By Amin Kef Sesay
The much long awaited 2020 Auditor General’s Report is finally out with the startling revelation of Le153.9 Billion reported as public funds that could not be accounted for by MDAs. As stated in the Forward of the Report, the Auditors intimated that they are delighted to present their professional opinion on the Accounts of Sierra Leone for the Financial Year 2020.
It must be noted at this juncture that indeed, as attested by the Auditors who authored the Report, it is a presentation of their professional opinion which therefore invariably means that certain conclusions they arrived at were not factual. Such is understandable against the backdrop that as human beings the Auditors are not infallible; they are liable to mistakes.
Besides, the International Standard on Auditing 310 – Knowledge of Business requires: “In performing an audit of financial statements, the auditor should have or obtain a knowledge of the business sufficient to enable the auditor to identify and understand the events, transactions and practices that, in the auditor’s judgment, may have a significant effect on the financial statements or on the examination or audit report”
In performing the 2020 audit, if the ISA 310 principle was implemented, the auditor should not have included in his report audit point 2.2.7 (of page 86 of the 2020 Audit report) – “Facility given to non-creditworthy customer – A loan of Le 8.3 billion was issued to a customer (Pavi Fort). The customer was seriously indebted to the banking industry of Sierra Leone to the sum of Le 40 billion from four other commercial banks. The sum of Le 3.7 billion had been written off according to review of the credit reference report obtained from the Bank of Sierra Leone…”
It must be made clear at this point in time that the Auditor General committed an error and therefore needs to know the following:
Firstly, Pavi Fort is a leading Road Construction company in Sierra Leone with proving track record with the necessary stakeholders. That since January 2020, the company has acquired six (6) contracts and is implementing those said contracts to the tune of Le 370 billion. All of the contracts are in Sierra Leone and they were all acquired through competitive bidding. That Pavi Fort Al Associates is the first Sierra Leonean owned construction company that have acquired international contract in The Gambia to the tune of US$ 20 million through competitive bidding.
The Auditor General should also know that there are 5Cs in Credit analysis. These are Capacity, Capital, Character, Collateral and Condition. Pavi Fort’s much talked-about Le 40 billion exposure to the financial industry can only fall under capacity and not character of the 5Cs of credit analysis.
Hence, the Le 40 billion could not be used to class Pavi Fort as a non-creditworthy customer under character. This is so because the company’s capacity is excellent, the Le 8.3 billion advanced to the company on the 9th July 2019 which had accrued interest to a total of Le 9.8 billion was fully paid on the 21st August 2020. Please see the statement below:
Also it should be known that Pavi Fort did account for a turnover of Le 107 billion with SLCB from the inception of the account on the 1st September 2015 to 9th July 2019, when the Le 8.3 billion was advanced to the company and Le 158 billion account turnover with SLCB from 9th July 2019 to 17th December 2021. This sums up a total account turnover of Le 265 billion with SLCB from inception of the account 1st September 2015 to date – please see below.
Please also note that Pavi Fort has excellent account turnovers with other five (5) commercial banks in the country. Therefore, the company’s capacity to handle the touted exposure of Le 40 billion cannot be overemphasized.
Thirdly, Management of Pavi Fort is also throwing a challenge to the Auditor General of Audit Sierra Leone that Pavi Fort as at 9th July 2019 – the date of disbursement of Le 8.3 billion at SLCB, that the company had not benefitted from any write off from any financial institution.
Because of these facts stated above Management of Pavi Fort is tempted to believe, SLCB refused to comment on that audit point as it had no merit to be on the Management letter.
As a company Management is of the strong conviction that audit point 2.2.7 (of page 86 of the 2020 report) – “Facility Given to Non-Creditworthy Customer” is a deliberate attempt to blackmail Pavi Fort through a “Snipper Audit” by the Auditor General of Sierra Leone and by “Sky Times” newspaper who on Friday 17th December 2021, did a front-page headline story on the same issue captioned: “Facility Given to Non-Creditworthy Customer… Commercial Bank & Pavi Fort to Cough Up Le 8.3 Billion”.
With all the above facts Management of Pavi Fort is requesting a public apology from the Auditor General of Audit Services Sierra Leone and that audit point 2.2.7 (of page 86 of the 2020 audit report) is expunge from the report immediately.
That a public apology be offered by the “Sky Times” newspaper for publishing falsehood and the piece be published in the newspaper with front page headline before Thursday 23rd December 2021.
