Freetown, 12th October 2026- Civil society organisations have called for stronger transparency, accountability and community participation in the management of mining revenues transferred to host communities, warning that significant gaps in governance and oversight are undermining development in mining-affected areas across Sierra Leone.
The call came when the Network Movement for Justice and Development (NMJD), in collaboration with the Natural Resource Governance and Economic Justice (NaRGEJ) Network and with support from Development and Peace Caritas Canada (D&P), presented findings from its 2024 Social Audit on Subnational Mining Revenue Transfers at the VANILLA Complex in Aberdeen, Freetown.
The audit examined revenues transferred by mining companies to Community Development Committees (CDCs) between 2017 and 2023 and assessed how those funds were managed and utilized for local development projects.
Conducted with technical and financial support from D&P and professional accompaniment from the Budget Advocacy Network (BAN), the audit covered five chiefdoms across Kono, Kenema, Moyamba and Bonthe districts. It focused on the operations of Koidu Limited, Sierra Diamonds, Gold Lion Mining Company Limited, Sierra Mineral Holdings and Sierra Rutile Limited.
Presenting the findings, Natural Resource Governance and Economic Justice Coordinator, Emmanuel M.T. Gbondo, said the audit revealed serious concerns regarding governance, compliance and accountability in the management of community development funds.
According to the report, several CDCs were found to have weak governance structures characterized by poor transparency, limited community participation and inadequate handover processes between outgoing and incoming executives. The audit noted that these shortcomings created mistrust within communities and hindered effective project management.
The report also found that most mining companies examined failed to comply fully with the legal requirement to contribute not less than one percent of their gross annual revenue to Community Development Funds as stipulated under Sierra Leone’s mining laws.
It stated that Sierra Rutile contributed a fixed annual amount of US$100,000 regardless of generated revenue, while Koidu Limited reportedly paid only 0.25 percent of gross annual revenue before ceasing operations. Sierra Diamonds was also found to have paid below the legally prescribed threshold and left behind substantial unpaid community development obligations after halting operations.
Another major concern raised by community members was the lack of transparency surrounding the calculation of mining companies’ gross annual revenues, which determine the amount due to communities. The audit found that affected communities were excluded from these processes and had little understanding of how revenue figures were derived.
Environmental issues also featured prominently in the findings. Community representatives expressed concern over increasing land degradation, water pollution and the failure of mining companies to rehabilitate mined-out areas. The report further criticized what it described as inadequate action by regulatory institutions in addressing these concerns.
The audit highlighted limited capacity among CDC executives and community members in financial management, procurement, record-keeping and project monitoring. According to the report, these weaknesses reduced communities’ ability to scrutinize financial transactions and effectively oversee development projects.
One of the most striking findings involved the Bauxite Community Development Committee, where the audit revealed that Sierra Mineral Holdings maintained control over the management and administration of development funds, while the CDC allegedly lacked access to key financial records.
The report further found that irregular payments by some mining companies, combined with poor planning, had led to the abandonment of several community development projects. Among them were a proposed 100-bed hospital in Upper Banta Chiefdom, Moyamba District, and a community health centre and staff quarters project in Nimikoro Chiefdom, Kono District.
The audit also noted limited engagement between mining companies, CDCs and community residents, resulting in poor information sharing and weak public awareness of development funding and projects.
Speaking on behalf of NMJD, Communications Lead Sallieu Kamara outlined a series of recommendations aimed at addressing the identified challenges.
Among the proposals are a review of mining legislation to strengthen enforcement of community benefit obligations, enhanced training and mentoring for CDC executives, and the establishment of independent community monitoring groups to track mining revenue transfers and spending.
The report also recommends participatory budgeting processes that allow residents to openly discuss and prioritise development projects, the creation of accessible reporting mechanisms for suspected misuse of funds, and mandatory public disclosure of CDC financial records by the National Minerals Agency.
Additionally, the audit calls for regular town hall meetings involving mining companies, communities, CDCs and government agencies to improve information sharing and enhance accountability.
NMJD stressed that the social audit was not intended to undermine government or mining companies but rather to promote transparency, strengthen public trust and ensure that mining revenues deliver tangible benefits to the communities whose resources drive the industry.
The organisation argued that while mining remains a vital contributor to Sierra Leone’s economy, communities hosting mining operations must see meaningful improvements in infrastructure, healthcare, education and livelihoods if the sector is to fulfil its development promise.
