Dilapidated Kimbima HotelThe National Social Security and Insurance Trust (NASSIT), the statutory body responsible for managing Sierra Leone’s National Pension Scheme, has come under fire for the mismanagement of pensioners’ funds amounting to a staggering One Hundred and Sixty-Five Billion Old Leones (NLe165,093,760.58). A recent audit revealed that this large sum was invested in subsidiaries that no longer exist or have ceased operations entirely.
The auditors’ investigation identified three companies associated with NASSIT that contributed to this financial disaster. These companies were discovered to have either closed or gone out of business by December 31, 2023, putting pensioners’ money in jeopardy. Following these findings, the auditors have urged the NASSIT Director General to take immediate action by divesting from these non-operational subsidiaries and ensuring that the investments are properly written off in the organization’s financial records. Furthermore, they mandated that evidence of these corrective actions be submitted to the Audit Service Sierra Leone. In response to the auditors’ concerns, NASSIT officials provided explanations regarding the status of the implicated companies. They stated that the Kimbima Hotel, which was a significant investment, ceased operations on February 22, 2022, due to serious structural integrity issues.
NASSIT management reportedly commissioned a firm to conduct a thorough assessment of the hotel’s condition, leading to a report that has since been submitted for review. The officials also mentioned that Kimbima Hotel is categorized among “toxic loans and debentures” that are slated for write-off. Similarly, the Sierra Akker Agricultural Company was reported to have ceased operations in 2020, with no updates provided since then despite ongoing requests from NASSIT for information. This company, too, is included in the list of toxic financial write-offs.
Lastly, the Sisimi project was still in its formative stages when it was investigated, and those found responsible for its mismanagement have since paid fines to the Consolidated Fund.
Despite these explanations, auditors confirmed that NASSIT continues to list these investments in its financial statements at their original book values, without any evidence of write-offs or impairment provisions. This raises significant concerns about the financial stewardship of pensioners’ funds and the accountability of NASSIT in safeguarding these vital resources. The situation calls for urgent reform to ensure that pensioners’ money is managed effectively and transparently, safeguarding their future financial security. More details in the next editions!
