Africa 24 newspaper

A coalition of civil society organizations has released a position paper urging Sierra Leone government to improve transparency and accountability in public debt management.

The position Paper on government debt reporting and management was released on August 5, 2024.

They highlighted critical reforms needed in the 2011 Public Debt Management Act to ensure responsible borrowing and sustainable development.

Their position paper is titled, “A Call to Strengthen Its Using of the Legal Framework,” which emphasizes the importance of comprehensive disclosure of debt information.

The number of CSOs calls for the government to capture and manage all public debts, including contingent liabilities, guarantees, and on-lending.

The document says  a thorough understanding of the country’s debt is crucial for effective debt sustainability analysis and overall economic stability.

One of the key recommendations is the establishment of a public debt ceiling, either as a percentage of GDP or domestic revenue, ” the document reads in part.” “This ceiling would help control government spending and prevent excessive debt accumulation.”

The asvocates stress   for regular external and internal audits of public debt, as well as more robust parliamentary oversight, including the review and approval of the Medium-Term Debt Strategy, Annual Borrowing Plan, and Debt Sustainability Analysis.

They call for transparency and they believe that public access to debt information are central themes highlighted in the position paper.

“We call for the Ministry of Finance to publish detailed debt reports, including terms and conditions of loans, on its website.”

They also recommend the removing of “confidential clauses” in loan agreements, except for those related to security issues, and the creation of an online public register for real-time access to debt data.

National Democratic Institute and Budget Advocacy Network (BAN) , and other  civil society organizations, say reforms are essential for good governance and reducing the risks associated with unsustainable debt.

They said they remain committed to working with government, international organizations, and other stakeholders in a bid to review and enhance the Public Debt Management Act.

By increasing transparency and accountability in debt reporting, they believe, the paper aims to foster a more informed public, prevent corruption, and support Sierra Leone’s sustainable development goals.