In a startling revelation, the latest audit report has uncovered that a staggering Le19.4 billion (19.4 million new Leones) has seemingly vanished from the National Social Security and Insurance Trust (NASSIT). This amount was purportedly capitalised as project expenditure, but reflects a troubling lack of transparency and accountability within the institution. The significant sum is tied to preliminary costs associated with three separate projects that, despite being initiated, did not progress as planned.
According to the audit findings, these preliminary expenses were recorded as capitalised project expenditures in NASSIT’s financial statements. This classification raises serious questions, especially since the three projects have been cancelled and remain untraceable within the organization’s records. It appears that these costs, which should have been written off following the cancellation of the projects, linger in the financial statements as if they still hold value.
The auditors’ report explicitly states, “We reviewed the investment portfolio of the Trust and observed that NLe19,479,000 was incurred as preliminary expenses for three projects which were capitalised in the financial statements. However, these projects did not continue as planned.” This finding suggests not only a failure in financial management, but also a potential oversight in following proper accounting practices.
Following the discovery, the auditors recommended that the General Manager of Investment work closely with the General Manager of Finance to scrutinise the capitalised preliminary expenses and seek the necessary approvals for the immediate write-off of these costs linked to the discontinued projects. They emphasized that evidence of action taken and revised financial statements should be provided for verification purposes.
In response, NASSIT management acknowledged the auditors’ observations regarding the NLe19.4 billion and stated that approval had been secured to write-off these preliminary expenses from the financial statements. They claimed that adjustments have been made in the FY2024 Financial Statements and that relevant journal entries are available for external auditors to review. However, this assurance may not fully address the concerns raised.
Crucially, the auditors commented that there was no formal approval from the Board for the write-off of the related costs. This oversight highlights a significant governance gap, leaving the issue unresolved and raising concerns about the integrity of financial management within NASSIT.
The implications of these findings are far-reaching. As a vital institution responsible for the social security and insurance needs of citizens, NASSIT must demonstrate a commitment to transparency and accountability. Failure to address these discrepancies could undermine public trust and erode confidence in the management of critical resources.
Stakeholders and the general public alike are urged to call for immediate action to rectify these financial irregularities. It is essential for NASSIT to adopt robust measures for monitoring expenditures and ensuring compliance with proper accounting standards. Only through such initiatives can the institution safeguard its reputation and fulfill its mandate to serve the public effectively.
As the situation unfolds, the hope remains that NASSIT will take the necessary steps to resolve these issues, restore public confidence, and provide a clear path toward accountability and transparency in its financial dealings. The need for rigorous oversight has never been more pressing as Sierra Leone looks towards sustainable development and the welfare of its citizens.
