By Allieu Sahid Tunkara
As Sierra Leone settles down to implement its 3.4 trillion budget for the 2015 fiscal year, the Director of Budget in the Ministry of Finance, Economic Planning and Development says the government is contemplating cutting down on unnecessary expenditures as an integral part of its post-Ebola recovery strategy.
Matthew Dingie made this revelation as the Budget Advocacy Network (BAN) launched a report indicting the government on its spending in the face of the ongoing Ebola epidemic.
The report titled: ‘Fiscal Challenges in the face of the Ebola Epidemic in Sierra Leone’, found the government wanting for failing to spend wisely, blaming the situation on a legacy of misplaced priorities in the annual budget. Mr Dingie admitted a 5 percent wastage in the current budget which he said runs into billions of leones. This wasted money, he said, was allocated to public institutions including parliament and the Auditor-General’s Department which do not generate revenue for themselves.
BAN is a budget monitoring civil society organization made up of both local and international NGOs, including Action Aid International Sierra Leone, Christian Aid, Campaign for Good Governance, and Network Movement for Justice and Development.
In a power point presentation, Dr Samuel Jibao, senior researcher and lecturer at the African Tax Institute, University of Pretoria in South Africa, explained that the research that led to the report started when the Ebola epidemic struck the country in May. Prior to the research, he said, they embarked on revenue profiling to see the revenue situation in the country, paying more attention to the expenditure side of government.
“In the course of the research, we discovered that the revenue situation in the country protects high income earners whilst the low income earners suffer,” he stated.
The report also indicates that a good chunk of the national budget, over the years, was spent on administrative matters. Gender and women’s empowerment were found to be the least funded.
Bilal Kargbo, head of corporate services department in the National Revenue Authority, noted that the report focused mainly on the revenue and expenditure sides of government. He acknowledged that government was faced with a “chaotic” economy, and still grappling with a huge financial expenditure. According to him, government was hesitant to proclaim a state of public emergency because of the impact it would have on the economy.
“During the Ebola outbreak there has been a huge evacuation of experts which negatively affect the economy,” he said.
As the economy stalls, Kargbo warned, the NRA must come up with a sound strategy to generate more income for the first nine months of 2015 to enable government pay its workforce, and subsidize public institutions. He described the recently released Auditor-General’s report as a “devastating” blow to the economy, stating that investor confidence had been shaken, creating room for more capital outflow.
“As of now, the country is importing more than it is exporting,” Kargbo pointed out.
Mathew Sandy, a senior officer with the International Monetary Fund (IMF), a key donor agency to Sierra Leone, explained that the weakening of Sierra Leone’s financial system had compelled the Fund to make series of financial interventions in the economy. In 2013 IMF donated US$95.5M to the government, and in 2014 it donated US$39.8M. And most recently, the IMF cancelled US$100M debts for the three hardest hit Ebola nations.
“Funds will soon be made available by IMF to the Sierra Leone government to revive economic activities and improve livelihoods,” Sandy added.
Program Officer of Christian Aid, one of the leading partner NGOs that makes up the Budget Advocacy Network, Ezekiel Conteh, kicked against government’s over reliance on donor support which he described as unreliable.
Such overreliance, Conteh said, could undermine the sovereignty of the state as donor agencies release their funds based on certain conditions. “Quite recently, funds meant for the fight against the Ebola epidemic from the donor community were restricted to only non-governmental organizations making it difficult for government to access such funds,” he pointed out.
Conteh also called on government to halt illicit financial flow and capital flights to improve the economy.
Abdul Rahman Sesay, a veteran civil society activist, who chaired the ceremony, joined the Christian Aid representative in calling on government to put modalities in place for economic efficiency and warned same against relying “overwhelmingly” on donor support. He affirmed that the report compiled by Budget Advocacy Network, as a non-state actor, would bring both institutions together to work out solutions that could better the economy.
“At present two things come into play. The lost revenue and the huge expenditure government is grappling with,” Sesay said.
Deputy Chairman of Anti-Corruption Commission, Shollay Davies who witnessed the occasion as guest speaker, called on government to instill stringent financial discipline in public institutions to prevent wastages. “Monitoring bodies must be highly effective in carrying out their oversight functions to prevent malpractices,” he said, pointing out to the financial mismanagement which the recent Auditor-General’s report revealed. Mr Davies assured that ACC would leave no stone unturned to bring to book those who have been implicated by that report.
BAN which comprises several non-governmental organizations came into existence in 2006 specializing mainly in budget monitoring and public expenditure.
In early 2014, the network published a report which indicted government against huge tax concessions granted to mining companies.
© Politico 24/02/15
