The recently released Audit Service Report has revealed that millions of new leones cannot be properly accounted for in 2023 by the Ministry of Lands, Housing, and Country Planning.

This has placed the ministry under intense scrutiny, prompting questions about the consequences for ministries that fail to justify the use of taxpayers’ money.

The findings outlined in the Auditor-General’s report depict a troubling scenario of mismanagement and a lack of transparency within the ministry’s operations. One significant revelation was the ministry’s inability to maintain accurate records of lease rentals. Despite charging a standard fee of NLe2,500 for each residential lease, auditors discovered a lack of documentation to verify the number of leases issued, the total revenue collected, or the outstanding amounts owed by lessees. This absence of records raises serious doubts about the ministry’s capacity to effectively manage its financial transactions.

Further discrepancies emerged when auditors scrutinized the reported revenue from land sales. The ministry claimed NLe33,122,000 in revenue in its General Purpose Financial Statement. However, a comparison with actual bank transactions revealed inconsistencies, with the National Revenue Authority’s (NRA) cashbook showing discrepancies in the reported figures. This disparity between recorded revenues and actual bank deposits has raised concerns about the accuracy of the ministry’s financial reporting.

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In response to the audit’s findings, the ministry acknowledged the deficiencies in its record-keeping and pledged to provide the missing documentation for further verification. Additionally, the ministry committed to addressing systemic issues that had hindered proper documentation and transparency in the land management process.

During the verification process, auditors uncovered that 564 plots were leased out between January and October 2023, resulting in approximately NLe10.7 million in lease revenue. However, there was a lack of evidence indicating that these leases adhered to proper procedures, and it was apparent that rental fees were not consistently applied across the various plots. These findings underscore significant governance gaps within the system.

Of even greater concern were the discrepancies identified in the sale of freehold land. While the ministry reported NLe15 million in sales revenue, bank deposits related to these transactions reflected NLe16 million—a NLe1 million variance. Alarmingly, no valuation reports were available for the sold lands, raising suspicions of potential undervaluation and the potential for collusion among officials to defraud the state.

In addition to these financial irregularities, auditors discovered that NLe1.35 million, collected through transit banks on behalf of the ministry, had not been remitted to government accounts. This unaccounted-for sum further exacerbates concerns regarding the ministry’s financial management practices.

The audit findings have reverberated throughout Sierra Leone’s land management sector, underscoring the critical need for reform in how state land transactions are conducted. With millions of leones unaccounted for and discrepancies in lease agreements and land sales, the ministry is under immense pressure to enhance its record-keeping practices and rebuild public trust in the system.

The audit’s revelations did not conclude there. The public eagerly awaits further updates on the ministry’s efforts to rectify these issues and ensure greater accountability in the management of public funds.