2017 Audit Report on the account of the government of Sierra Leone revealed that Le5,322,155,099 mining royalties have been missing in the mining treasury account.
“Section 42 of the FMR 2007 and best practice require a formalised routine for the collection and banking of revenues including royalties,” the Audit Report indicated.
That this will enhance the recognition and complete recording of revenues collected in order to mitigate possible loss and that the Audit team examined 28 royalty receipts issued by the NRA in 2016 based on bank confirmation (credit advice).
“However, two payments in the bank statements of the Mineral Resources Treasury Account (USD291,737 approximately Le 1, 700,140,949 and USD 507,292 approximately Le 3,622,014,150 for SMHL and the Sierra Rutile (SL) Ltd. respectively were not traced in their respective accounts,” the report revealed.
The Auditor recommended that the Commissioner General of NRA in collaboration with the NMA should investigate these discrepancies and ensure that those amounts are posted into the designated account.
But the The Director General (DG) of NMA responded, “The Agency has an effective system of collaboration with the NRA in place. Our records do not show any attempts by the NRA to follow up on the two missing items at the time of payment. Moreover, the NMA has not yet received any query from NRA to support them in their endeavour to investigate the two missing payments. But we would like to note that the Agency is ready to support our colleagues at the NRA immediately once our help is requested.”
The auditor responded that their recommendation was not implemented, despite an investigation was carried out by the NRA, the amounts were not posted into the designated account, therefore the issue remains unresolved.
Detail on this in subsequent editions.