Former Director General of the National Minerals Agency (NMA), Julius Daniel Mattai
The current Ministry of Mines and Mineral Resources, Julius D. Mattai, and others are to account for Le3,671,342,355.06. (Three billion, six hundred and seventy-one million, three hundred and forty-two thousand, three hundred and fifty-five Leones) generated from Precious Mineral Trading, in respect of the Mining Community Development Fund. According to Auditors, who audited the National Minerals Agency in 2021, they reviewed the documentary analysis submitted by the Mining Cadastre at headquarters and noted that a deduction of 0.75% from the 3% generated from Precious Mineral Trading, in respect of the Mining Community Development Fund amounted to Le3,671,342,355.06(Three billion, six hundred and seventy-one million, three hundred and forty-two thousand, three hundred and fifty-five Leones). From discussions with the Directorate of Precious Mineral, they were informed that the above amount was meant for mining communities. However, auditors observed that this amount was not transferred to the mining communities.
They recommended that the DG and Finance Director should ensure that the sum of Le3,671,342,355.06 is transferred to the beneficiary communities and evidence of transfer forwarded to the Audit Service Sierra Leone.
In their official response, NMA explained that the DACDF represents one-quarter of the 3% export tax levied on the value of artisanal diamonds exported from the country. The allocation of this 0.75% of total artisanal diamond export value depends on the proportion of artisanal diamond mining licenses a chiefdom has hosted out of the national total. The NMA Directorate of Precious Minerals Trading (DPMT) deposits 0.75% of the export value of artisanal diamonds to a designated NMA bank account, from where it is subsequently transferred monthly by the NMA Directorate of Finance and Administration into a (Joint) MMMR/MLGRD DACDF bank account.
The NMA has consistently made transfers to the DACDF MMMR account from January 2012 to April 2020. The NMA does not disburse funds to beneficiaries in various communities, the Ministry does to various beneficiaries. This was put on hold by the NMA Board at the 58th Board meeting as the NMA had not received any activity or monitoring reports to show how these monies have been spent or which specific community projects were undertaken for the past years. The undisbursed funds are in the NMA bank accounts and will be disbursed when the issue is resolved”.
Nevertheless, the auditors maintained that the Management’s response was well-noted. “However, our recommendation was not implemented. The issue therefore remains unresolved,” the Auditor’s report stated. More details next edition!
Credit: Annual Report on the Account of Sierra Leone 2021.
