Breach Of Hire Purchase Agreements… NASSIT Fails To Recover Le1.2 Billion
By Aruna Momoh Kargbo
Just like other bad deals entered into between the National Social Security and Insurance Trust (NASSIT) with other institutions, the Trust failed to recover the sum of NLe1,208,547.00 which is equivalent to the sum of Le1,208,547,000 in old Leones for the sale of the M V Bai Bureh Ferry.
This was captured by the protector of the Sierra Leone public purse, Audit Service Sierra Leone (ASSL) in their recently published report, noting that Ministry of Transport and Aviation did not comply with the clause in the Hire Purchase Agreements.
The report maintained that in May 2019, the Trust entered into a hire purchase agreement with the Ministry of Transport and Aviation (MTA) for the sale of the M V Bai Bureh Ferry.
“According to Clause 4 of the Agreement, the MTA should make a quarterly payment of NLe75,000 for a period of four years, ending May 2023. As at the time of compiling this report, the Ministry had not complied with its obligations,” the Audit stated.
That the Management of the Trust did not provide any evidence of actions taken to recover the said amount, adding that the total amount outstanding in the Financial Statements of the Trust in respect of the said agreement was NLe1,208,547.00.
The report recommended that the Director General of NASSIT, Mohamed Fuaad Daboh should contact the MTA to demand the overdue payments and establish a clear timeline for the payment.
That he should also ensure that recovery strategies are designed through the legal team of the Trust for the immediate recovery of the money and that evidence of action taken should be submitted to the ASSL.
In their response, the Trust stated that they are engaged in discussions with the Ministry to recover the overdue amount.
“Management’s comments are noted. However, no evidence was provided in the form of minutes or correspondence to suggest that the Ministry of Transport and Aviation has been engaged by the Trust on this issue. Therefore, the issue remains unresolved,” the Audit stated.
