The Sierra Leone Extractive Industry Transparency Initiative (SLEITI), yesterday, disclosed three years of audit reports on the mining and extractive sectors highlighting discrepancies and a lack of compliance.
According to the SLEITI National Coordinator, Mina Horace, the audit focused on reports from 2012, 2013 and 2014. She said the report focused on mining, oil and gas, for now. They have plans to move to the forestry and fisheries sectors as well. She said currently there are over 200 exploration and extractive companies operating in the country.
The objective of the report is to promote transparency and accountability, to strengthen government and company systems to reduce corruption and embezzlement.
She said the major challenge in the sector is capacity, which is required for MDA’s to regulate the extractive companies and monitor compliance.
According to her there was an absolute discrepancy of $8,663,742 USD and a net discrepancy $5,295,634 USD, which represents 16% of government receipts.
The report stated that government revenue receipts amounted to $53,130,184 USD and company payments of $47,834,555 USD. Unresolved discrepancy or a difference of $5,295,634 USD was obtained at the end of the exercise.
Compared to 2013, there were increases in the payment of mining and exploration licences, indicating potential increase in mining activities in subsequent years.
The oil and gas sector contributed 15% of the total government receipts, decreasing from 20% in 2013 whilst mineral royalty remains the highest contributor to government revenues, having occupied the same position in 2013, although its percentage contribution reduced from 62% in 2013 to 57% in 2014.
The impact of corporate tax is yet to be felt as its percentage contribution reduced from 2.07 in 2013 to 1.58 in 2014. It is important that all the necessary legislations regarding corporate tax, particularly on allowable deductions are properly laid down before companies exhaust their initial capital allowances and move into corporate tax payment positions.
By Saidu Bah
Twitter:@mohamedsaidubah
Friday January 20,2017