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The Public Accounts Committee (PAC) has uncovered significant financial irregularities involving NetPage Ltd., the private firm contracted to produce and market e-passports.
According to the 2023 Auditor General’s Report, NetPage failed to remit $744.9 million in royalty payments due to the state, sparking serious concerns about accountability and lost public revenue.
The PAC hearing, chaired by Hon. Ibrahim Tawa Conteh, brought together representatives from Audit Service Sierra Leone (ASSL), NetPage, and Members of Parliament in a tense exchange over the company’s non-compliance.
The audit report revealed that the government is entitled to 9% of all e-passport sales, yet no royalty was received for the 82,777 passports issued in 2023. Alarmingly, auditors noted this was not an isolated incident, but rather a continuation of concerns raised in the 2022 audit report.
“The government did not receive the expected royalty payment of $744,993,000 in 2023,” an ASSL official told the committee. “Despite repeated follow-ups, as of December 31, 2023, NetPage had not provided any proof of payment into the Consolidated Revenue Fund. The issue remains unresolved.”
In its defense, a NetPage representative admitted the company had not made the payments, attributing the lapse to “external financial challenges” such asthe COVID-19 pandemic and foreign exchange losses.
The representative disclosed that NetPage had written to the Ministry of Internal Affairs, requesting permission to offset previously paid royalties amounting to over Le 5.2 billion against outstanding tax liabilities with the National Revenue Authority (NRA). He further claimed that the royalty payments were not part of the original contract ratified by Parliament, but instead stemmed from a “gentleman’s agreement” reached with the Ministry of Finance in August 2021.
“We are currently operating at a loss,” the representative said. “Paying these royalties along with our tax obligations could bankrupt us and jeopardize our international partnership with HID Delarue UK.”
Further scrutiny revealed additional liabilities, including $223,000 in unpaid taxes such as PAYE and corporate tax for the last quarter of 2022. The company pledged to consult with its tax advisors and reconcile accounts with the NRA.
Hon. Ibrahim Tawa Conteh voiced frustration over NetPage’s inconsistent responsiveness to government bodies. ‘”You responded to the ministry in one day, but when Parliament calls for documents, it takes you forever,” he said. “This must change.”
The session ended with a recommendation for more inclusive audit procedures, allowing direct engagement with contractors like NetPage instead of relying solely on government ministries to provide documentation.
The PAC is now awaiting additional documentation from NetPage, including reconciliation reports with the NRA and formal proof of any payments made. Until then, the Auditor General maintains that the financial irregularity stands unresolved.
This case underscores ongoing concerns about transparency and oversight in public-private partnerships especially those involving essential national service like passport issuance.
