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The Institute of Governance Reform (IGR) recently launched a compelling video documentary titled “Tragedies of Politics,” with the inaugural episode spotlighting “The Death & Debt of State Enterprises and Parastatals.” The focus is on the concerning trend of state-owned enterprises (SOEs) and parastatals accumulating debt and relying on Sierra Leonean taxpayers for financial sustenance.
In this first volume of the documentary series, IGR delves into the repercussions of two decades of detrimental political decisions on the functioning of SOEs and parastatals. The narrative underscores the pressing need for an examination of privatization laws as the Government of Sierra Leone (GoSL) initiates a review.
The documentary offers a firsthand look into the state of SOEs and parastatals, aiming to intensify discussions on enhancing their efficiency.
An excerpt from the documentary emphasizes the prevailing belief in Sierra Leone that external aid is the panacea for the country’s poverty, resulting in a lack of focus on building capable domestic institutions to manage the economy and societal welfare.
IGR poses critical questions in the documentary: What are these state-owned enterprises and parastatals doing with the significant funds they receive meant for the welfare of Sierra Leoneans? It prompts introspection on why these entities fail to generate wealth, jobs, and essential services for the populace.
The video advocates for a shift in focus from relying solely on international funding for basic necessities like education and healthcare. It urges a thorough examination of why these entities falter in their primary objectives and seeks strategies to rectify this systemic failure.
With the government currently reassessing laws governing state-owned enterprises, the documentary engages deeply in this ongoing discourse. It scrutinizes specific cases, such as the Road Transport Corporation’s failure to replenish its fleet despite years of receiving substantial resources, and the concerning mismanagement evident in entities like the Relon State Lottery.
The narrative highlights instances where millions of Leone are spent on transport fares daily, yet key public service providers fail to deliver on their mandates or effectively utilize their resources.
The IGR’s documentary aims to spur critical discussions on enhancing the efficacy of state-owned enterprises, ultimately advocating for transparency, efficiency, and accountable governance within these vital institutions for the welfare and progress of Sierra Leoneans.
Watch Documentary below:
Reasons why public sector enterprises fail in Sierra Leone include non-compliances with statutory and mandatory guidelines e.g. Standing Orders, no tested and proven empirical formulae for ascertaining efficacy, efficiency, and effectiveness of units/cost centres, poor and low transparent accountability, rampant fraud with misappropriation of public funds by upper echelon staff – elected + appointed, disrespect of audit functions – particularly proactive types, abuses of office, etc.