An independent investigation by the Calabash Newspaper has revealed that the Sierra Leone Civil Aviation Authority (SLCAA) is facing significant financial strain linked to more than NLe 20 billion in operational funds that remain un-transferred, as well as discrepancies in its Pay-As-You-Earn (PAYE) tax records with the National Revenue Authority (NRA).

The findings follow a recent audit which examined the Authority’s PAYE obligations for the 2023 financial year. According to documents reviewed during the investigation, the SLCAA recorded its PAYE liability at NLe 5,263,731.41. However, auditors recalculated the correct amount to be NLe 5,567,935.03, creating a variance of NLe 304,203.62.

The audit further identified an outstanding PAYE-related balance of NLe 2,520,146.55. Auditors also 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 a statutory tax deducted directly from employees’ salaries and must be paid to the NRA in accordance with the law. Any discrepancy in calculation, remittance or documentation typically raises compliance concerns.

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However, the Calabash Newspaper investigation indicates that the discrepancies are largely connected to long-standing funding constraints rather than deliberate non-compliance.

Sources and financial records reviewed show that under the Government’s Treasury Single Account system, all revenue generated by the SLCAA is first collected by the NRA and paid into a central government account. From that pool, 80 percent of the Authority’s revenue is expected to be transferred back to it for operational use.

Financial sources close to the matter disclosed that these transfers have not 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. The funding delays have reportedly created cash flow challenges, affecting the timing of certain statutory payments, including PAYE remittances.

Despite the financial strain, the investigation found no evidence that the SLCAA failed to deduct PAYE from staff salaries. Instead, the issue appears to relate to reconciliation gaps, documentation shortfalls and the timing of remittances.

Internal handover notes reviewed during the investigation further show that some of the tax liabilities referenced in the audit date back to previous financial periods. According to finance department sources, certain exposures were inherited from earlier administrations and carried forward, suggesting that the discrepancies are part of a broader historical issue rather than a recent development.

Sources within the SLCAA finance department confirmed that a reconciliation exercise has 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 ongoing to compile and submit supporting documentation to the NRA.

The outstanding NLe 2,520,146.55 balance has been incorporated into a broader reconciliation plan. Financial experts familiar with the matter say potential solutions could include direct payments or legally approved arrangements to offset tax liabilities against funds owed to the Authority.

The SLCAA plays a central role in regulating aviation safety and ensuring compliance with international standards. Despite the financial constraints outlined in the audit and subsequent investigation, there is no indication that aviation safety standards have been compromised.

The findings underscore the need for stronger coordination between revenue-collecting institutions and agencies that depend on timely fund transfers for operations. They also highlight the importance of consistent documentation and routine reconciliation in public financial management.

Overall, the investigation concludes that the SLCAA’s PAYE challenges stem primarily from systemic funding gaps and inherited liabilities rather than intentional wrongdoing, with corrective measures currently underway to address the discrepancies.