By Shadrach Aziz Kamara
Deputy Leader II of the Opposition in Sierra Leone’s Parliament, Hon. Aaron Koroma, has thrown his support behind the government’s proposed debt-to-equity swap deal with Sierra Maira Holding 1 Limited but urged for greater clarity and transparency in how the agreement was structured, particularly concerning asset valuation and tax exemptions.
The debate followed the tabling of two financial agreements by the Minister of Finance, Hon. Ibrahim Fantamadi Bangura, including a deal converting $14 million in tax obligations into a 10% equity stake for the Government of Sierra Leone in a major bauxite mining company operating in Bo and Moyamba districts.
“It’s a good mechanism,” Hon. Koroma said. “Instead of the government losing out entirely, we now have shares in the company’s investment. In the long run, this could bring tangible benefits to our national coffers.”
He acknowledged the precedent for such agreements, recalling a similar deal in which $13 million was postpaid to the government, which he described as a success. However, he expressed concern about the absence of a clear valuation report on the company’s assets and liabilities.
“We should not be blindfolded. The minister should have laid before us the full valuation of the company’s assets and the analysis that led to the 10% stake,” Koroma asserted. “Without knowing the full value of the company, how can we be sure we’re getting a fair deal?”
The opposition lawmaker was particularly skeptical of the two-year tax holiday offered to the company as part of the deal. While he acknowledged that the 10% equity stake is meant to offset prior and future tax obligations, he questioned whether the holiday was too generous and insufficiently tied to performance benchmarks.
“It seems like a blanket tax holiday,” he warned. “I would have preferred a conditional arrangement one tied to specific deliverables within those two years so that we ensure the country gains something measurable.”
He urged that any forgone revenue during the holiday period should have been quantified and added to the overall equity calculation, or at the very least recorded as deferred value to be claimed at a later stage.
Turning to the second agreement laid before the House Sierra Leone’s accession to the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) Hon. Koroma gave his full support, emphasizing that it posed no immediate financial burden on the state but carried immense long-term benefits.
“This is a strategic move. It helps remove a major bottleneck in our investment environment the lack of sovereign guarantees,” he said, noting that ICIEC membership would bolster investor confidence, de-risk large infrastructure investments, and ultimately stimulate economic growth and employment.
He highlighted how participation in the ICIEC, a specialized institution under the Islamic Development Bank (IsDB), would enhance the government’s financial credibility, offering political risk insurance and credit guarantees that are particularly attractive to private investors and export-driven sectors.
In conclusion, Hon. Koroma expressed his party’s general agreement with both agreements, calling them “largely non-controversial” and praising the Finance Ministry’s efforts. However, he reiterated his call for the government to adopt a more transparent and analytical approach in future negotiations involving state assets and fiscal concessions.
“We support these agreements,” he concluded, “but let’s make sure we are always doing it in a way that protects the long-term interest of the state and the people of Sierra Leone.
