National Minerals Agency, Director General, Ing. Hadji DaboAudits conducted by the Audit Service Sierra Leone uncovered alarming disparities at the National Minerals Agency (NMA), revealing that a staggering one billion, seven hundred and fifty-three million, two hundred and eighteen thousand Old Leones—designated for the mining development fund intended for various beneficiary communities has reportedly been mismanaged.
The audit findings show that these funds were never disbursed to the communities, causing significant delays and interruptions in the implementation of planned development projects. The auditors have urged the NMA’s Director of Finance and Administration to promptly transfer the misallocated NLe1.7 billion to the Mining Development Fund.
This transfer is critical to meeting the agency’s obligations and promoting the development of the affected communities. Furthermore, the auditors have directed that evidence of remittance be submitted to the Audit Service Sierra Leone to ensure accountability. In response to these findings, NMA officials explained the allocation of the Development and Community Development Fund (DACDF). They clarified that the DACDF represents one-quarter of the 3% export tax levied on the value of artisanal diamonds exported from Sierra Leone. The allocation of 0.75% of the total artisanal diamond export value is determined by the proportion of artisanal diamond mining licenses held by each chiefdom in comparison to the national total.
The NMA’s Directorate of Precious Minerals Trading (DPMT) is in charge of depositing this amount into a designated NMA bank account, from which funds are transferred monthly to a joint DACDF bank account managed by the Ministries of Mines and Mineral Resources (MMMR) and Local Government and Rural Development (MLGRD). However, at the 58th Board meeting, the NMA Board suspended these transfers due to what they labelled “a lack of activity or monitoring reports detailing how the funds were used or which specific community projects had been undertaken in previous years”.
Despite NMA claims that the Ministry later approved payments to various beneficiaries, auditors discovered that no proof of payments or transfers for the 2023 community development fund was made available for verification. This situation raises serious concerns about the NMA’s financial governance and transparency, as a lack of accountability may stifle the development of communities that rely on these funds for critical projects. More details next edition!
