By Nasratu Kargbo
The latest 2022 national audit report shows that Government lost a total revenue of NLe38, 226, 990 million.
According to the report, these monies were lost due to non-compliance with clauses in contract agreements between some companies and various Ministries, Department and Agencies (MDAs).
Explaining significant findings made by the Audit Service Sierra Leone, the Audit report that was published in December 2023 further explains that those unpaid balances were not part of the domestic arrears disclosed in the financial statements.
Highlighting specifics on amount of monies not paid by some MDAs, the report states - Immigration Department 429,627 United State Dollars, Ministry of Agriculture and Food Security- 19,464,733 Leones, Ministry of Youth Affairs 2,241,965 Leones, Ministry of Finance and National Commission for Privatisation 367,172 Leones.
Some MDAs had monies unpaid both in US dollar and Leone. The Ministry of Development and Economic Planning’s was to pay 182,500 Leones and 5,000USD,whilst monies lost via the Ministry of Lands, Housing and Country Planning amounted to 456,000Leones and 50,000 USD.
Other findings stated that transit banks are expected to transfer revenues collected into the Consolidated Fund account at the Bank of Sierra Leone (BSL) within 24 hours upon receipt.
But the reports states that Sierra Leone Commercial Bank made a transfer that amounted to 3,565,919 Leones regarding income tax revenue collected during 2022 to the BSL.“We however could not trace this transfer in the Income Tax accounts held at the BSL”, the report states.
The Audit service in their report applauded the National Revenue Authority (NRA) for the strides made in revenue generation, but quickly noted that despite measures undertaken to improve revenue generation performance, there were gaps in certain areas such as revenue assessment, collection, and reporting.
“These gaps could be attributed mainly to the failure of the NRA to collect tax revenue and apply penalties and sanctions against defaulters,”a part of the report reads.
Copyright © 2023 Politico (14/01/24)
