Deputy Speaker Leads PAC to Recover Billions in Tax Arrears, Emphasizes Transparency
The Public Accounts Committee (PAC) of the Sierra Leone Parliament, under the leadership of Deputy Speaker Hon. Ibrahim Tawa Conteh, has announced a significant milestone in its ongoing efforts to recover tax arrears. On Friday, August 23, 2024, during a session held at the Kenema District Council, Hon. Conteh reported that the Committee had successfully recovered over 40 billion old leones in tax arrears within the last three months. These recoveries pertain to audit findings from the fiscal years 2021 and 2022, demonstrating the PAC’s commitment to enforcing financial accountability across the country.
Hon. Conteh detailed the PAC’s strategic focus on several critical tax areas, including Corporate Taxes, the Goods and Services Tax (GST), Pay-As-You-Earn (PAYE) taxes, and withholding taxes. These tax categories represent significant revenue streams for the government, and ensuring their proper collection is vital for the country’s fiscal health.
In particular, the Chairman highlighted the Committee’s efforts to recover outstanding GST payments. The PAC examined the cases of eleven major taxpayers who had accrued substantial GST arrears. In collaboration with the Ministry of Finance and the National Revenue Authority (NRA), the Committee conducted thorough inquiries into these cases. This collaborative approach proved highly effective, resulting in the recovery of over 30 billion old leones. Hon. Conteh emphasized that such cooperation between government bodies is essential for ensuring that all due taxes are collected and properly accounted for.
The PAC also turned its attention to the telecommunications sector, specifically targeting mobile network operators and internet service providers who had accrued significant tax debts. The Chairman reported that the Committee had recovered 10.5 billion old leones from these entities, which has been deposited into the Universal Access Development Fund. This fund is crucial for expanding telecommunications access across Sierra Leone, particularly in underserved rural areas. The recovery of these funds will support the government’s ongoing efforts to enhance digital connectivity and bridge the digital divide.
In addition to large corporations, the PAC also focused on small and medium-scale businesses, as well as micro-tax contributors. These entities collectively owed the state over 3.5 billion old leones. The Chairman reported that the PAC has already recovered more than one billion leones from these businesses, with many others entering into payment plans to settle their outstanding taxes. This initiative is part of the Committee’s broader strategy to ensure that businesses of all sizes contribute their fair share to the nation’s revenue.
Further extending its reach, the PAC investigated irregularities in transit accounts and machinery operations, leading to the recovery of substantial amounts. These funds have been deposited into the Consolidated Revenue Fund, reinforcing the government’s financial base and supporting its ability to fund essential public services.
The Chairman reiterated that the PAC Secretariat is actively sending correspondences to the NRA and other relevant agencies to address any remaining arrears. Additionally, the Committee is focused on settling inter-agency tax liabilities, ensuring that government entities themselves comply with tax obligations. This approach is intended to set an example of accountability and transparency across all levels of government.
Hon. Conteh assured the public that all recovered revenues have been properly deposited into the Consolidated Revenue Fund. The PAC Secretariat holds all necessary payment documentation, ensuring that every transaction is verifiable. This commitment to transparency is central to the PAC’s mission, as it seeks to build public trust and ensure that all government revenues are managed responsibly.
The Chairman issued a stern warning to all Ministries, Departments, and Agencies (MDAs), emphasizing the importance of operating within the legal framework and adhering to prescribed rules and regulations. He stressed that the PAC will hold any institution that owes the government accountable, ensuring that all public funds are recovered and utilized for the benefit of the nation.
Looking ahead, Hon. Conteh stated that the PAC will continue to engage with MDAs to raise awareness about its work and the importance of prudent public financial and fiscal management. The Committee is committed to providing training and support to ensure that government entities meet the highest standards of accountability and transparency. This proactive approach is aimed at preventing future financial discrepancies and fostering a culture of good governance.
The Chairman expressed his deep appreciation to his fellow Members of Parliament (MPs) for their unwavering support and dedication to promoting openness, transparency, and accountability in Sierra Leone’s governance. He also extended his gratitude to past Chairmen of the PAC, acknowledging their significant contributions to advancing financial accountability in the country. Their collective efforts have laid a strong foundation for the current Committee’s work, and Hon. Conteh is committed to building on this legacy.
As part of its ongoing mandate, the PAC is currently engaging with Local Councils across Sierra Leone, reviewing findings from the Auditor General’s Reports for the fiscal and financial years 2021 and 2022. These engagements are critical for addressing any financial irregularities at the local level and ensuring that public funds are managed effectively and transparently throughout the country.
In conclusion, Hon. Conteh reiterated the PAC’s unwavering commitment to recovering all missing funds for the state and ensuring that Sierra Leone’s financial integrity is upheld. The Committee’s work is far from finished, but its recent successes demonstrate that with persistence, transparency, and cooperation, significant progress can be made in strengthening the country’s financial governance.
