Port Authority GM Calls for Legislative Reform Amid Financial Strain
By Benjamin S Conteh
On Monday, November 11, 2024, in the grand setting of the Administration Building at Parliament Tower Hill in Freetown, Yakuba Askia Bio, General Manager of the Sierra Leone Port Authority, addressed the Public Accounts Committee (PAC) on the operational and financial challenges facing the authority. His presentation highlighted historical shifts, current revenue challenges, and the need for policy support.
Yakuba began by providing a historical overview of the Port Authority, emphasizing a major transition in 2010 when the government privatized many of its functions. Previously, the Port Authority managed most operational tasks, but privatization transferred critical services, such as cargo handling and logistics, to private concessionaires. This decision significantly limited the Port Authority’s role, shifting its focus away from daily operations.
Following privatization, the Port Authority transitioned into a self-sustaining entity, fully dependent on its own revenue without government subsidies. Although it generates income primarily from marine charges, a significant portion is channeled to the government through concession fees, leaving limited funds for operational costs. Yakuba stressed that this revenue model restricts the authority’s ability to meet essential needs, making it difficult to sustain vital services without external support.
Yakuba also discussed the complex legal framework governing the Port Authority’s revenue and expenditure. While marine charges remain the primary source of income, the authority does not receive any portion of the concession fees collected by private operators. This structure places financial pressure on the Port Authority, affecting its ability to fund essential operations, such as piloting and fuel costs for guiding vessels into port services for which it receives no direct compensation.
Despite revenue constraints, the Port Authority is still required to pay fees to government bodies, including the National Revenue Authority (NRA) and the National Social Security and Insurance Trust (NASIT). Yakuba highlighted that, although the Port Authority meets these obligations, there is inconsistency in how other agencies fulfill their financial responsibilities. He argued that any waivers or exemptions granted to one agency should be applied uniformly across all to maintain fairness.
Yakuba concluded with a call for legislative and policy support from the Ministry of Finance and Parliament. He emphasized the urgent need for adjustments to the existing legal framework to clarify roles, ensure stable revenue streams, and allocate a fair share of concession fees to strengthen the authority’s financial position. He urged that legislative action is essential to address overlapping functions and provide the Port Authority with the resources needed to uphold its responsibilities effectively.
