Aviation Authority (SLCAA) finances, significant discrepancies have been uncovered in the Public Accounts Committee (PAC) report, which scrutinizes the Auditor General’s findings for the financial year 2023. This report, presented by Hon. Ibrahim Tawa Conteh, Deputy Speaker and Chairman of the PAC, has raised serious concerns about revenue management, tax compliance, and overall financial governance within the SLCAA.
A key finding in the audit reveals that there was a glaring failure in revenue reconciliation practices. During the verification process, it was established that a total revenue of NLe157,104,530.86 was deposited into the SLCAA’s revenue account. According to the stipulated 80% sharing ratio, NLe125,683,625 should have been transferred to the authority’s operational account. However, only NLe96,906,456 was transferred, leading to a shortfall of NLe28,777,169.
The PAC’s investigation highlighted several critical issues affecting this revenue transfer. It noted that Section 32(2)(a-c) of the Civil Aviation Act, 2023, outlines the revenue-sharing ratio, yet the authority’s revenue account at the Bank of Sierra Leone is under the control `of the National Revenue Authority (NRA). The NRA has reportedly failed to inform the SLCAA about the funds transferred to this account, complicating reconciliations and severely impacting the authority’s operations.
To address these issues, the PAC has recommended immediate action from the Director General of the SLCAA to recover the missing NLe28,777,169 and provide evidence of this action to the Auditor General for verification. Moreover, the committee stressed the importance of conducting regular reconciliations to swiftly identify and report any discrepancies to the NRA and other financial authorities. Furthermore, it advised the management to undertake a thorough assessment of the authority’s revenue streams to enhance future performance.
The audit also pointed out that withholding taxes amounting to NLe454,795.28 were not deducted from payments to suppliers. Additionally, although some withholding taxes totaling NLe255,354.10 were withheld, the corresponding payment evidence to the NRA was not provided during the audit.
The PAC recognized that financial constraints had prompted the SLCAA to negotiate a payment plan with the NRA. As part of its recommendations, the committee urged strict adherence to this plan and compliance with Section 130 of the Income Tax Act, 2000. Any failure to comply could invoke severe penalties under Section 129(1) of the same Act.
Another significant concern raised by the audit was the incorrect computation and non-payment of Pay-As-You-Earn (PAYE) taxes. The report indicated that PAYE taxes amounting to NLe893,372.08 were not deducted from staff leave allowances. Furthermore, the authority applied a withholding rate of only 5.5% for PAYE taxes instead of following the established thresholds defined in the Income Tax Act and Finance Act.
The audit team calculated that the SLCAA owed the NRA a staggering NLe2,520,146.55 in outstanding PAYE taxes for the reviewed period. Additionally, discrepancies were found in the PAYE taxes recorded, with the authority reporting NLe5,263,731.41 instead of the correct figure of NLe5,567,935.03, without providing evidence of the payment for the latter amount.
To resolve these discrepancies, the PAC emphasized the necessity for both the SLCAA and the NRA to engage in cross-debt settlement arrangements in accordance with Section 54(1) of the Public Financial Management Act, 2016. This approach could mitigate some of the outstanding balances and promote better financial coordination between the two institutions.
Finally, the audit indicated that while foreign travel tax revenues totaling NLe50,472,398.06 were reported in the financial statements, the necessary assessment records for foreign travel tax transactions in the Integrated Tax Administration System (ITAS) were not submitted for review. This lack of documentation raised questions about the accuracy and completeness of the reported figures.
However, following the review of the assessment records by the PAC, the committee was able to confirm the accuracy of the reported figures and subsequently recommended resolving the audit query, suggesting that it be removed from the Auditor General’s Report altogether.
The findings of the Public Accounts Committee paint a troubling picture of financial mismanagement within the Sierra Leone Civil Aviation Authority. These discrepancies raise critical concerns over accountability, transparency, and compliance with financial regulations. Moving forward, the PAC’s recommendations highlight the need for rigorous financial oversight, adherence to tax regulations, and improved communication between the SLCAA and the NRA to ensure the smooth operation of the authority
