Put simply, it means that tax
concessions, in the main, have not been approved
by law makers whose duty it is to give such
deals a legal tag and a true warning that when
such concessions are made at the whim and
caprices of individuals or groups without proper
oversight, this leads to corruption. This type
of corruption appears to be a money-spinner and
a directive issued it seems for the rat and his
operatives.
It started off even earlier over
that India rice scam when it was reported that a
huge duty waiver was granted to one of the
siblings of the rat who was made grand commander
of the order of the
rice from India and a deal
which up to the time of writing this piece
remains unexplained by all those involved, chief
among them - the rat and one Zainab Hawa Bangura.
Tax concessions are in
themselves not a bad idea for a country
recovering from the ravages of a war that left
the country in great developmental reverse, but
it must be stated that there's a limit to such
and that when done it must be in a manner
that benefits the country as an entity and not
line the pockets of individuals in charge of
ministries, state house and other government
outlets.
"Taxes raised
from companies and individuals fund key public
services needed to promote the welfare of the
population and reduce poverty. But tax
incentives granted by the government are a major
reason for Sierra Leone’s low tax revenues.
The
UN estimates that Least Developed Countries need
to raise at least 20 per cent of their GDP
through taxes to meet the Millennium Development
Goals by 2015. Yet Sierra Leone is way off this
target, currently raising only around 10.9 per
cent of GDP in taxes. The major tax incentives
provided by the government include exemptions on
customs duties and payments of the Goods and
Services Tax, along with reductions in the rate
of income tax payable by corporations, which are
being granted supposedly to attract foreign
investment.
A transparent tax system supports
good governance and the accountability of
policy-makers towards the public. But the
granting of special tax incentives in opaque
deals, at the discretion of individual
ministers, without public scrutiny, undermines
good governance and can increase the risk of
corruption. It is not suggested that any of the
companies mentioned in this report have been
involved in any illegitimate activity... In
Sierra Leone, parliament and the public lack
information about the tax incentives granted and
are usually not aware of the details until after
they have been agreed, and sometimes not even
then. It is currently impossible for elected
parliamentarians, the media and civil society to
scrutinise and debate these deals properly to
ensure that the country optimally benefits."
And
garnering much-needed revenue is one area the
government has to concentrate if it is to put a
halt to increasing budget deficits and if it is
to stop its begging bowl in hand mentality of
relying on donor funds while individuals
including the rat have been busy amassing
fortunes of disproportionate magnitude. The
report's summary notes
"Tax expenditures could instead
be spent on improving education and health
services, investing in agriculture – the
backbone of the economy – and in providing
social protection to vulnerable groups. It will
be impossible for the government to implement
its poverty reduction strategy, the Agenda for
Prosperity, without a large increase in revenue.
Yet, in 2011, the government spent more on tax
incentives than on its development priorities,
and in 2012 spent nearly as much on tax
incentives as on its development priorities. In
2012, tax expenditure amounted to an astonishing
59 per cent of the entire government budget. Put
another way, government tax expenditure in 2012
amounted to more than eight times the health
budget and seven times the education budget."
Kindly re-read the last line so that you can
grasp the enormity of what we see as a crime
against the people.
"Put another way, government tax expenditure in
2012 amounted to more than eight times the
health budget and seven times the education
budget"
Please read this section of
the report's summary for an understanding of the
deceptive nature of government pronouncements.
"There are three
major problems with government policy on tax
incentives.
First, too many tax incentives are
granted to individual companies at the
discretion of a very small number of ministers
and officials. Such a system can lead to an
increased risk of corruption and the possibility
that deals will be offered to companies that are
outside or go beyond national legislation. In
fact, Sierra Leone’s constitution requires tax
waivers to be approved by parliament.
Secondly,
related to this, transparency is extremely poor.
Many of the tax incentives are negotiated behind
closed doors between government and companies,
with no effective parliamentary or media
scrutiny. The government does not publish any
figures on total tax expenditure.
Thirdly, the
government has produced no solid economic
rationale for offering widespread tax incentives
in Sierra Leone."
We would again remind the nation
wreckers sailing under the flag of the rat that
one fine day, there will be initiated many hours
of reckoning that will reveal all that is done
in the dark as we witnessed in the wake of the
historic event of April 29, 1992 when the
autocratic, despotic and human rights abusing
citadel of the "Live Forever" APC was brought
down.
We predicted and we knew that if
given State House again, those who benefited
from twenty four years of misrule would still be
clamouring for the heads of those who dared to
boot them out of power.
We would again ask them to
re-read the revelations recorded in documents of
the Commissions of Inquiry instituted by the
National Provisional Ruling Council, the NPRC so
that they may know how the country was taken to
the cleaners during twenty four years of
thieving and undemocratic behaviour that made
corruption the core of governance in those
terrible days.
They should again read about the
section on one Michael Abdulai and the deal he
cut with the agencies running the Sierra Leone
Ports Authority.
They should read again the
battles between Finance Ministers and one
particular female deputy at the ministry over
the shape of the stamps that authorised duty
concessions to many business outlets.
Our message to the genuine
investor - please keep all your files in order
and ensure that you treat the people of Sierra
Leone as you would want your own nationals to be
treated in your own God-given country.
For those "investors" who
believe that they've never had it so good and
are engaged in corruption and behaving as a part
of the corrupt system, there will be a day of
reckoning when your role in the political
manipulations that deny the people their rights
will be laid bare and you will be ordered to
account to the people.
We would therefore urge you to
keep all records of transactions involving State
House, the various ministries intact so that the
people of Sierra Leone whose resources you are
so ruthlessly exploiting will actually see just
how far you played your part in the financial,
social and economic mismanagement of Sierra
Leone - and please do not forget too, your
contribution to the political campaigns of the
rat at State House who, we understand uses
foreign currencies as if they were the legal and
national currency of Sierra Leone.
Offshore bank accounts and
investments? The impoverished people of Sierra
Leone shall know all in the fullness of time.
For now another disciple of the
rat heading the Anti Corruption Commission, one
Joseph Fitzgerald Kamara refuses to see, with
blinders on, the unexplained wealth of his
political bosses.
We await the day when he will
account for his selective targeting of people
his bosses want disgraced and punished.