NASSIT’s Financial Integrity On The Line
In a shocking revelation, the National Social Security and Insurance Trust (NASSIT) has reported capitalizing a staggering Le19.4 billion (19.4 million new Leones) as project expenditures, which have now come under scrutiny following the 2024 audit report that questions the legitimacy of these figures. The funds in question were initially marked as preliminary expenses for three projects that ultimately did not materialize. Yet, despite their discontinuation, these costs were retained on NASSIT’s financial statements as capitalized assets.
According to the detailed audit findings, the investments linked to these projects were classified as such, even though the initiatives themselves were abandoned before fruition. The auditors stated, “We reviewed the investment portfolio of the Trust and observed that NLe19,479,000 was incurred as preliminary expenses for three projects which were capitalized in the Financial Statements. However, these projects did not continue as planned.” This raises significant concerns regarding the management of funds and accountability within NASSIT.
The audit report strongly recommended that the General Manager (GM) of Investment collaborate with the GM of Finance to review these capitalized preliminary expenses. Furthermore, it stressed that proper approvals should be sought from the relevant authorities for the immediate write-off of these costs associated with the discontinued projects. It demanded clear evidence of action taken along with revised financial statements for verification.
In response to the auditors’ observations, NASSIT management acknowledged the findings concerning the Le19.4 billion capitalized as preliminary expenses. They indicated that approval has been secured to write off these expenses from the financial statements, with adjustments implemented in the Fiscal Year 2024 documents. Management assured the availability of the necessary journal entries for external auditors to review.
However, the auditors pinpointed a critical flaw in this process: no formal approval from the Board for the write-off of the costs associated with the abandoned projects had been documented. As a result, the issue remains unresolved, casting a shadow over NASSIT’s financial integrity and raising questions about transparency and governance within the organization.
The lack of clarity regarding the identification and traceability of the three projects further exacerbates the situation. Stakeholders and members of the public will likely demand more rigorous oversight to ensure the safeguarding of NASSIT’s assets and the trust of its beneficiaries.
The controversy surrounding the Le19.4 billion continues to unfold, inviting deeper investigations into NASSIT’s financial practices and calling for an overhaul of protocols to prevent mismanagement of funds in the future. As the government reviews these developments, the implications of this oversight serve as a stark reminder of the necessity for accountability in public financial management. This case highlights the importance of robust governance frameworks to protect the interests of those who rely on social security and insurance benefits in Sierra Leone.
