Audit Service Sierra Leone (ASSL) has revealed a startling tale in its 2023 report on how the National Social Security and Insurance Trust (NASSIT) has invested billions of tax payers money “in Non-existing Subsidiaries”; in other words ghost companies.
The Report states that: “upon review of the operations of the subsidiary companies of the Trust, we observed that three of the companies with a cumulative exposure amounting to NLe165,093,760.58 had either ceased operations, or not in existence as at 31st December, 2023.”
The Report outlines Kimbima Hotel which it said “ceased operations on 22nd February 2022, due to structural integrity defects of the hotel;” Sierra Akker Agricultural Company ceased operations in 2020 and the Sisimi project which it said was “in its formation stage when an investigation was carried out, and those found culpable had paid the fines into the Consolidated Fund.”
The Report recommends for the General Manager to “disinvest [in] these subsidiaries and ensure that the investments are written-off in the books of account.”
Audit Service also accuses NASSIT of nonpayment of loans of its principal and accrued Interest on debenture. Auditors revealed that during the time under review, they “observed that corporate debenture loans issued by the Trust to various related companies (joint ventures and subsidiaries) amounted to NLe140,929,375” were not paid and that “there was however no documentation available to confirm the cumulative annual interest payments, which amounted to NLe161,869,135.96 as at 31st December, 2023.”
The Report adds that: “no evidence was provided to verify the repayment of the principal amounts, despite the fact that the loan tenures had elapsed.”