Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698079094608.pdf (Sierra Leone)
I u I llt l llIt lll I lll ll I ll ll PARLIAMENT OF THE REPUBLIC OF SIERRA LEOI,IE FOURTH PARLIAMENT OF THE SECOND REPUBLIC OF SIERRA LEONE I THIRD SESSION 2015.

Report of the Joint Parliamentary Committee on Finance and Transport on the Procurement of 100 Buses, Spare Pafts and related Seruices for the Government of Sierra Leone.

Committee Chairmen: Hon.

Hassan B. Sherrif- Finance & Economic Development Committee Hon.
Alpha Babatunde Lewally- Transport and Aviation Committee Parliament Building, Freetown _______-__ -aL|AMENT .f;tr'--:A [,BftA;; Hltt ff-.!

l;: November2ol5.
Table of Content 1.0 Background Information 1.1 Mandate 1.2 Committee Composition 1.3 Methodology 1.4 General Observations 1.5 Committee Findings and Observations 1.6 Conclusion and Recommendations 1 Select Joint Committee on Flnance and Transport Report on Buscs Procurement- September,2o15 | Parliament of Sierra Leone ouoal eJJels ,o luaurelped lsloz'regulaldas -uauraJnroJd sasng uo uodau uodsuerl pue aruEulJ uo eeullrlurort lutol ltqas z anle a3eJ eql 'uoddns 6ulule.t1 lrJluqlal pue sled a.reds'luaudlnba pue qool 'saplqan afueuapleu 'sllun af,uEualuleu alqoul 'sasnq gg1 1o luaualnrord eqt roJ yIOZ '{e61 u1 eulqf, Jo rlgndaX s,aldoed eqf Jo (iln) 'ru1 'sal6o1ouqoa1 Ap6 qryn (OZgOpfalf) pelluotr p olur peralua CJuallc aql.. se ot parraJa.r rageu;aaq) euoe'I erars Jo lueuure^og at{ EuBuasalder (VIr,l) uollp!^V pue Iodsuera Jo fulstutlal aq1 'Ilndso.rd ro1 epua6e aql ol asuodsal u1 pue 'r;;qnd 6u1pna1 aql ol JalpJ 6upq o1 arlsap Eururnq aql qIM papnor 'anoqe aq1 1o i all u!
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{ 'arllsn[ Jo JaFlulN pue lerauag aql Jo saluUo aqf '(V'd'd'N) fi;roqyy tuauarnlord lllqnd leuoBeN uror; suo;pa[qo ou pelref,eJ pel1uof aql Jo uoqn]exa.aqf fsllqM 'slueutallnbal luallAed pue a6elred eLll Jo slueluol lellulltral aq1 pag;cads osle perluof, aql Jo sural aLll ^aurolly 'sreaA onlJo popad e rano alqeled 0Z6'T6Z'Z9 $Sn sl lsll arlrd aqg ul pelertpul se pue paalEe se perluol aql Jo a 1.1 Mandate of the Joant Select Committee Mr. Speaker, Honourable Memberc, the Joint Committee's mandate was established with the following terms of reference: a) to look into the whole commercial transaction rationale for the procured 100 buses and other items in the package, between the Government of Sierra Leone and the Poly Technologies Incorporataon of the Peoplet Republic of China, herein referred to as the "Contractor"/Consignor.
b) to examine whether the procuring entity, the Ministry of Transport and Aviation (MTA), representing the GOSL followed due diligence as prescribed by various legal instruments for such transaction.

c) to determine what constituted the total amount of US$ 1212911920 for the whole transaction.

1.2.

Joint Committee Composition The Members of the two Committees that pafticipated in this investigation are as follows : i. ii.

iii.

iv.

vi.

vii.

viii.

ix.

x. xi.

xii.

xiii.

xiv.

xv, xvi.

xvii.


xviii.

xix.
Hon Hassan B.Sherriff {hairman 1 Hon.Alpha B.Lewally - Chairman 2 Hon.Alusine Marrah Hon.Hellen Kuyembeh Hon.Saah Sangbah Hon.Nicolas Kamara Hon.Abu Bakarr Koroma Hon.Amadu M.Kanu Hon.Bashiru Silikie Hon.Moses Swaray Hon.Kombor Kamara Rosaline J.Smith Hon.Jusu Barry Mansaray Hon.Asumana laia Kaikai Hon.Claude Daniel Melville Kamanda Hon.Brima Conteh Hon.Sidie M.Tunis Hon.Alhaji Seray Dumbuya Hon.Komba E.S Boyah aa 4 Select Joint Committee on Finance and Transport Report on Buses Procurement- September,2015l Parliament of Sierra Leone 1.2.1 Otherc that observed the proceedings are listed below: i. Hon.tbrahim Sesay{lerk of Parliament ii.
Hon Abdulai D.Sesay iii.

Hon.Alhassan Jero Kamara iv.

Hon.Salieu O. Sesay v. Hon.SualihoM.Koroma vi, Edward Stile Jengo vii.

Hon.Amadu Fofanah viii.

Hon.F.A Kaisamba ix.

Hon.Beneh Bangura x. Hon.Dan Y.Sesay xi.

Hon.Aaron A.Koroma xii.

Hon.ParanTarawally xiii.

Hon.MohamedK.Tholley xiv.

Hon.Albert Deen Kamara xv.

Hon.

Abu Jajua xvi.

Hon.

Thomas Mark Turay (Of blessed memory) 1.2.2 Support Staff.

Mr. Speaker, Hon.
Mr. Speaker, Hon.

Members, the loint Committee was supported by Parliamentary Staff of the two Committees in question : Moriba Juius Songa (Clerk ,Transport ) Mahmoud Barrie ( Clerk, Finance) 1.3 l{ethodology Mr.Speaker, Hon.Memberc, the Joint Committee commenced its work on 24th July, 2015 with the Chairmen of the two Committees in question: Hon.

Hassan B. Sheriffand Hon.

Alpha B, Lewally .
The Joint Committee adopted a multi-dimensional approach that was aimed at executing its mandate within the time frame set by the House, To achieve this, the Joint Committee undertook the following activities aimed at achieving the objectives mentioned earlier: a) Wrote summon letters; as enshrined in Section 93(6) of the 1991 National Constitution to the following principal witnesses : .5 Select Joint Commlttee on Finance and Transport Report on Buses Procurement- September,2015l Parllament of Slerra Leone i.
The Director of Public Debts Management in the Ministry of Finance and Economic Development (MoFED) - tlr, SahrJusu, ii.

The Managing Director of the Siena Leone Road Transport Corporation (SLRTC)- Mr, Bockarie Lewis Kamara and technical staff t. The Executive Director of Authority(SLRSA) -Dr,Sarah represented by Mr. Lamin Consultant.
the Sierra Leone Road Safety Finda Bendu, who was ably Koroma,the Technical Transport These witnesses appeared and testified before the Joint Committee and, submitted relevant supporting documents for the consumption of the loint Committee.

b) The second set of withnesses, Mr. Leonard Balogun Kotoma, Minister oF Transport and Aviation and Dr. Kaifala Marah, the Minister of Finance and Economic Development were requested to submit position papers on their respective roles in the procurement process.
c) The final withness, Mr Mahmoud lGdi, who is the local representauve 01 Poly Technologies Inc was requested to submit position paper on his role in the procurement of the 100 buses.

1.4 Genera!

Observations.

The Joint Committee critically observed that: The procurement of vehicles for use by the executive arm and other arms ol Government and, by extension the 100 buses falls under the puruiew of the Ministry of Transport and Aviation (t'fTA).

ii.
ii.

The Ministry of Finance and Economic Development (MoFED) has the crucial role of negotiating the terms and conditions of payment of any commercial transaction, loans and suppliers credit facility.

It is incumbent upon the Minister to lay before Parliament for approval any loan agreement as clearly spelt out in the Public Debts Management Act of 2011. iii.
The Government shall not be bound by the terms of any loan contracted or purported to be contracted for or on its behalf by any person other than Select Joint Commlttee on Flnance and Transport Report on Euses Procurement- S€ptember,2o15 | Parllament of Slerra Leone the Minister responsible for Finance or a public officer, authorized in writing that behalf, by the Minister of Finance.

tn iv.
tn iv.

Public Debts Management Unit ensured that Government's financing needs and its payment obligations are met at the lowest possible cost over the medium to long term, with a prudent degree of risk, and to promote development of the domestic debt market.

The involvement of the SLRSA in this transaction and more speciflcally relating to the giving of technical advice on the customization and standard, befitting the country, was in conformity with the "Road Transport Authority Act,1996".
1.5 Committee Hearings : Findings and Obseruations Mr. Speaker, Honourable Memberc, the Committee observed with keen interest the dispositions of the following.

1.5.0 DIRECTOR OF PUBLIC DEBTS MANAGEMENT The Director of Public Debts Management Mr. Sahr Jusu did inform the Committee that loans are not binding unless they are signed by the Minister of Finance or an official designated under a power of Attorney and ratifled by Parliament.
In this view, the Director of Public Debts Management indicated that he was not aware of any loan secured by the Minister responsible for Finance in the procurement of the 100 buses.

1.5.1 MINISTER OF TRANSPORT AND AVIATION The Minister of Transport and Aviation acted within the established procurement procedures of the NPPA Act 2004, given the preapproval of His Excellency the President to procure 100 buses and workshop equipment.
The Committee is of the view that the Minister of Transport and Aviation went on to do all that was necessary through the normal procurement process to acquire the 100 buses and workshop equipment.
On that note, the Minister of Transport and Aviatidn fully involved the technical Select Joint Committee on Finance and Transport Report on Buses Procurement- September,2015 | Parliament of Sierra Leone Expefi/teams of both SLRTC and SLRSA in ensuring that the buses are technically robust and mechanically reliable to withstand the adverse roads, weather conditions, and the prolong hours ofoperations the buses will be subjected to in Sierra Leone.
1.5.2 MINISTER OF FINANCE iND ECONOMIC DEVELOPMENT The Committee wishes to note that the Minister of Finance and Economic Development has the sole authority to negotiate, sign and lay before Parliament for ratification the terms and conditions of any loan or suppliers credit.
The Minister of Finance and Economic Development provided clarifications that the Ministry of Transport and Aviation entered into a commercial transaction with Poly Technologies Inc, structured on design and buililing in which costs were embedded.

Since it was a commercial kansaction, payment of the buses was provided for under the vote of the Ministry of Transport and Aviation and not from the Public Debts Vote.
Also the Ministry of Finance and Economic Development gave its approval after the Ministry of Transport and Aviation (N[IA) had obtained the no objection of the National Public Procurement Authority (NPPA) and Legal Opinion from the Attorney General and Minister of Justice.
1.5.3 MAHMOUD KADI AND POLY TECHNOLOGIES INC AND HIS RESPONSIBILITIES Mr, Kadi acted as agent in the process of procuring the 100 buses with a view to: Ensuring that PTI had maximum business exposure in Sierra Leone, I Providing local support in Sierra Leone Providing support to Government officials whilst in the Peoples Republic of China.
It is noted that Mr. Mahmoud Kadi coordinated and witnessed the first visit to China in December 2013 by the Minister of Transport and Aviation, Mr. Leonard Balogun Koroma, Mr. Bockarie Lewis Kamara and Mr. James ArStevens both of the SLRTC and 8 Select Joint Committee on Finance and Transport Report on Buses Procurement- September,2015l Parliament of Sierra Leone SLRSA respectively.
The Minister of Finance Dr. Kaifala Marah and the Director of Public Debts Management, Mr. Sahr lusu later joined the delegation.

Also noted was the fact that the first visit was to assess and verify the capacity of Poly Technologies Inc (PTI) and to survey producb on offer so as to make an intelligent decision on products available.

At the end of the day, a contract proposal was forwarded to NPPA for a no objection for sole source procurement.
In the dispose of the contract, Mr. Mahmoud Kadi received an agency fee in six figures; USD currency which is about 6.440lo of the total amount paid on the contract.

Under a normal business climate, this is not unusual and is not an offence to receive a fee or commission on this type of transaction.
1.6 CONCLUSION and RECOMMENDATIONS Upon thorough review of the evidence adduced by the Ministers of Transport and Aviation (MTA), Finance and Economic Development and in line with established procurement procedures, the Committee recommends that: 1.

The matter be closed since no official was found wanting in the entire process.

2.

The transaction was classified as commercial transaction for the procurement of the 100 buses and not a loan transaction.
Therefore it should not be brought to Parliament for approval.

3.

A provision was made in the 2014 NaUonal Budget for the purchase of buses for the GOSL under the vote of the Ministry of Transport and Aviaton 4.

All the 100 buses were received and accounted for by the Ministry of Transport and Aviation, and were put for public display.

5.

Due diligence was followed with regards to the established procurement procedures as contained in the NPPA Act of 2004.
9 Select Jolnt Commlttee on Finance and Transport Report on Buses Procurement- Septemb€r,zol51 Parliam€nt of Sierra Leone 6.

Finally the Government of Slerra Leone should meet iE financial obligation to pay the debt on tlme in order to prevent the Govemment of Slera Leone from getting bad credit ratings, Attached is Annex 2, which is the Contract document, signed by the Minister of Transport and Aviatlon and the Suppllefs invoice.

Faithfully Submitted Joint Committee irmen Hon.

Hassan B.
Hassan B.

Sheriff, Finance @mmittee Hon.
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: ,t. 130,000, 130;0 rsrlodl- 156,000 Y u5 D 12,291,9 20.00 I ARTICLE 4.

TERMS OF PAYMENT 41 4.1,1 4.t.2 Tlre paynrent will be rtrad.e as foliows: 20% of the total contract value:o[ 2,458,384.0C (Say US oottars i*r, Million f our H r.rndred arrd I rf ty.

tiBht 'l.housartd Three Hur.rc.lred arrcl Eighty Four Only) should be.
pard upbn the submission of advance payment guarantee by the CONTRACTOR within one month after signing of the contract.

)9% of the total contract valr.re'of i,229, 192.00 (Say US Dollar's One Million Two Hundred and Twenty Nine Thousarrd One Hundred arrrl Ninety Two Only) should be paid upon th.e submission of adv.rnce - payment Buarantee by the CONTRACTOR wrthin Ihree months after the first paym e nt.
4.1.3 Remaining 70% of contract value shill be paid irr 7 eqtral quarterly based irrsIa]lments, 5tarting fror'n orre rnonth aFter thP shi LUNSI whichever is earlier.

Detailed payrtlent schedule is as follows: nment Lrnder the contra ct, o.r startinB from November 30,2014.

Ut l'" t.- - I D ate 30t0512014 31t0_B-t2414 30t1112014 2p-!92.

!2:91?-._ -, 31t05t2015 i 31 /08/201 5 30t11t2015 29t02t2016 lir /05/201 6 Total CIF Value Ratio of lnstallment {-.-.,...

o9Jt -?o 10 00% * 10 00% r t _1_9i-9% ) .


lo oo% 10.00% 10.00% 10.00.0/n 10 00% 100.00% + 5 , - "_1 ' Paymc nt Due(USD) ?,_4.5.8,384 00 !

1,229.192 OO "/ 1,229 192.0U r( K ._,,ZZtls:.W I i l| 1.229]92.00 1 .229,192.00 1.229,192 00 1 .229.192 00 1 229 19',2 oO 12,291 ,920.00 .._-1,, .Z 9 i,/ ,o erupuaiL,reu, pr.ru uorlP.iado uo stlluo[r (t) aa-Lqt .to1 Strrlrtetl ,aprnord r/!\ otl/v\ 'suos.rad (b) rnol;o pasoduror LUeal e puas lleqs uollvuiNol ,l aql .
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,o ,"r"1r"ritfi:r:::[:r:T;'f ::J aq cit pau-raap aq llpr.ls lle.lltrol arll dn StrrleLU slLiaurnlop srlor.re^ aql C JI ^/:wtffit' lsuorle:.gr:ad.s leJ!uqra] aqt Sulpngrur spoog lo lsrl aql -Z xauuv lsesng lo suoilplr|3ad5 letaLrag "I xauuv JF eouv - r.; ;;"I.;;;,;; Mr Leonard Balogun Koroma Honorable Minister Of Transport and Aviation 7th Floor, Youyi Building Freetown Sierra Leone Ref.
: Proforma lnvoice No.14PLEX0320 from Polv Technolosieg-lnc taltg5leIlalggle Ministrv of Transoort and Aviation for the P rocuremant of B uses and Eouioment with an amount of USD12.231.920.00 1 0'r' January 2014 Your Honorable.

We are pleased, pursuant to the several discussions regarding the above matter during the vrsit of the delegation from your esteetned Ministry to China in December 2013, that we are now in the final stage of the contractual arrangements.
We are therefore presentlng to you our rrrevocable Proforma lnvoice amounting to USD12,291,920.00, including the delailed costing, Delivery, and Payment Terms lhat will govern the conduct of the contract.
We wish to emphasize that the pflces which have been quoted are extremely competitive and inclusive of spare parts for two year and training for certain items and we hope that you will agree that we have indeed extended lengths to provide ]rou with the very high specification and quallty of the articles throughout.
ln addition, we would like to stress that the Payment anci Delivery Terms are most favourable to your Ministry, as we are keen as a Corporalion to maintain a long-term relationship with your Ministry as well as the Government of Sierra Leone.

We hope that you will find the enclosed details to your satisfaction, and look forward to a speedy and favourable response from you.

Yours faithfully.

l) ) icl i {!.

)r un Miao Zec General Manager Africa Department Poly Technologies, lnc.

- Copv to: 1.
- Copv to: 1.

Mr. Kaifala Marah, Honorable Minister of Finance and Economic Development 2.

Mr. Edmund Koroma, Financial Secretary, Ministry of Finance and Economic Development 3.

Mr. Saa Kpulun, Permanent Secretary, Ministry of Transport and Aviatbn a ffi r&1,J11#.q &'8 A POLY TECHNOLOGIES.

INC. Mr. l-eonard Balogun Koroma Honorable MlnlstEr Ot Transport and Aviation Tttl Floor, Youyi Buildlng Fr€6town Slerra Leons PROFORMA INVOICE Port of Shipmont: China port Port of Ossttnatlon: Freotown, SL.
lnvoica No.
'l4PLEX0320 Data: Fobruary 19, 2014 S/N I Items 1 City Bus LCK6702D 2 City Bus LCK6780D Provinclal Bus type LCK6108T Mobite workshop vehicle type QDZ2160YXQ2 Operation managsrnent vehide Spare parts for vehicles lnjection Pump Test Machine type 12PSDB150 lnieclor Nozzle Test .Machine type PJ.4O Tools to Service Distributor type Pump and lnline lniectcl type Pump Battery Charger 2 3 4 5 o 7 I 10 Portable Charger Mobile Specifications atv Unit CIF Unit Frlce Amount type 19+1 seaE, S?jAN/1?,3HP, engine: EQB12A20, A./C type 30+1 soats, 1 15lflV/'l54HP, Engine: 1SF3.653154, NC 48+1 seat, 170K$ilmiHP, engine YCOJ230-20, Euro ll, NC 4x4, lilectanical Maintenancs purpose.
Diesel Gen6rator, Zf hydraulic caane, 5 @raulic wlneh Type X8, with tront guard bars For normal runhing of 2 years Calibration for mectanical diesel inledion pump t6st for mechanical diesel injection pump 2 J 1 1 1 50 Nos 74,815 3,740,750 20 Nos 104,000 2,060,000 30 Nos 137,950 4,138,500 Nos 251 ,460 s02,920 Nos &1,200 183,600 set 923.20S 923,209 Nos 243,743 243,743 Nos 657 .1 NoS 829 657 A?O NHCO72-30, with the capacity to dlarg€ up to six 12 volts NHCD48-30, with the capacity to charge up to four 12 Vnltc h2ttc'i, 'l ^ ri--\ at a time 1 1 Nos 1,486 1,486 Nos 1,115 1.115 Z Items Speclflcations otv Unit p 1*4,J1+ *1.4 f*'2; { POLY TECHNOLOGIE g tNc.
's/N 12 IJ 16 17 18 2U ,21 T2100111 Valve Grinding Machine 3M9390A Cylinder Head Refacing Machine Con-rod Bearing Boring Machine Valve Seat Machlne - Cyllnder Liner Boring Machine Polishing Machine '18210D Boring T8590 T8120X20 DG150C MDY63O, 3!irpa Pressing Mechine lndustrial Centre Lalhe Machine Standing Drill Machlne lnternal Micro Meter 22 Outside Miero Meter z.t Delivery training 24 Technical support 1 1 1 1 I l I l-i 630KN,l 1 1 1 1 1 cDA52s0A 24120 0-150mm 50-75mrn/ 75-100mm/10G125m 4 persons for 3 months; including lntemaffonal return ticket, accom!lodatlon, food 2 routine inspedions and servica ln one year wananty.
incluc$ng intemational refum ticket.

accornrnodatlon, food CIF Unit Prlce 5,544 91 Nos Nos Nos 26,782 Nos I I Nos Nos Nos Nos Nos Nos Nos 43.205 56,984 343 19,147 34,808 1,658 ))a 223 ,qmount I 5,544 91 26,782 43,205 56,984 343 19,1471 34.808 1,658 223 130,000 130,000 156,000 156,000 Total USD 12.291.920.00 GRAND TOTAL C.I.F FREETOWN.

cost and international insurance{SlN OSURE) ive of freloht.

insurance.
insurance.

fundinq us$12.291.920.00 Say U.S. Dollar Twelve Mllllon Two Hundrpd and Ninety One Thousand Nlne Hundred and Twenty CIF Freetown Only.

Rerirark: 1.

Detailed technical specs of the vehicles and equipment are attached.

2, Prices for all iterns.

aro bassd on the quanfity in the above list, and subject to any change in : quantity.
3 / t#1,J44 *.4 W,l; A POLY TECHNOLOGIES, INC. Mr. Leonard Balogun Koroma Honorable Mlnistsr Of T6nsport and Aviatlon 7th Floor, Youyl Building Freetown Slerra Leone PROFORMA INVOICE Port of Shipmsnt: China port Port of Destlnatlon: Freotown, SL.

s/N Items Specifications Clty lnvoicE No.

14PLEX0320 Oate: February 19, 2014 Unit CIF Unit Price Amount I I I I I 19+ 1 seats, 92t( //123HP.

eng'ne: EOB12$,20, A,/C I 30+1 ssats.

1 1 51(VV/1 54HP, Engine: 1SF3.853154.
NC 48+1 seat, 1701<VV|22AHP, engine YC6J230-20, Euro ll, NC 4x4, Mechanical Maintenance purpose, Diesel Generato,r, Zf hydreulic crane, 5 hydraulic winch Type X8, with front guard bars I I For normal running of 2 years Calibration for mechanical diesel injedion pump tast for mechanical diesel inieclion pump I I 2 J 1 I '1 50 Nos 74,815 3,740,750 20 Nos 104,000 2,080,000 30 Nos 137,950 4,138,500 Nos 251.460 502,920 Nos 01,200 183,600 set 923,209 923,209 I Nos 243,743 243,743 ,| City Bus type LCK6702D City Bus type 1CK67800 Provincial Bus type LCK6108T Mobile workshop vehicle type oDz2160YXO2 Operation manag€ment v6hicle Spare parts for vehicles lnjection Pump Test Machine type 12PSDB150 lniector Nozzle Tost Madrin€ type PJ-40 Tools to Service Dishibutor type Pump and lnline lniector type Pump Battery Charger 2 2 o I 4 5 6 7 I o NHCO72-30, with the capacity to charge up to six 12 volts battery at a time NHCD4&30, with the capacity to charge up to four 12 vnlle hatto^, 'r ^ t;.^^r 1 1 10 Portable Charger Mobile Nos 657 .1 Nos 825 Nos 1,486 657 829 1,486 I I Nos 1,115 1.1 15 It