The 2023 Audit Report has uncovered significant breaches in government protocols and financial management, raising concerns over the legality and enforcement of critical agreements.

The report, presented to Parliament on Tuesday, December 17, 2024, by Deputy Speaker and Chairman of the Public Accounts Committee, Hon. Ibrahim Conteh, highlights irregularities in contracts involving millions of dollars.

The report reveals that the Minister of Mines, instead of the Minister of Finance, signed a lease agreement between the Ministry of Mines and the Kingho Railway and Port Company Limited. This action contravenes the Public Financial Management Act, 2016. Additionally, the lease agreement was not ratified by Parliament, casting doubts on its legal standing.

One of the most concerning findings relates to tax exemptions worth $5,275,434, which were granted through the agreement. The absence of parliamentary ratification and the improper ministerial signature raise questions about the enforceability of these exemptions.

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The audit further scrutinized contracts between the Government of Sierra Leone and two companies—HID CID Ltd. and Zoodlabs (SL) Ltd.—highlighting non-compliance with contractual clauses that led to revenue losses.

HID CID Ltd.: The company was obligated to pay the government a 9% royalty on the sale of e-passports. However, a total of $744,993 in royalties for e-passports produced in 2023 remains unpaid.

Zoodlabs (SL) Ltd.: The firm, responsible for managing the ACE submarine cable, owes the government $1,440,000 in annual fixed fees for operations, maintenance, and commercial management.

The report underscores the urgency of addressing these breaches to protect the country’s revenue base. “Non-compliance with these agreements has resulted in significant losses to the government, undermining public financial management,” the auditors stated.

Parliamentarians and civil society organizations have called for immediate action to recover outstanding payments and ensure stricter adherence to legal and financial protocols in government agreements.

The findings are expected to fuel debates in Parliament as lawmakers push for accountability and transparency in the handling of public funds.