Concord Times (Freetown)
Rachel Horner
14 January 2009
Freetown — National power authority, NPA is to account for Le 11.9 billion for arrears owing to the government.
Under the World Bank-supported emergency power project, which is partly funded by the government of Sierra Leone through the use of resources from the multilateral debt reduction initiative (MDRI), the NPA was to be making a monthly payment of Le 2 billion to the consolidated revenue fund (CRF) starting April 2008.
Up to August 2008, NPA did not pay anything into the CRF and as a result accrued a total of Le 10 billion outstanding. They also owe some Le 1.92 billion for a loan extended in December 2006. This brings the total payment in 2008 to Le 11.9 billion.
Meanwhile, NPA has been ordered also to pay Le 2 billion monthly for September to December 2008. They have been instructed to pay the monthly Le 2 billion without any delay.
NPA general manager Dr Zubariu Kalokoh said they owe the government but the government too owes them. "Government is owing us Le 8 billion, so we have to rearrange and do cross debt," he said.
Kalokoh said they were discussing with the government's financial office to see how best government would subtract Le 1 billion each month until they are able to settle their debt; however, NPA has vowed to pay the remaining Le4 billion.
However, an authoritative official source has confirmed that a commission of enquiry was going to be set up to find out exactly how NPA's money was being spent. They source said both past and present managements would be required to account for part of the said money.
In this regard, the government in consultation with World Bank would appoint resident experts at the NPA for billing and collections and financial control with line authority, and a supervisory engineer to advise the NPA board.
In the meantime, steps are being taken to accelerate the restructuring of NPA and improve its finances, whilst preparations are advancing for the adoption of a comprehensive electricity tariff policy.
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