On September 4, 2024, officials from the Institute of Public Administration and Management (IPAM), University of Sierra Leone, addressed allegations of mismanaging $4.5 million in connection with a development project in Bureh Town, Western Rural Freetown.
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The controversy revolves around claims that IPAM
failed to protect public funds, leading to significant financial losses after
partnering with a Nigerian company.
During a press briefing, Duramany Lakkoh, the
project consultant, defended IPAM’s actions and provided a detailed overview of
the proposed residential campus project. He clarified that FEMAB Properties,
the Nigerian company in question, was introduced to IPAM by the Sierra Leone
Investment and Export Promotion Agency (SLIEPA) in January 2016.
The initiative was first proposed by the
then-Deputy Vice-Chancellor, Professor Allyson Sesay, and Vice-Chancellor,
Professor Ekundayo Thompson. Lakkoh explained that his role was to create a
business plan and cash flow projections for the project.
These were submitted to the Public Private
Partnership Unit (PPP) for review and subsequently assessed by the Ministry of
Justice, which advised on a joint venture agreement between FEMAB Properties
and the University of Sierra Leone, represented by the Ministry of Technical
and Higher Education.
By August 1, 2018, the Solicitor General had
written to the Ministry of Technical and Higher Education, recommending that
the contract be finalized, pending approval from the Ministry of Finance.
The following day, the Ministry of Finance gave
its approval through a letter of non-objection, allowing the contract to be
signed between the University of Sierra Leone (USL) and FEMAB Properties at a
State House ceremony. This signing was witnessed by Professor Aiah Gbakima,
Minister of Technical and Higher Education.
Lakkoh further detailed that the financial
agreement for the project had been divided into milestones, with both IPAM and
FEMAB jointly financing the phases without any financial guarantees. Revised
structural proposals and updated bills of quantities (BOQ) were also prepared,
showing that the project was financially viable.
The consultant noted that the cash flow
simulation was based on the potential income from student fees and enrollment
numbers, meaning the project would rely on private financing. He also disclosed
that the university had already repaid $3.5 million of the initial loan used to
kickstart the project.
Lakkoh highlighted that, on March 29, 2019, the
Ministry of Finance confirmed the government’s readiness to provide a $37.5 million
bank guarantee to support repayment obligations under the development contract.
This guarantee was ratified by Parliament on July
16, 2019. As part of the agreement, Parliament required IPAM to contribute $5
million upfront, representing 25% of the $50 million project, while the
government would provide the remaining 75% through a bank guarantee.
IPAM later informed FEMAB Properties that it had
secured a $3.5 million revolving credit facility from the United Bank for
Africa (UBA). Payments totaling $4.5 million were made to FEMAB Properties,
including a $1 million payment that was part of IPAM's 25% contribution to the
project.
During the briefing, Professor Aiah Lebbie,
IPAM’s current Vice-Chancellor and Principal, acknowledged that the future of
the project remained uncertain.
He explained that consultation with the Finance
and General Purposes Committee (F&GPC) would be necessary to determine
whether the project could continue. Professor Lebbie stressed that financial
resources and stakeholder engagement would play critical roles in deciding the
next steps for the project.
“Our primary concern is whether the project will
proceed,” Professor Lebbie stated. He added that further discussions would be
needed before making a final decision on the project's viability.
In addition to the university’s internal review, the Anti-Corruption Commission (ACC) has launched an investigation into the matter.
While the investigation is ongoing, IPAM officials, including Tonya
Musa, emphasized that the university wanted to publicly clarify its position
and address any misconceptions about the project's financial management.
As stakeholders continue to voice concerns over
the alleged loss of funds and the handling of the project, IPAM’s leadership
has reaffirmed its commitment to transparency and accountability.
The university is seeking to resolve the
controversy through both internal consultations and cooperation with the ACC’s
ongoing investigation. For now, the fate of the Bureh Town campus project
remains in limbo, as IPAM waits for further financial backing and a resolution
to the ongoing legal scrutiny.
The outcome of these efforts will be crucial in
determining whether the project can move forward, and whether IPAM can recover
from the financial and reputational challenges posed by the allegations.