With regard to per diem of US$564 payable to the concerned officer, no evidence of payments
was made available for verification, therefore the matter remains unresolved.
With regards to the payment for accommodation for officers in receipt of full per diem (which is
usually meant to cover the cost of accommodation and sustenance) for traveling officers, the
accommodation element of 70% of the per diem is refundable, as the state cannot pay twice for
the same transaction.
The audit concludes that the sum of US$73,416 should be recovered from
the affected officers and paid back into the CF, and unless and until full recovery of these funds
are made, the issue remains unresolved.
3.60.3. Updated Asset Register not Maintained
We observed that items worth Le675,087,000 in respect of furniture and equipment may not have been recorded in an assets register, as an updated register was not presented for inspection. Assets could go
missing without trace.
We recommend that the Director of Estate in collaboration with the storekeeper at
the Office of the President should provide an up-to-date assets register.
Official’s Response:
The SP in his response said: “Please take note that action has been taken on your recommendation and there is evidence for
inspection.”
Auditor’s Comment:
An updated assets register was made available during the audit verification exercise.
Upon inspection of
the asset register, we observed that date of acquisition and unique identification numbers (codes) are yet
to be updated in the register, therefore the issue remains partly resolved.
3.60.4. Funds Utilised for Ineligible Activities
Total payments of Le15,688,500 made from the Operational and Administrative cost for the Office of the
First Lady was made towards activities not related to the operation and administration of the office, and
such are therefore deemed contestable.
We recommend that the head of Administration and Finance
should ensure that evidence of refunds of those contestable payments into the CF is also presented for
audit inspection.
Official’s Response:
The SP in his response said: “Documents are now available for inspection.”
Auditor’s Comment:
Until evidence of refunds into the CF of those constable payments totalling Le15,688,500 is presented,
this issue is considered unresolved.
3.60.5. Unutilised Funds not Remitted into the Consolidated Fund
The closing balance as at 31st December 2020 in the account of the First Lady stood at Le7,467,340,013.13
which was unused by the Office, was not returned into the Consolidated Fund as required by Section
124(1) of the Public Financial Management Regulations of 2018.
We therefore recommend that the head of Administration and Finance in the Office of the First Lady should provide an explanation supported
by documentary evidence why closing balance was not returned into the CF.
Official’s Response:
The SP in his response said: ‘The reason being that the Office would have starved for funds as allocation for a new financial
year is almost always delayed, and this would have hampered the operations of the Office, which has flagship programmes for
the vulnerable population, especially girls.”
Auditor’s Comment:
We note management’s comment on this matter. We conclude that not only did the Office of the First
Lady fail to comply with Section 124(1) of the Public Financial Management Regulations of 2018, it also may not have implemented activities for which these funds were provided; therefore, this matter is
unresolved.
OFFICE OF THE VICE PRESIDENT-
3.61.1. 50% Advance Payment instead of 30% and Advance Payment Guarantee not Submitted
An advance payment totalling Le250,000,000, which is more than 30% of the contract sum was made to
Malador Associate (SL) Ltd for the refurbishment of the Office of the Vice President, contrary to Section
135(3) of the Public Procurement Regulations of 2018 (PPR).
Advance payment guarantee was also not
submitted in contravention of section 135 (3) & (4) of the Procurement Regulations of 2018.
We recommended that the Procurement Manager should give explanation in writing supported by
documentary evidence, justifying why 50% advance was paid rather than the 30% as stated in the Public Procurement
Regulations of 2018.
Official’s Response:
The Secretary to the Vice President in his response said: “The Office of the Vice President and his front desk Officers’ offices were in very bad shape and needed urgent refurbishment. The Vice President requested that the entire job should be done
within three weeks. It was because of the above that the contract agreement spelt out for an advance payment of 50% whiles
the remaining was to be paid after the satisfactory completion of the contract.
Management notes the audit recommendation, the contract agreement is available for audit inspection but going forward,
management is assuring the audit team that it will not entertain such contract agreement.”
Auditor’s Comment:
The request of the Vice President to fix the front desk of his office did not in any way suggest that the
contractor should be paid 50% rather than a 30% deposit as per the NPPA Act of 2016.
We therefore conclude that the reason for the breach is unacceptable, and as a result, this matter remains unresolved.
3.61.2. Payments to Bereaved Families Without an Approved Policy
An amount totalling Le1,079,823,000 was paid from the Consolidated Funds by the Government of Sierra
Leone to bereaved families of deceased public officers for the year 2020 without an approved policy on
state funeral and related matters.
We also observed that retirement details were not provided to support
Le65,000,000 government contributions paid.
We recommended that these payments be disallowed and surcharged on the approving officers, except for evidence that these undertakings were in accordance with applicable laws or approved policy.
Furthermore, the Secretary to the Vice President should ensure that retirement details for the unretired
amounts be submitted for inspection.
Official’s Response:
The Secretary to the Vice President in his response said: “The policy for Civic and State Funerals and Government’s
Contribution to Bereaved Families had been drafted and sent to the Ministry of Finance for their concurrence.
Fortunately, the Ministry of Finance had sent their ‘no objection’ of concurrence. Cabinet paper on the drafted policy had been developed
and sent to Cabinet and now waiting for approval. A copy of the draft policy and Cabinet Paper are available for audit
verification.
Furthermore, the Ministry of Foreign Affairs and the House of Parliament had submitted the retirement for resources giving
to them in respect of the funeral of the late Mrs Agnes Dugba and Hon. Almamy O. Kamara. Whiles the remaining forty
million given to the Ministry of Local Government for the funerals of the late Paramount Chief Steven P. Bayon and
Paramount Chief Mohamed Soko Koroma Messi V was purely for traditional rights.
Management noted the audit recommendation, and therefore retirements and analysis of how resources for traditional rights
were spent is ready for audit verification.”
Auditor’s Comment:
The concurrence of the Ministry of Finance and the Cabinet Paper referred to in the Management’s
Response were both provided during verification. It was however noted that although the Financial
Secretary in his letter to the Secretary to the Vice President on 6th January 2021 states: “Given the very
importance of the Auditor-General’s recommendations spanning back several years, the Honourable Minister has requested that the matter be treated with the urgency it deserves.”
The
policy document as at October 2021 is still awaiting presentation to Cabinet for their approval; therefore,
the matter remains unresolved.
We verified retirement details of Le25,000,000 paid initially to the Ministry of Foreign Affairs for the
funeral arrangement of late Mrs Agnes Dugba. We were however not provided retirement details for
Le65,000,000 paid for the funeral arrangements of late Hon. Alimamy O. Kamara, PC. Steven P. Bayon
& PC. Mohamed Soko Koroma Messi V.
3.61.3. Payments without Justification
The sum of Le188,345,000 was paid out in cash to persons including “stakeholders”; Traditional
Performers, Bike Riders Association, Chairladies, Security Forces, Mami Queens, MedicalRepresentatives
and Paramount and Section Chiefs towards local travels by the Vice President without prudent justification
and in unverifiable circumstances.
We recommended that the Senior Accountant should ensure the submission of all supporting documents
to justify the payments made in cash.
Official’s Response:
The Secretary to the Vice President in his response said: “Some of the documents for the various trips made by the
Vice President outlined were with the Senior Accountant who died in Ghana in March, 2021. After his death, management
was constrained to gain access to the office of the deceased without his family members.
“The family of the deceased arrive a
little after the audit exit meeting, therefore retirement for various trips made by the Vice President outlined above are now
available for audit inspection and verification.
Moreover, appropriate retirements of the supporting documents mentioned by the audit team are also available for audit
verification”.
Auditor’s Comment:
The comments by the Vote Controller that records were kept in the sole custody of the late Senior
Accountant are a clear indication that were internal control weaknesses.
Notwithstanding, during verification, the office provided payment vouchers totalling Le1,121,798,000
together with some supporting documents. A review of those payment vouchers and the accompanying
supporting documents disclosed the details outlined below.
From Special Imprest of Le 277,370,000 paid on 23rd December 2020, for a three-days visit to
Kono, we observed Le68,510,000 was paid out in cash without prudent justification to Singers and
Dancers, Bike Rider groups, Paramount Chiefs, Petty Traders Associations etc, in contravention
of section 13 of the PFM Act of 2016.
From Special Imprest of Le96,788,000 paid on 6th October 2020, for a two-days visit to Bo, we
observed that Le9,190,000 was paid out in cash without prudent justification, to Traditional
Healers, Ataya Base Associations, Paramount and Section Chiefs, in contravention of section 13
of the PFM Act of 2016.
From Special Imprest of Le 271,560,000 paid on 30th September 2020, for a four-days visit to Bo,
we observed that Le30,630,000 was paid out in cash without prudent justification to
“Stakeholders”, Traditional and Cultural Dancers, Medical Representative, and Paramount Chiefs
in contravention of section 13 of the PFM Act of 2016.
From Special Imprest of Le205,020,000 paid on 27th May 2020, for a three-days visit to Bombali, Port Loko, Kenema and Bo Districts, we observed that Le44,480,000 was paid out in cash without
prudent justification to “Stakeholders”, Medical Representative, as tips in contravention of section
13 of the PFM Act of 2016.
From Special Imprest of Le271,060,000 paid on 7th December 2020, for a four-days visit to Bo,
we observed that Le35,535,000 was paid out in cash without prudent justification to
“Stakeholders”, Traditional Performers, Bike Riders Association, Chairladies, Security Forces, Mami Queens, Medical Representative as tips in contravention of section 13 of the PFM Act of 2016.
