As evidence of tax fraud continues to pour in against the Leadway Chief Executive Officer, Babadi Kamara, the public calls on Sierra Leone’s graft agency, Anti-Corruption Commission (ACC) to investigate.
Swift investigation, but fair investigation is expected from the ACC, and evidence be brought within public about corruption in the timber industry.
The investigation must be directed at the Leadway Chief Executive Officer (CEO) who has been accused of corruption on a grand scale.
A pile of credible documents spoke about the corruption, witness are ready to cooperate with the ACC in terms of providing evidence, and to testify in court should the need arise.
A credible source in the timber industry has shown that Kamara has never paid the required 5.5% withholding tax which every business entity must pay to the country’s revenue collection agency, the National Revenue Authority.
Failure to pay 5.5% withholding tax constitutes one of the most serious violations of the country’s tax laws.
The law also requires that there must be an invoice at NRA for any tax collected that amounts to Le5M and above, and NRA receipts must be produced upon request for inspection to show the exact money collected.
“As a business entity that sells, buys or transacts in any other form, you have to declare to the NRA the withholding tax you have collected,” the source says.
It is further alleged that the Leadway CEO has never paid any 5.5% withholding tax for all the 20,000 containers he had shipped out of the country.
“We want to see the records,” the source demands “If Babadi Kamara’s business is genuine.”
Another allegation that warrants ACC’s intervention is that Leadway CEO has been collecting USD$7, 500 as tax instead of USD$2, 850 being the stipulated amount by government.
The collection of an inflated sum of money and the issuance of improper receipts may account for the reason the Leadway CEO would find it difficult and almost impossible to submit the documents.
The source also intimated this press that Leadway has never declared profit his company has earned between 2019 and 2020.
The public also demands that all the money earned from 100 companies must be declared for the public to know.
Leadway as a company legally incorporated is subject the laws of Sierra Leone equally like any other company.
Since the responsibility to collect tax was entrusted to him, the company claimed to have collected USD$54M, but the appropriate legal books are yet to be presented for examination.
As allegations continue to make headlines, the Leadway CEO cannot be reached for comments.
The public view holds that the foundation for corruption was built on the day Babadi Kamara was established as the sole agent to export timber out of Sierra Leone to other countries.
Considering strides made by the ACC in the campaign against corruption, most members of the public say it would not augur well if the ACC fails to probe the activities of Leadway in its tax collection drive.
The allegations have to do with tax stashed away in fraudulent and shaddy deals, quite a huge sum of money that should go into state coffers.
The law in its text is neutral and should also be neutral in effect, meaning there should be no sacred cows in the enforcement of the law on corruption.
A prominent legal luminary has argued that the tendency to be corrupt is inherent in every human being; it is only the application of the law that would produce a deterrent effect.
The ACC of recent times is known to have recovered huge sums of money from corrupt officials once at the helm of state governance.
Records show that the ACC Chief, Francis Ben Kaifallah was honourably crowned as head of Corruption Network in West Africa.
The honour bestowed on him has its root on the fierce but fair steps taken to root out corruption in Sierra Leone.
In the wake of corruption scandals against Babadi Kamara, hopes continue ride high that ACC would allow the bright shining light of the law to shine on the timber fraud.
The fraud which has generated the greatest hulabaloo in the timber industry has not shaken the walls of the enclave Leadway Company has found itself in.
The enclave is about the privileged status the company continues to enjoy at the expense of other companies.
Reason for such a privilege enjoyed by the Leadway CEO remains one of the hottest topics for discussion among the public.
Other timber exporters whose companies have been shut down have repeatedly called on government to reconsider its actions.
The call has bearings on the revenue lost, job opportunities missed and the attendant spiraling hardship that hits the timber industry.
Most timber owners have previously received valid trade certificates by the Ministry of Trade and Industry to actively take part in the timber industry.
But they were however stopped by government from carrying out their operations in the country.
The ban on the timber has brought great financial losses to the affected companies as they are not permitted to take timber out of the country.
A number of documents also seen by Nightwatch shows that a number of timber exporting companies: Banico Holdings Sierra Leone Ltd, BAHSCO HOLDINGS Ltd, Phoenix Investment Engineering Company Ltd and Nazadco Trading Company Ltd were legally registered entities to export timber out of the country.
Three documents that guaranteed the timber companies of a safe and secure environment for business were issue by the relevant authority, the Ministry of Trade.
In the exploitation and export of timber from Sierra Leone, the companies are subject to the same conditions:
The exporter should require further approval from the Ministry, the exporter be issued with a letter from the Ministry for the release of export containers before the ministry grants exception for proof of evidence.
The timber exporting companies accepted the conditions issued by the Ministry to enjoy a smooth and uninterrupted export of timber from Sierra Leone.
By the time the timber companies started their export, another document that was originated by Office of the Chief Minister cancelled the Ministry’s trade permits.
Office of the Chief Minister’s letters nullified the permits granted to the afore-mentioned companies by the trade Ministry.
Sufficient and proper reason for the cancellation, the source said, was never offered by Office of the Chief Minister.
All what the document says about the order and the money Leadway has made on behalf of government.
“I am directed by the Hon. Chief Minister to refer to the above subject matter, and to inform you that approval has not been granted for the timber companies to ship any form of processed timber and timber residue,” the document says.
Since the pronouncement of the ban, Leadway enjoys a complete monopoly power in the timber industry which creates a big opportunity for corruption.
No doubt, the corruption scandal is a fit case for the ACC.
The public anxiously wait to see the ACC’s response to the timber allegations.