By Ralph Simeon Sesay
Mrs. Blanche Gooding, former Director of Finance at the Road Maintenance Fund Administration, has testified at the ongoing William Annan Atugbah Commissions of Inquiry on her role as Director of Finance in the execution of several road projects.
Mrs. Gooding noted that she took up office in November, 2012 and left in May, 2018 as Director of Finance and that part of her responsibilities was to oversee all financial transactions and prepare the annual budget statement of the administration.
The witness explained that the financial processes leading to payment of funds by the RMFA involves receipt of advance payment certificates and collaterals and interim payment certificates from the SLRA through the Ministry of Works and Public Assets.
The RMFA, she continued, was not involved in the negotiation of contracts as well as their execution and monitoring. All procurement processes for road contracts were done by the SLRA.
“As Director of Finance”, she explained, “I was obliged to look for collateral security in terms of all advance payments to contractors and also approve interim payment certificates for all payments to road contractors including the contract agreement for these projects.”
She threw light on a contract awarded to BEGEC/TP for the construction of the Kissy, Fourah Bay Road and Mountain Cut projects, noting that the RMFA had paid 30% advance payment to the contractors after they provided a collateral to SLRA.
The company BEGEC/TP, according to the witness, was not able to execute the project even though they were given the advance payments to undertake mobilization of equipment to start the construction.
The snail pace of the company to execute the project, Mrs. Gooding noted, led to the termination of the contract by the Sierra Leone Roads Authority. She further told the Commission that she could not tell whether the company, BEGEC/TP, refunded the 30% advance payment made to them to start the project; since the SLRA, as a client, handles the issues related collateral security on advance payments as presented by the contractor.
Mrs. Gooding was also asked by the lead counsel to comment on the King Jimmy Embankment project, which had cost the Government Le4.7 billion. The project later attracted additional amounts presented for payment.
In response, the witness noted that she is aware of the King Jimmy Embankment project and had effected the advance payment after receiving collateral security of the said advance payment from the contractor.
State counsel Musa Mewah also asked the witness to explain to the Commission the circumstances surrounding the offering of a five (5) million loan to FEMET/BENTON VILLA Construction Company for the Hill Cot Road project.
Mrs. Gooding told the Commission that it was a clear miscalculation of the financial statement of the RMFA of 2014 by the Auditors, as they, at the RMFA, had expressly told the auditors that the five million United States dollars was never a loan to FEMET/BENTON VILLA but rather an advance payment for the Hill Cot Road project as instructed by their supervisory Ministry, the Ministry of Finance, with the concurrent approval of the Board of Directors.
The witness continued that these payments were done in 2 and 3 million United States dollars, respectively, through two memoranda of understanding instead of advance payment certificates because, according to her, the situation was different.
She later emphasized that the two memoranda of understanding had expressly stated that the Ministry of Finance, whose responsibility it is to handle all payments relating to rehabilitated roads, was to refund the said money whenever advance payments are due to the contractor.
Mrs. Gooding also revealed attempts made by the RMFA to retrieve the said money, including holding a meeting with the contractor where they both agreed that future advance payments for the Waterloo Road Project should be used as a way of recovering the said funds.
“This was not done up to the time I left in May, 2018,” the witness disclosed.
“I learnt that the Waterloo Roads project had stalled. We at the RMFA had only honored one interim payment certificate for the entire project,” the witness noted.
Mrs. Gooding was also squeezed on the Le80 billion accrued as loan by the RMFA from the Rokel Commercial, Sierra Leone Commercial and Mortgage and Commerce Banks; and noted that the RMFA was compelled to take such loans against the situation that prevailed at the time wherein the RMFA was not getting fuel levies as subsidies to execute their mandate at the time.
Another justification she gave is that the RMFA was assured by the then Financial Secretary, Edmond Koroma that the fuel subsidies will rise to Le500 per litre. This did not happen and so they had to loan from the commercial banks to be able to meet an instruction given to them by the Ministry of Finance that they should start funding all rehabilitated roads.
Responding from Musa Mewah, on whether they sought legal advice from the Law Officers’ Department before undertaking the loans, she responded that it was not necessary since the loan was domestic.
The witness was very clear that they, at the RMFA, had limited roles and responsibilities in the implementation of roads contracts and that the SLRA, as the client, had to negotiate contracts as well as verify and forward them to the RMFA for payments.
It will be recalled that the previous Government of Ernest Koroma had road and infrastructure as its flagship project and colossal sums of money was reportedly spent in the sector, which also had huge kickbacks.
Many Sierra Leoneans, international partners and the current President had noted that these roads were marred with procurement irregularities and were hugely overpriced. The Sierra Leone Roads Authority and the Road Maintenance Administrations were key in the management of these roads with the Ministry of Works and Infrastructure and the Ministry of Finance providing oversight and funds for the projects, respectively.