The Anti-Corruption Commission (ACC) investigations established that the National Petroleum (NP) was overpaid Le4.1 billion (Le4,102,000,000) as the quantity fuel supplied was less than what was paid. NP has debunked allegation contained in the press release issued by the ACC Commissioner Francis Ben Kaifala titled “UPDATE ON ACC’s ACTIONS WITH AUDIT REPORTS (No.1)” and dated 31st August, 2020, that the company was overpaid and challenged them to provide supporting documents to substantiate that claim.
This was said by the NP-SL Ltd. Chief Executive Officer Kobi Walker on Wednesday September 2nd, 2020. A staff of the Commission who was a guest on a local radio program on SLBC apologised to the company that the amount stated was not correct and that it should have read Le4.1 million. Even with the above stated amount, CEO Walker stressed that product deliveries are made by third party transporters who are under contract with the company and that their books do not show records of such transaction and that the deficit can be better explained by them.
The Commission’s release stated that their investigation emanated from the audit query which stated that the Electricity Distribution and Supply Authority (EDSA) made payments of Le30 billion (Le29,902,459,635.00) to certain institutions without contractual agreement. ACC’s findings indicated that quantity supplied was less than what was paid and that since the Finance Departments of EDSA, and NP failed to take the necessary actions, the ACC has directed NP to pay back to the State the aforementioned amount into the EDSA Account. “EDSA and NP are working on getting the recoveries done.”
NP’s reaction to the said assertion was that the company’s Finance Department has never engaged or exchanged correspondence with the ACC on this issue. “Even the Le4.1 million they claim that we short delivered is not in our books.” Primarily, the audit query was for “Unjustified Payments to Third Parties – 29,902,459,635.00” according to the Report on the Technical Audit of the Social Security, Telecommunications, Civil Works and Energy Sectors-2019.
The Audit Service Sierra Leone (ASSL) report observed that contrary to Regulations 74 of the Financial Management Regulations, 2007 and Sections 63 and 64 of the Public Financial Management Act, 2016, they noted that EDSA paid a total amount of Le 29,902,459,635.00 from August to September 2018 based on directives from the Ministry of Finance and Accountant General without any contractual obligation or justification. The said payments without contractual obligations were paid to the National Revenue Authority (NRA) –(August-November 2018 –Le6,175,303,498.00), NP (August-October 2018 –Le5,195,000,000.00), Salini (August 2018–Le18,093,535,142.00) and D&S Associate (September –Le438,620,995.00)
“Inappropriate directives and bad management practices accounted for this anomaly” the auditors said. They went further to note that they could not establish the authenticity of the payments made to these institutions. “This situation is not only exposed to abuse but also could result in diversion of funds for unauthorised purposes.” At the time of the audit, the EDSA Management noted the observation and stated that they have communicated same to the Ministry of Finance.
It was the audit recommendation that in the absence of any contract documents to justify the payments made, the authorising and paying officers should recover the amount of Le29,902,459,635.00 without any delay. In reaction to above query, CEO Walker said the ACC investigations did not address this query but reported on an investigation into the energy sector authorised by the Ministry of Finance.
He recalled that the company received a copy of a letter that was addressed to the Minister of Finance on 6th December, 2019 and which was written by the ACC’s Director, Intelligence and Investigation Department which stated that NP short supplied EDSA 586 litres of petroleum product amounting to Le4.1 million. CEO Walker added that when charged with responsibility by the Minister to investigate the energy sector the only thing they could come up with was that NP were supposed to supply 17,000 litres but they short delivered and supplied an amount which is equivalent to Le4.1million, which the company doesn’t have record of.
He assured the government of the company’s support as they have always owned up to their tax obligations and supported the national causes that will improve the livelihood of citizens. “We are a reputable corporate entity that conducts its business with the highest standards of integrity and moral rectitude. The release issued by the ACC constitutes a grave reputational risk to our hard-earned image and this can be quite damaging,” he said.
By Zainab Iyamide Joaque