By Kadijatu Bangura, Reporter
An investigation by the Calabash Newspaper has unveiled significant financial challenges facing the Sierra Leone Civil Aviation Authority (SLCAA), associated with over NLe 20 billion in operational funds that remain untransferred. Additionally, discrepancies in the Authority’s Pay-As-You-Earn (PAYE) tax obligations to the National Revenue Authority (NRA) have surfaced.
The findings follow a recent audit of the SLCAA’s PAYE responsibilities for the 2023 financial year. Documentation reviewed indicates that the SLCAA initially reported its PAYE liability at NLe 5,263,731.41, while auditors recalculated this figure to be NLe 5,567,935.03, revealing a variance of NLe 304,203.62. The audit also highlighted an outstanding balance related to PAYE of *NLe 2,520,146.55. At the time of review, there was reportedly no supporting documentation confirming that the recalculated amount had been remitted to the NRA.
PAYE is a legal obligation, deducted directly from employees’ salaries and must be remitted to the NRA. Any discrepancies in remittance or documentation typically raise compliance concerns. However, the Calabash Newspaper investigation suggests that these issues are chiefly linked to long-standing funding deficits rather than intentional non-compliance.
According to sources familiar with the situation, under the Government’s Treasury Single Account system, all revenue generated by the SLCAA is collected by the NRA and deposited into a central government account. The expectation is that 80% of the SLCAA’s revenue will be returned for operational use. However, consistent and timely transfers have reportedly not been made, contributing to substantial cash flow challenges and hindering the timely remittance of PAYE.
Despite the financial strain, investigators found no evidence suggesting that the SLCAA failed to deduct PAYE from employee salaries. Instead, the issues appear to arise from gaps in reconciliation, documentation shortfalls, and delays in remittances. Internal notes indicate that some tax liabilities refer to earlier financial periods, pointing to historical issues inherited from prior administrations.
Sources within the SLCAA’s finance department have confirmed completion of a reconciliation exercise to resolve the noted variance for 2023, with plans to update records to reflect the audited figure. Efforts are ongoing to compile necessary documentation for submission to the NRA, integrating the outstanding PAYE balance into a broader reconciliation strategy.
As the SLCAA plays a crucial role in regulating aviation safety and ensuring compliance with international standards, the investigation concludes that the challenges related to PAYE stem from systemic funding gaps and inherited liabilities rather than intentional wrongdoing. Corrective measures are currently in progress to address the discrepancies, underscoring the need for improved coordination between revenue-collecting institutions and operational agencies.
For more information, contact Daily Scope Newspaper at dailyscopemedia@gmail.com.
