In a recent report (Country Report No. 23/377), the International Monetary Fund (IMF) has raised alarms regarding the sluggish pace of reforms intended to bolster governance and combat corruption in Sierra Leone under the extended credit facility (ECF) program.
The IMF emphasizes that efforts to secure the operational and financial independence of the Audit Service Sierra Leone (ASSL) have shown only limited progress.
The report underscores that, despite the adoption of new tribunal guidelines by the Judicial and Legal Service Commission following the dismissal of the auditor general and her deputy, the ongoing tribunal has seen “no tangible progress over a period of more than a year and a half, with sessions repeatedly postponed,” as cautioned by IMF staff. This, they warn, could undermine public confidence in external audit functions and overall governance in the country.
Regarding the salaries and allowances owed to ASSL management, the IMF authorities note an Attorney General’s opinion suggesting that the deputy auditor general has been paid in accordance with the law. However, the tribunal on the suspended Auditor General and her Deputy persists, despite the government’s commitment to conclude it by the end of November 2023.
As of now, the State has closed its case against the two officials, awaiting the defense’s response. The hearing is scheduled for Thursday, December 7, 2023.
The government has also pledged to fulfill all legally owed salaries and allowances to ASSL management, as outlined in the Memorandum of Economic and Financial Policies (MEFP) dated November 6, 2023, supplementing the one from May 22, 2023, focused on improving governance.
The MEFP reinforces the government’s dedication to enhancing transparency, strengthening anti-corruption efforts, and ensuring the operational independence of the ASSL.
It highlights the development and publication of a roadmap reviving dormant statutory provisions on surcharges and the ongoing process of related implementing regulations.
The report sheds light on the limited progress made in strengthening the national anti-money laundering and countering the financing of terrorism (AML/CFT) framework.
Sierra Leone’s 2020 evaluation identified significant weaknesses, including making beneficial ownership of companies available, enhancing AML/CFT risk-based supervision of non-banking financial institutions, monitoring dealers of precious metals and stones, and strengthening enforcement against money laundering and financial crimes.
In response to AML/CFT concerns, the government has committed to making beneficial ownership of legal entities available and is actively engaged in enhanced risk-based supervision of non-bank financial institutions. They have approved the AML/CFT National Risk Assessment Report and were expected to publish it in November.
