IPAM Responds to $4.5 Million Corruption Allegation Amidst Bureh Town Campus Project

Officials from the Institute of Public Administration and Management (IPAM), University of Sierra Leone, defended their position regarding recent allegations involving the loss of $4.5 million to a Nigerian company in connection with a development project in Bureh Town, Western Rural Freetown.

The controversy centers on claims that IPAM ignored red flags and failed to protect public funds. During a briefing, Duramany Lakkoh, the consultant for the project, provided an overview of the proposed campus project. He explained that FEMAB Properties was introduced to IPAM by the Sierra Leone Investment and Export Promotion Agency (SLIEPA) in January 2016.

The idea for the residential campus was initially proposed by former Deputy Vice Chancellor Professor Allyson Sesay and Vice Chancellor Professor Ekundayo Thompson.

Lakkoh detailed that he was tasked with preparing a business plan and cash flow simulation for the project. This simulation was presented to the Public Private Partnership Unit (PPP) and reviewed by the Ministry of Justice, which advised on the joint venture agreement between FEMAВ Properties and the University of Sierra Leone through the Ministry of Technical and Higher Education.

On August 1, 2018, the Solicitor General sent a letter to the Ministry of Technical and Higher recommending Education, the finalization of the contract, pending approval from the Ministry of Finance.

The Ministry of Finance issued a letter of non-objection on August 2, 2018, and a contract was subsequently signed between USL and FEMAB Properties at the State House on the same day, witnessed by the Minister of Technical and ity Higher Education, Professor Aiah Gbakima.

Lakkoh and university officials highlighted new financial agreements that included breaking the project into milestones, with IPAM and – FEMAB jointly financing these milestones without guarantees. The revised structural proposals and new bills of quantities (BOQ) were also presented.

Lakkoh emphasized that the cash flow simulation was designed for private financing based on projected educational fees and student by enrollment rates. He reported  that the university had repaid $3.5 million of the loan taken to start the project.

On March 29, 2019, the  Ministry of Finance confirmed the government’s readiness to issue a $37.5 million  bank guarantee to cover repayment obligations under the development contract.

This guarantee was ratified by Parliament on July 16, 2019. Parliament required IPAM to make an upfront payment of $5 million as part of its 25% contribution to the $50 million contract, with the government providing the remaining 75% as a bank guarantee.

IPAM later informed the developer of a $3.5 million revolving credit secured from the United Bank for Africa (UBA). Payments totaling $4.5 million made to the developer, including a $1 million payment as part of the 25% contribution.

In concluding the briefing, Professor Aiah Lebbie, the current Vice Chancellor and Principal of IPAM, stated that the project’s status remains uncertain. He indicated that a consultation with the F&GPC would be necessary to determine the project’s future viability.

Professor Lebbie emphasized that the project’s progression depends on financial resources and upcoming engagements with stakeholders. “Our primary concern is whether the project will proceed,” he noted, adding that the final decision will be based on further discussions.

Tonya Musa announced that the matter is under investigation by the Anti- Corruption Commission (ACC), but IPAM wanted to publicly clarify their position on the issue.