By Nasratu Kargbo
According to findings revealed in the Auditor General’s Report, Electricity Distribution and Supply Authority (EDSA) has not been paying Good and Services Tax (GST) to the National Revenue Authority (NRA), promptinghe Chairman of the Public Accounts Committee in Parliament Segepoh Solomon Thomas to rule that EDSA resolves the issue with NRA.
Speaking during a public hearing on the Auditor General’s Report on the on the 22nd January 2024, Thomas said “Within fourteen days you should have this issue resolved with the NRA, and you should produce evidence of that resolution, otherwise EDSA will pay”.
He said MDAs are invited to respond to serious issues raised in the report regarding their institutions, vowing they will not tolerate excuses.
“WE are not going to take lightly the Auditor General’s Report this year, we want to ensure that all those that are found culpable are brought to book” he said.
EDSA is required by law to ensure all Goods and Services Tax (GST) usually taken from tokens purchased by customers are transferred to NRA.
Deputy Leader of Opposition 2 Aaron A. Koroma said: “It is incumbent on you to pass on that GST over to NRA. You do not have the power to withhold or retain what you have deducted as withholding tax on behalf of NRA”.
He said going forward, if they intend to offset the monies, they should ensure they have a policy with the stakeholders involved. Koroma explained that in such case government must have done some quantification on how much they owe EDSA that they should defray through GST.
The Deputy Leader of Government Business said when the masses purchase their EDSA token, he believes that per any purchase there is a percentage for GST and IPPs and that they should have done their calculations.
“What you are simply telling us is, all that we are paying that should go to the IPPs and the GST is what you are collecting now and paying to the IPPs? And government is losing, how do you expect government to pay you for their MDAs, they cannot pay if they do not have money” he asked.
Chief Finance Officer at EDSA Mustapha Sannoh explained that if they pay all the GST, they will not be able to pay Independent Power Providers (IPPs) which will lead them to shutting down their systems. He explained that if they pay the full GST they will not be able to pay the IPP, which will make it difficult for the power providers to generate electricity.
He said the monies they spend buying power outweighs the profit.
The 2022 AG’s report states that EDSA is to pay NRA a GST of forty-four million five hundred and ninety-eight thousand, six hundred and fourteen Leones (44, 598,614.89).
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