The ACC, in its fourth media release to update the general public of the actions and steps it has taken to address critical issues raised in the Audit Reports of Sierra Leone 2015-2018, has cleared the University of Sierra Leone (USL) of corruption allegations in the 2018 Auditor General’s Report.
The 2018 Report alleged that the University did not provide supporting documents for transactions amounting to Twenty-Four Billion, Six Hundred Million, One Hundred and Fifty-Three Thousand, One Hundred and Forty-Four Leones (Le 24,600,153,144).
The USL comprises, Fourah Bay College (FBC), the Institute of Public Administration and Management (IPAM), College of Medicine and Allied Health Sciences (COMAHS) and a Secretariat.
The ACC investigations established that the issues contained in the 2018 Audit Report on USL were carried over and were exactly the same as those in the 2016 Audit Report, and that the USL had in fact resolved the issues in 2017.
The aforementioned colleges generate their incomes and incur their costs. The incomes generated from the colleges are used to cover their individual expenses and the payment of junior and support staff. As a consequence of delays in receiving subventions from the Government of Sierra Leone, or due to the fact that such subventions are normally insufficient to cover all the salaries, leave allowances, and other costs, or the subvention is received late, the constituent colleges give loans to the USL Secretariat to deal with the aforementioned issues. Loans received from the colleges are determined by USL’s Management based on the constituent colleges’ liquidity level. In 2016, the loan obligation of the USL Secretariat to IPAM and FBC was Six Billion Leones (Le6bn).
Firstly, in order to determine the issue, the ACC investigations zoomed in on ex gratia payments ( the end of service benefit normally paid to staff when they resign or die); Contract gratuities; Leave allowance; Imprest; Funds transfer; Admissions; and Investment Certificates. The USL spent Five Billion, Five Hundred and Fifty-Eight Million, One Hundred and Seventeen Thousand, Two Hundred and Ninety-Two Leones, Seventeen Cents (Le5,558,117,292.17) on ex gratia payments. The investigations established that all the people that received this benefit were indeed deserving persons. The ACC verified that the calculations were correct in accordance with the University’s Terms and Conditions of Service, and that the tax associated with these payments were correctly deducted and paid to the National Revenue Authority.
Secondly, the USL spent the sum of One Billion, Thirty-Nine Million, Fifty-Four Thousand, Two Hundred and Seventy Leones, Sixty-Nine Cents (Le1,039,054,270.69) on Contract Gratuities. Contract Gratuity is benefit annually paid to staff who are on contract with the University. Most of these staff are retired employees of the University who are given contracts because of their expertise. Our investigations verified the calculations to be correct in accordance with the University’s Terms and Conditions of Service. This benefit did not attract tax because it was always below the Fifty Million Leones (Le50,000,000) threshold.
The ACC also investigated the payment of leave allowances and found that the USL spent a total sum of, Nine Billion, Six Hundred and Sixty-One Million, Sixty-Five Thousand, Six Hundred and Seventy-Eight Leones, Seventy-Three Cents (Le9,661,065,678.73) on same. Leave allowance is calculated at 30% of annual basic salary for all staff of the University as stipulated in the Terms and Conditions of Service of the University. Our investigations established that leave allowances paid in 2016 were accurately calculated and accordingly paid to staff.
Accordin g to the statement from the ACC, on Imprest, the USL doled out a total amount of One Hundred and Eighty-Eight Million, One Hundred and Fifty-Eight Thousand, Twenty-Five Leones (Le188,158,025.00) to members of staff that were so authorized. Imprest is normally given to staff for activities which their expected cost cannot be determined in advance. According to the ACC, investigations confirmed that imprest granted to the executing unit/department/staff were properly and accurately retired. “The investigations proved that, an amount of Fourteen Million, Eight Hundred and Six Thousand Leones (Le14,806,000) was issued out as imprest in 2016 for various activities. This was duly authorised and supported with the necessary documents, and that a retirement of Three Million, Seven Hundred and Eighteen Thousand, Eight Hundred Leones (Le3,718,800) was made as at the year-end 2016. The remaining imprest balance of Eleven Million, Eighty-Seven Thousand, Two Hundred Leones (Le11,087,200) is still in the hands of the officers in charge.”
Fifth, on Funds transfers for the period under review, USL transferred a total sum of Four Hundred and Ninety-Nine Million, Four Hundred and Forty-Nine Thousand, Nine Hundred and Sixty Leones (Le499,449,960.00) to various Accounts comprising loans normally obtained from sources within the USL. The ACC says it established that the movement of funds in the various Bank Accounts were verified to be true and correct.
Sixth, on admissions, the USL spent One Hundred and Sixty-One Million, One Hundred and Thirty-Seven Thousand, Seven Hundred Leones (Le161,137,700.00) on notices, printing, submission and collection of submitted application forms, including honorarium for admission process. The ACC investigations unearthed that some of the amounts in the payment vouchers for admission expenses exceeded the total in the financial statement because payments made to suppliers are combined for different purposes. The different cost centres are referenced in the payment vouchers. The ACC examined the original supporting documents such as payment vouchers, receipts, minutes, etc, and they were independently verified and analysed. The evidence supported the tally; with the sum of One Hundred and Eighty-Eight Million, One Hundred and Fifty-Eight Thousand, Twenty-Five Leones (Le188,158,025.00) in the University’s financial statement.
Seventh, with respect to investment certificate, the evidence showed that the Secretariat of the USL had over the years invested up to Fifty-Six Million, Six Hundred and Fifty Thousand Leones (Le56,650,000) in Treasury Bonds at the Sierra Leone Commercial Bank. The investigations established that the investment had been rolled over until in 2017, when the Secretariat disinvested the fund and used them for operational activities.
In terms of monies returned to the State, the release stated that the Commission has recovered a total sum of Two Billion, Seven Hundred And Forty-Two Million, One Hundred And Eighty-Five Thousand, Three Hundred and Four Leones, and Sixty-One Cents (Le2, 742, 185, 304. 61). The ACC has charged two (2) matters to Court. Furthermore, there are thirteen (13) ongoing active investigations. Two (2) matters have been accordingly closed for lack of evidence.
By Hasbin Shaw
12/10/2020. ISSUE NO: 7928