Audit Report Exposes Dubious Deals At Education Ministry


January 18, 2019

By Patrick Jaiah Kamara

The 2017 Audit report on public institutions in Sierra Leone has exposed dubious deals undertaken by the Ministry of Education, Science and Technology (MEST) for the period under review.

According to the report, overpayment of college fees subsidy, non-compliance on withholding taxes, overpayments to consultants and a certain contractor, bank withdrawals without supporting documents, and inadequate control over personnel management, among others, were observed during the course of the audit.

The report revealed that in October 2016, a Memorandum of Agreement between the Government of Sierra Leone and the Limkokwing University of Creative Technology for the payments of fees for 1,200 sponsored students was not submitted for audit inspection.

It notes that the ministry received invoice for fees of Le9,877,400,000 dated 27th October 2016, for the 1st cohort of 1,200 government sponsored students  (600 students) studying at the university for the first academic year (2016/2017), but that government paid Le10billion which resulted in an overpayment of Le122,600,000.

“From the review of the ministry’s payment analysis for the balance 50 percent payments done by the former Acting Principal Accountant, it was observed that the ministry paid Le12,180,110,420 to the university resulting in an overpayment of Le2,632,139,660 (Le12,180,110,420 – Le9,547,970,760),” the report states.

The report recommended that the Ministry of Higher and Technical Education informs the Limkokwing University of that overpayment and take necessary steps to get it refunded, and that evidence of steps taken to get it funded by the University should be submitted for audit inspection.

Also, the report indicates that payment vouchers confirmed that withholding taxes amounting to Le84, 004,791 were not deducted and paid over to the National Revenue Authority (NRA), as required by law.

These taxes relate to activities implemented by various staff in different directorates, programmes and units of the ministry, which were primarily funded by government and donor partners. This was due to non-involvement of staff of the Account Unit at the Ministry.

The report says 10.5% tax, which was supposed to be deducted from payments of non-resident contractors was not made, and further observed that the ministry when making payment to SOGEFEL SARL, a non-resident contractor, deducted only 5% withholding tax, hence, withholding tax of Le346, 253,738 was not deducted from payment to that contractor and paid over to NRA.

The report urged the concerned personnel that failed to deduct the tax to immediately recover and pay the said withholding tax to the NRA and submit the evidence.

Similar overpayment was made to consultants and a contractor for rehabilitation and extension works at Fourah Bay College, totaling Le72,588,682, due to be used by  the Bank of Sierra Leone’s (BSL) United States Dollars (USD) selling rate rather than the BSL mid-rate.

The report recommended that the acting Principal Accountant in consultation with the Permanent Secretary should inform the contractor and the consultants of the overpayments and obtain refund.

Meanwhile, the report notes that a total amount of Le3,190,815,029 withdrawn  from the Ministry’s imprest account held at the BSL were not supported by payment vouchers and relevant supporting documents such as invoices, signed list of recipients, receipts.

It called on the concerned personnel of the respective directorates and programmes to ensure that the relevant supporting documents are submitted for audit inspection; otherwise, the full amount should be refunded into the Consolidate Revenue Fund.

Another thorny issue observed by the audit report in the ministry has to do with ghost workers. The report says nine staff, who were retired and to whom retirement letters were issued, were still on the Ministry’s payroll vouchers for the period under review, with a total salary of Le84, 678,976 paid to them.

In the same vein, the report says 11 staff that have attained the statutory retirement age of 60 years were not served with letters of retirement and that their names continue to appear on the Ministry’s payroll voucher and they receiving  salaries amounting to Le193, 003,944 for the period under review.