The Budget Advocacy Network (BAN) has launched an initiative to track 34 unresolved revenue issues identified in Parliament's Public Accounts Committee (PAC) review of the 2023 Auditor-General's Report. BAN Coordinator Abu Bakar Kamara stated that the initiative aims to ensure public revenue owed to the government is collected and made available to support essential services such as education and healthcare. The review covered 133 queries, including 43 that remained unresolved, with 34 involving revenue-related issues requiring further action.
BAN's review identified five major areas of concern, including taxes and payroll deductions withheld but not remitted to the National Revenue Authority (NRA), unpaid fees, rents, and lease payments, revenue collected but not properly banked or reconciled, debts owed to public enterprises, and income missing from the national accounts. Significant amounts highlighted included NLe 938.9 million in outstanding electricity bills owed to the Electricity Distribution and Supply Authority (EDSA) and NLe 170.5 million in contract income reportedly not paid into the Consolidated Fund.
Other outstanding amounts included NLe 161.9 million in unverified interest on National Social Security and Insurance Trust (NASSIT) debenture loans, NLe 114.7 million in taxes owed to the government but omitted from the national accounts, and NLe 45.7 million in unpaid invoices issued by the National Communications Authority (NatCA) to telecommunications operators. Additionally, NLe 32.3 million in tractor lease payments was owed by 14 operators, and NLe 31.3 million in student fees was receivable by Ernest Bai Koroma University.
BAN also cited NLe 28.8 million in aviation revenue that should have been transferred to the Civil Aviation Authority and NLe 18.8 million in PAYE and withholding taxes reportedly not remitted by Guma Valley Water Company to the NRA. The PAC had helped recover NLe 12 million during its hearings, but several significant revenue issues remained unresolved. BAN has written to the institutions concerned to request updates on the implementation of the committee's recommendations.
One of the cases highlighted by BAN involved the non-payment of rent by private operators managing government-owned hotels, including Bintumani Conference Centre, New Brookfields Hotel, Lungi Hotel, and Hilltop Hotel. According to the findings, Hilltop Hotel alone owed US$600,000, while questions were also raised about lease approvals and the duration of some agreements. The review also found that 14 private businesses that received 279 tractors and 130 power tillers under a Ministry of Agriculture leasing arrangement had not made the required payments.
BAN further reported that performance bonds intended to secure the payments could not be located. Another issue involved 1,114 tonnes of rice donated by China for school feeding, which was reportedly sold to service providers. The findings cited outstanding payments, missing bags of rice, and concerns about a waiver granted by the Ministry of Finance. The PAC referred the matter to the Anti-Corruption Commission for investigation.
BAN Policy Officer Abu Bakar Tarawally presented the PAC's recommendations and timelines, which included directing relevant institutions to improve revenue reconciliation, disclose outstanding taxes, recover unpaid fees and debts, and strengthen compliance with financial regulations. BAN said it would continue engaging the institutions concerned and tracking progress on the PAC's recommendations to promote accountability and ensure that public revenue due to the state is properly collected, recorded, and used to support national development.
Key points
- The Budget Advocacy Network (BAN) has identified NLe 938.9 million in outstanding electricity bills owed to the Electricity Distribution and Supply Authority (EDSA) as part of millions of leones in unpaid taxes and unaccounted government revenue in Sierra Leone.
- BAN's review covered 133 queries, including 43 that remained unresolved, with 34 involving revenue-related issues requiring further action by relevant public institutions.
- The PAC's recommendations include requiring the Ministry of Finance and the NRA to account for taxes owed to the government in the national accounts and directing the Ministry of Tourism to follow up on unpaid hotel rents.
