NASSIT Wins Landmark Case Against Accord Logistics Over Unpaid Contributions

The National Social Security and Insurance Trust (NASSIT) has secured a landmark legal victory against Accord Logistics Ltd and its Chief Executive Officer, Johny Koussa, in a ruling that reinforces the supremacy of statutory law over private contracts.

The Freetown Magistrate Court ruled that the defendants must pay a total of Le 609,345.75 in outstanding contributions, accrued interest, and penalties, sending a strong message to employers nationwide about the non-negotiable nature of social security obligations.

The case stemmed from Accord Logistics’ failure to remit statutory social security contributions over several years. The company and its CEO argued that a Joint Venture Agreement (JVA), ratified by Parliament in 2022, limited their liability to Le 245,843 for contributions up to February 2022. They claimed this contractual cap exempted them from paying the full amount owed.

However, the court dismissed this argument, with Justice Sahr Kekura emphasizing that the NASSIT Act is a specific and overriding legislation designed to protect workers’ social security rights. The ruling clarified that contractual provisions, even those ratified by Parliament, cannot override mandatory statutory obligations. The court noted that the Le 245,843 figure in the JVA was never verified or audited by NASSIT inspectors, rendering it legally invalid as a cap on liability.

The total sum owed, covering arrears from February 2018 to April 2023, alongside interest and penalties, amounts to Le 609,345.75. Under Section 27 of the NASSIT Act, the court reaffirmed that interest and penalties are mandatory and cannot be waived or reduced.

The court ordered both Accord Logistics Ltd and CEO Johny Koussa to settle the full amount immediately and to pay all accrued interest and penalties calculated from the due dates of each contribution. Furthermore, the defendants face a sentence of four years’ imprisonment or a fine of Le 4,000 if they fail to comply.

NASSIT’s legal team, led by U.D. Farakhan Sesay, Esq., and supported by M. Mitchell Conteh, Esq., and I.M. Koroma, Esq., successfully argued the case. The defendants were represented by M. Forde, Esq., T. Fewry, Esq., and C. Botchway, Esq.

The judgment is being hailed as a significant milestone in the fight against social security defaulters, reinforcing the judiciary’s commitment to uphold the rule of law and safeguard workers’ rights. It underscores NASSIT’s unwavering stance that statutory social security obligations cannot be limited by private contracts and highlights the importance of employer compliance across Sierra Leone.