An audit report by the Audit Service Sierra Leone (ASSL) has exposed serious financial and administrative irregularities at the Ministry of Lands, Housing and Country Planning, involving NLe5,671,032.24 in unbanked revenue, unaccounted lease payments, missing permit records, and questionable payroll practices.

According to the 2024 Audit Report on the Ministry’s headquarters operations, revenue totalling NLe3,541,598 collected from land sales, land surveys and land regularisation was not paid into the Ministry’s designated Transit Account at the Sierra Leone Commercial Bank.

The auditors further found that an additional NLe496,035 was not transferred from the Transit Account to the Treasury Single Account at the Bank of Sierra Leone, as required by public financial management regulations.

The Audit Service stated that there was no evidence of reconciliation between the Ministry and the National Revenue Authority (NRA) to resolve the discrepancies. The auditors recommended that the Principal Accountant liaise with the NRA to ensure that the full NLe3,541,598 is transferred into the Consolidated Fund and that proof of the transfer of NLe496,035 to the Treasury Single Account be submitted for verification.

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In its official response, management of the Ministry said it acknowledged the findings but claimed that, based on its records, figures generated from the SMART KORPOR Land Management Information System reconciled with the Ministry’s vouchers and NRA records. Management also stated that it had no control over transfers from the Transit Account to the Treasury Single Account and that reconciliation documents were available for inspection.

However, in its concluding comments, the Audit Service Sierra Leone said that during verification, no evidence was provided to confirm that the NLe3,541,598 was ever deposited into the Transit Account. The auditors also said they were yet to receive confirmation that the NLe496,035 had been transferred to the Treasury Single Account, leaving both matters unresolved.

The audit further revealed that revenue from state leased land and building permits was not properly accounted for. The Ministry reportedly allocated state lease land to 108 private individuals and organisations, with annual lease rents ranging between NLe2,500 and NLe500,000. Based on lease offer letters reviewed, the auditors calculated that NLe814,000 should have been collected in the 2024 financial year. There was no evidence that the amount was paid, nor any record of penalties imposed on defaulters.

In addition, receipts amounting to NLe45,075 issued for building permits during the same period could not be traced in the SMART KORPOR revenue database submitted for audit.

Management responded by stating that evidence of payments and an updated revenue database were available for review. The auditors, however, said no such evidence was presented. As a result, the Audit Service concluded that there was no proof of lease rent payments, no updated revenue database, and no penalties imposed, and the issue remains unresolved.

The audit also raised concerns over payroll management after 17 staff members were not available for physical verification. The total annual gross salary paid to these individuals amounted to NLe774,324.24, raising the risk that government funds may have been paid to non-existent or ineligible persons.

The auditors recommended that the Acting Director of Human Resources make the 17 staff available for verification or remove their names from the payroll. In response, management claimed that only one of the 17 was an actual staff member of the Ministry, while 10 were non-staff, one had been transferred to the Ministry of Water Resources, four were deceased, and one was retired.

The Audit Service Sierra Leone said no supporting documents were submitted to confirm the transfer, deaths, or retirement. The auditors also noted the absence of correspondence with the Human Resource Management Office to remove the 10 non-staff individuals from the payroll. Consequently, the auditors concluded that this issue also remains unresolved.

The findings are contained in the official 2024 Audit Report of the Audit Service Sierra Leone, which is mandated by law to examine and report on the use of public funds by government institutions.