Audit Report Raises Red Flags Over Delayed $1.3 Million Public Debt Management Project

A flagship of $1.3 million public sector reform project aimed at improving Sierra Leone’s public debt oversight is significantly behind schedule and has breached its own operating rules, according to the Auditor General’s 2024 Report.

The project, titled “Enhancing Efficiency in Public Debt Management,” was launched in October 2023, ten months later than planned. As of the time of the audit, only 45 percent of the project funds had been disbursed after 18 months of implementation, raising concerns about effectiveness, governance, and value for money.

In its findings, the Auditor General attributed the slow progress primarily to weak oversight and poor coordination. The report stated that the delays “could be attributed to the failure of the project steering committee to meet regularly to discuss pertinent issues regarding implementation challenges.”

The audit noted that the project’s steering committee, which is responsible for guiding implementation and resolving bottlenecks, did not meet as required, limiting its ability to address emerging problems and keep activities on track.

The report also highlighted non-compliance with the project’s own financial management rules. Auditors found that the project team used basic Microsoft Excel spreadsheets to track financial transactions instead of the TOMPRO financial management software, which is explicitly required under the project’s operations manual.

According to the Auditor General’s report, the project team acknowledged the deviation and defended its decision by arguing that the project was of a “relatively small size… limited transactions, and short duration.” The team further indicated that it planned to consult the funding bank on the possible adoption of TOMPRO at a later stage.

However, the auditors rejected this justification, stressing that compliance with agreed systems is mandatory regardless of project size. The report concluded: “Until the software is fully implemented and supporting evidence submitted, this issue therefore remains unresolved.”

The Auditor General warned that continued reliance on manual or basic systems undermines transparency, accountability, and effective financial control, particularly in a project designed to strengthen public debt management.

To address the shortcomings, the 2024 Audit Report recommended immediate corrective action. It urged the Project Coordinator to ensure that the project steering committee meets at least every six months to address implementation challenges and provide strategic direction. The report also called for the immediate implementation of the TOMPRO software to align financial reporting with project rules and donor requirements.

The Auditor General emphasized that without these actions, the project risks failing to achieve its core objective of improving efficiency and oversight in Sierra Leone’s public debt management framework, despite the significant public and donor funds committed to it.