By Sonny Dumbuya
Leonple’s parliament has raised concerns over a proposed tax concession worth about $33 million for petroleum importer Aminata & Sons Limited, with a senior lawmaker warning the deal could significantly reduce government revenue with limited economic benefit.
Deputy Speaker of Parliament and Chairman of the Public Accounts Committee, Ibrahim Tawa Conteh, said the proposed agreement would allow the company to defer taxes over a three-year period, potentially costing the state around $11 million annually.
Speaking on Truth Media’s Morning Devotion programme on Monday, Conteh said the proposal appeared on parliament’s order paper but faced resistance due to its financial implications and was not tabled for debate.
While acknowledging Aminata & Sons’ role in Sierra Leone’s petroleum sector, Conteh said the company, which has operated in the country for nearly five years, is already well established and financially capable of funding its own infrastructure projects.
He said the firm imported about 15.5 million litres of fuel in January alone, underscoring its strong market position.
Conteh questioned the rationale for granting tax incentives to support the construction and rehabilitation of petroleum storage facilities, arguing that such investments should be financed privately rather than through foregone public revenue.
“The petroleum sector remains one of the government’s most reliable sources of domestic revenue,” he said, warning that the deferred tax arrangement could deprive the state of funds needed for national development.
He added that tax concessions should be targeted at sectors that generate significant employment and attract new investment, rather than established companies.
Conteh also highlighted the potential opportunity cost of the arrangement, noting that the deferred taxes, estimated at about 263 billion old leones, could generate substantial returns if retained by the government, particularly at interest rates exceeding 25%.
He described the proposal as an indirect subsidy financed by public resources.
The deputy speaker said parliament would subject the agreement to further scrutiny and confirmed that the matter had been referred to the Ministry of Finance for review. He added that the proposal, in its current form, would not proceed to parliamentary debate.
Conteh emphasised parliament’s role in ensuring accountability and safeguarding public finances, noting that legislative oversight remains essential even after cabinet approval of major agreements.
Separately, reports from neighbouring Liberia have drawn attention to Aminata & Sons Corporation, where civil society groups previously raised concerns about the company’s involvement in government-related petroleum transactions.
According to those reports, the Citizens Solidarity Movement had urged Liberia’s Ministry of Commerce and Industry to disqualify the company from a bidding process involving the sale of petroleum products donated by Japan in 2015.
The reports said the company had earlier participated in handling the donated products and was seeking to compete for a subsequent contract.
The debate over the proposed concession in Sierra Leone continues, with stakeholders calling for transparency and prudent management of public resources.
