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The 2023 Auditor General’s Report has unveiled significant financial and administrative lapses in eight Local Councils across Sierra Leone, with a failure to remit statutory contributions and taxes emerging as a key concern.
According to the report, these councils did not pay NASSIT contributions totaling NLe1,173,346.30 for their staff, in violation of Section 25 of the NASSIT Act of 2001, which mandates the payment of withheld contributions within 15 days of the month’s end.
The report warned that noncompliance with this provision heightens the risk of penalties for these councils.
Additionally, four Local Councils failed to withhold and remit Pay-As-You-Earn (PAYE) taxes amounting to NLe683,002.66, contrary to Section 116 of the Consolidated Income Tax Act of 2008. This lapse reflects poorly on the councils’ compliance with tax regulations.
Beyond financial irregularities, the report also highlighted systemic weaknesses in governance and internal control mechanisms.
It noted that many councils lacked a risk management and fraud policy, while their internal audit units were understaffed and poorly structured. In some cases, internal auditors reported directly to Chief Administrators rather than Audit Committees, undermining accountability and transparency.
The report called for urgent reforms, recommending that Local Councils implement robust governance frameworks, adopt best practices in internal auditing, and address staffing challenges to improve service delivery and accountability.
