By Amin Kef (Ranger)

An independent investigation conducted by this medium has examined recent audit findings concerning the Sierra Leone Civil Aviation Authority (SLCAA) and its Pay-As-You-Earn (PAYE) tax obligations to the National Revenue Authority (NRA). While the audit highlighted discrepancies in the computation and documentation of PAYE payments, our findings show that the situation is largely connected to legacy liabilities and long-standing financial constraints rather than deliberate wrongdoing.

According to documents reviewed, the SLCAA recorded its PAYE liability for the 2023 financial year at NLe 5,263,731.41. However, auditors recalculated the correct amount to be NLe 5,567,935.03, creating a difference of NLe 304,203.62. The audit also identified an outstanding PAYE-related balance of NLe 2,520,146.55. In addition, auditors stated that at the time of their review, there was no supporting documentation available to confirm that the full recalculated amount had been remitted to the NRA.

PAYE is tax deducted directly from employees’ salaries and must be paid to the NRA as required by law. Any difference in figures or delay in documentation naturally attracts attention. However, this investigation found that the SLCAA has been operating under significant financial pressure due to the structure of the Treasury Single Account (TSA) system.

Under this system, all revenue generated by the SLCAA is collected by the NRA and paid into the Government’s central account. From there, 80 percent of the funds are supposed to be transferred back to the Authority to support its operations. Financial records and sources close to the matter indicate that those transfers have not always been made consistently or on time. It is understood that more than NLe 20 billion in operational funds due to the SLCAA remain un-transferred.

This situation has reportedly created cash flow challenges for the Authority, affecting the timing of some payments, including statutory obligations. Despite those challenges, there is no evidence to suggest that the SLCAA failed to deduct PAYE from employees’ salaries. The issue appears to center on reconciliation, documentation and the timing of remittances.

Our investigation also shows that some of the liabilities mentioned in the audit date back to previous financial periods. Internal handover notes indicate that certain tax exposures were inherited from earlier administrations and have been carried forward over time. This suggests that the discrepancies are part of a broader historical issue rather than a new development.

Sources within the finance department confirmed that a reconciliation exercise has already been completed to address the 2023 variance. The Authority is expected to update its records to reflect the audited figure of NLe 5,567,935.03. Efforts are also underway to compile and submit supporting documentation to the relevant authorities.

The outstanding balance of NLe 2,520,146.55 has been included in a wider reconciliation plan. Financial experts say that possible solutions may involve direct payments or legally approved arrangements to offset tax liabilities against funds owed to the Authority.

It is important to note that the SLCAA plays a critical role in regulating aviation safety and ensuring compliance with international standards. The Authority requires stable funding to conduct inspections, training and oversight activities that protect passengers and maintain Sierra Leone’s aviation credibility. Despite the financial constraints identified, there is no indication that safety standards have been compromised.

This investigation highlights the need for stronger coordination between institutions responsible for revenue collection and those that depend on timely fund transfers. It also underscores the importance of proper documentation and regular reconciliation in public financial management.

Overall, the findings suggest that the challenges facing the SLCAA are rooted in systemic funding issues and historical liabilities rather than intentional non-compliance. With reconciliation efforts ongoing and corrective steps being taken, the Authority appears committed to resolving the discrepancies and strengthening its financial processes moving forward. https://thecalabashnewspaper.com/slcaas-paye-challenges-rooted-in-systemic-funding-gaps-rather-than-intentional-non-compliance-independent-investigation-reveals/