PAC Grills Tourism Ministry Over Missing Lease Payments and Contract Discrepancies

By Abdul Rahman Bah

The Public Accounts Committee (PAC) of Sierra Leone’s Parliament, chaired by Deputy Speaker Hon. Tawah Conteh, has subjected the Ministry of Tourism and Cultural Affairs to rigorous scrutiny over inconsistencies in lease payments related to a government-owned hotel. The hearing, held at the Administrative Building at Tower Hill in Freetown, focused on findings from the 2023 Auditor General’s Report, which flagged financial irregularities concerning lease agreements between the Ministry and Hilltop Hotels Group.

During the session, the Director General of the Ministry of Tourism and Cultural Affairs, Mohamed Jalloh, faced a barrage of questions regarding discrepancies in the lease agreement. At the heart of the inquiry was a contradiction in official documents regarding the commencement date of the lease. The agreement, signed between the Ministry and Hilltop Hotels Group, reportedly stated that the lease period began on September 14, 2010. However, further evidence suggested that the lessee only took possession in 2014, raising serious questions about when payments should have begun and whether the government had lost substantial revenue due to delayed enforcement of the agreement.

The committee pressed the Director General on why the Ministry failed to ensure that the leaseholder made payments by the agreed terms. Additional revelations emerged when it was disclosed that while lease payments were supposed to be channeled through the Ministry, funds were instead directed to the National Revenue Authority (NRA) from as early as 2015. This change in payment structure seemed to have created gaps in accountability, making it difficult for the Ministry to properly reconcile revenue received from the lease. The PAC demanded explanations on why the Ministry did not take proactive steps to track payments and hold the leaseholder accountable for arrears.

A review of documents presented before the committee further revealed that the lease agreement had been amended through a supplemental deed, which reaffirmed the commencement date as September 14, 2010, and stipulated a rental fee of $60,000 per year for the first five years. The agreement also included a renewal clause for an additional 25 years. Despite this, payments from the lessee remained inconsistent, and the committee noted with concern that records provided by the Ministry only covered four years of payments, leaving an 11-year gap unaccounted for.

In response to concerns over missing payments, Hon. Tawah Conteh emphasized that the Ministry had a direct responsibility to conduct financial reconciliation rather than relying solely on reports from the NRA. He criticized officials for failing to ensure that the government received the full amount owed over the years and questioned whether the Ministry had been lax in enforcing the terms of the lease agreement.

As the hearing progressed, it became evident that the Ministry had written multiple letters to the NRA requesting confirmation of payments made by the hotel group. However, despite these efforts, complete payment records had not been provided, raising suspicions about potential revenue leakage. Hon. Conteh made it clear that without proper documentation from both the Ministry and the NRA, the government could not ascertain whether it had been shortchanged in lease payments.

The PAC questioned whether the Ministry had engaged in adequate oversight of the lease agreement and whether it had allowed financial mismanagement to persist over the years.

In a heated exchange, committee members demanded that all outstanding payment Hilltop Hotel Groof up to provide evidence of payments made and reconcile any discrepancies with the NRA’s records. Given the gravity of the situation, Hon. Conteh warned that legal action could be considered if it was determined that government funds had been mismanaged or lost due to negligence.

The ongoing probe into the lease agreement underscores broader concerns about financial accountability within government institutions. As the PAC intensifies its investigation, there is growing pressure on the Ministry of Tourism and Cultural Affairs to provide full transparency on how it has managed lease agreements and whether it has effectively protected public funds.

With Parliament’s scrutiny set to continue, the PAC has made it clear that it will not relent until all outstanding questions are answered and appropriate measures are taken to ensure that the government recovers any lost revenue.