A coalition of civil society organizations has released a position paper urging the Sierra Leone government to improve transparency and accountability in public debt management. The paper highlights critical reforms needed in the 2011 Public Debt Management Act to ensure responsible borrowing and sustainable development.
The position paper, titled “A Call to Strengthen It Using the Legal Framework,” emphasizes the importance of comprehensive disclosure of debt information. It calls for the government to capture and manage all public debts, including contingent liabilities, guarantees, and on-lending. The paper argues that 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. This ceiling would help control government spending and prevent excessive debt accumulation. The paper also advocates 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.
Transparency and public access to debt information are central themes of the position paper. It calls for the Ministry of Finance to publish detailed debt reports, including terms and conditions of loans, on its website. The paper also recommends removing confidentiality clauses in loan agreements, except for those related to security issues, and creating an online public register for real-time access to debt data.
The National Democratic Institute and the Budget Advocacy Network, civil society organizations behind the paper argue that these reforms are essential for good governance and reducing the risks associated with unsustainable debt. They are committed to working with the government, international organizations, and other stakeholders to review and enhance the Public Debt Management Act.
By increasing transparency and accountability in debt reporting, the position paper aims to foster a more informed public, prevent corruption, and support Sierra Leone’s sustainable development goals.
