In a landmark ruling this week at the Magistrate Court in Freetown, the National Social Security and Insurance Trust (NASSIT) secured a major victory in its long-running prosecution against Accord Logistics Ltd and its Chief Executive Officer, Johny Koussa, for failure to remit statutory social security contributions.
The Honourable Magistrate found the defendants guilty under Section 32(1)(c) of the National Social Security and Insurance Trust Act No. 5 of 2001, rejecting the defence’s argument that the Joint Venture Agreement (JVA) dated 28 June 2021ratified by Parliament on 8 February 2022 lawfully limited their liability to Le 245,843 for the period up to February 2022.
The Magistrate held that the NASSIT Act is specific and mandatory legislation governing social security contributions. Its provisions take precedence over any inconsistent term in the JVA, even if the agreement was ratified by Parliament.
The figure of Le 245,843 stated in Clause 11(2)(e) of the JVA was never verified or audited by NASSIT inspectors as required under Section 58 of the Act. Consequently, it could not bind the Trust or reduce the independently determined liability.
The total principal, interest, and penalties for the period February 2018 to April 2023 amount to Le 609,345.75, which the defendants must pay in full.
Under Section 27 of the NASSIT Act, the imposition of interest and penalties for delayed payment is mandatory. No statutory or equitable discretion exists to waive these charges in the circumstances of this case.
The Magistrate granted all reliefs sought by NASSIT, ordering conviction of Accord Logistics Ltd and Johny Koussa under Section 32(1)(c) of the NASSIT Act.
Full payment of the verified arrears, interest, and penalties totaling Le 609,345.75.
Payment of all accrued interest and penalties, to be calculated by NASSIT from the due dates of each monthly contribution up to the date of actual payment.
Sentencing of the defendants to 4 years’ imprisonment or the option to pay a fine of Le 4,000.
The judgment was delivered by Justice Sahr Kekura, J (presiding Magistrate) and read in court by Magistrate Mustapha Brima-Jah, the current Principal Magistrate.
NASSIT was represented by U.D. Farakhan Sesay (Lead Counsel), M. Mitchell Conteh and I.M. Koroma.
Defendants’ legal team included M. Forde, T. Fewry and C. Botchway.
This ruling underscores the enforceability of statutory obligations under the NASSIT Act, reaffirming that contractual arrangements cannot override mandatory social security contributions in Sierra Leone.