By Ishmail Saidu Kanu
The Ministry of Fisheries and Marine Resources has been subjected to audit scrutiny following findings disclosing outstanding financial obligations, inconsistencies in licensing practices, and potential revenue losses to the Government of Sierra Leone.
According to the 2024 Audit Report, Allantaco Fishing Company is indebted to the State in the sum of US$97,400, comprising US$93,900 in licence fees and US$3,500 in fines.
The Company’s vessel, Jianmei, was reportedly apprehended for engaging in illegal fishing activities within the Inshore Exclusion Zone (IEZ), in addition to failing to discharge previously accrued licence liabilities.
Notwithstanding these infractions, the auditors observed that there is no evidence of payment of the said sums, nor any demonstrable steps taken by the Ministry to enforce recovery, thereby exposing the State to potential revenue loss.
In its official response, the Ministry indicated that it had sought Cabinet approval to waive all outstanding arrears, including those owed by Allantaco Fishing Company, purportedly to boost investor confidence within the fisheries sector.
However, the auditors noted that the said Cabinet approval was not presented for verification, with the consequence that the matter remains unresolved.
Furthermore, the audit identified material inconsistencies in the computation and assessment of licence fees and royalties, in contravention of the provisions of the Finance Act 2020.
These irregularities resulted in a cumulative variance of US$101,414, comprising US$76,094 in licence fees and US$25,320 in royalties, representing a substantial shortfall in public revenue.
The Ministry attributed the discrepancy to an interim administrative arrangement whereby fishing companies were permitted to pay for one-month licences to facilitate the testing of new or refurbished vessels, as opposed to the issuance of free test licences.
The Ministry maintained that this arrangement did not occasion any financial loss and undertook to ensure compliance with the statutory licensing regime going forward.
Notwithstanding the foregoing, the auditors reaffirmed that the Finance Act 2020 mandates a minimum licensing period of three months for industrial fishing companies.
The deviation from this statutory requirement constitutes non-compliance, and accordingly, the issue remains unresolved.
The audit therefore recommended that the Ministry’s leadership take immediate and appropriate measures to recover the outstanding sums and ensure strict adherence to applicable financial and statutory provisions in order to safeguard public revenue.
