By sulaiman.sesay@awokonewspaper.sl
Freetown, SIERRA LEONE – In a recent statement, Acting Auditor General of Audit Service Sierra Leone (ASSL), Aiah Gbondo-Tugbawa, emphasized the inherent ownership of a country’s natural resources by its citizens, including oil, gas, metals, and minerals. He asserted that the extraction of these resources holds the potential for economic growth and social development but highlighted the risks associated with poor governance, such as corruption and conflict.
Tugbawa urged the necessity for increased transparency and public scrutiny in the utilization and management of wealth generated from a country’s extractive industry. He noted that Supreme Audit Institutions have been actively engaged in research and audits related to the extractive industry to ensure the equitable distribution of benefits from natural resources.
The Acting Auditor General mentioned that ASSL has conducted several audits over the years, addressing areas such as mining surface rent, mining royalties, issuance of exploitation mining licenses, and mines closure. Recognizing the global significance of the mining sector for economic development, he shared insights into ongoing efforts to make the sector more attractive to investors.
Citing a report from the African Development Bank in 2015, Tugbawa highlighted that minerals account for 70% of African exports and nearly 30% of GDP. He emphasized the substantial contribution of extractive industry revenues, reaching up to 70% of total revenues for some major oil and gas producers.
Speaking at the AFROSAI-E: Audit Service Sierra Leone (AASL) Extractive Industry meeting at Radisson Blu Hotel in Aberdeen on March 4, 2024, Tugbawa described the extractive industry as encompassing non-renewable resource extraction, including operations that extract oil, gas, minerals, and aggregate from the sea.
Tugbawa asserted that increased attention on auditing extractive industries is crucial. Supreme Audit Institutions, like the Audit Service Sierra Leone, can play a pivotal role in ensuring transparent oversight of the extractive industry, thereby safeguarding the government’s management of natural resources in the public’s best interest.
Esther Thomas, Team Lead of AFROSAI-E, who travelled from South Africa, highlighted the technical assistance provided to auditors. Out of the 26 member countries, 17 possess natural resources, and efforts are directed toward capacity building due to the vast potential these countries hold. Thomas expressed optimism about developing an updated risk register and identifying relevant topics through the meeting, ultimately contributing to impactful audits that benefit the citizens of Sierra Leone. SKS/5/3/2024