As the trial of Mayor Herbert A.G. Williams and others continues in the High Court, more names of government institutions have been revealed as defaulters on the National Social Security and Insurance Trust (NASSIT) list.
Under cross examination, Mr. Alphious Cole, Deputy Head of Government Operations disclosed that besides the Freetown City Council (FCC), there are other government institutions that are presently indebted in paying their employees NASSIT contributions including the other 13 Local Councils in the country.
Lawyer Yada Williams representing the fourth accused Arthur Kwesi John had requested the witness to read out some of the names of indebted institutions in the NASSIT defaulters list.
Mr. Cole read out the following: the Ministry of Finance and Economic Development has to pay the sum of three billion, two hundred and seventy-eight million, five hundred and sixty-seven thousand, five hundred and twenty seven Leones and ninety-seven cents (Le3,278,567,527.97); Ministry of Justice have to pay two hundred and seventy-one million, six hundred and ninety-four thousand and fifty-three Leones and fifteen cents (Le 271,694,53,15) among others on the list.
He maintained that he was aware of the fact that FCC informed him that their finance was in bad shape simply because they did not receive allocation from the Central Government, adding that the explanation was plausible to him, but was not aware that the other reason for the failure to pay was that the cleaning of Freetown had been devolved to FCC.
According to the witness, most of the defaulters on the list explained to NASSIT that they were unable to pay for their employees due to delay of subvention from the Central Government.
He added that NASSIT did not institute criminal or civil proceeding against any of the other Local Councils that are on the list.
Mr. Festus Dowu Thompson, supervisor for the Income Tax Department at the National Revenue Authority (NRA) disclosed that when they realized that there were arrears for FCC in relation to payment of their employees Pay As You Earn (PAYE) tax they sent a letter to inform them about their debt and later went to see them for further discussion and they entered into an agreement with a payment plan involving a member of the Debt Management Unit of NRA and Officers of FCC.
“Prior to the plan FCC made payment of forty three million six hundred and forty thousand nine hundred and seventy three Leones (Le43,640,973) for the period September 2009 to July 2010 as part payment as indicated in the document,” said Mr. Thompson.
The matter comes up again today
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