When the Taxman Comes Knocking: NaFAA Faces Legal Trouble Over Withheld Funds

By: Alphanso G. Kalama
Email: alphansokalama@gmail.com

The Liberia Revenue Authority (LRA) has filed a lawsuit against the National Fisheries and Aquaculture Authority (NaFAA) for allegedly failing to pay budgetary contributions and income taxes deducted from employee wages. NaFAA was expected to contribute US$1,569,888 to the national budget for the current fiscal year, including US$69,888 in taxes that should have been forwarded to the government as required by Liberian law.

Despite numerous formal communications and phone calls from the LRA and the Ministry of Justice, NaFAA is reported to have disregarded these reminders, leading the LRA to seek legal redress in the Tax Court at the Temple of Justice. In addition to NaFAA’s issue, the National Port Authority (NPA) has also been accused of not remitting approximately US$5 million to the government.

Mr. Lewis Konoe, NaFAA’s Director of Communications, in response to media inquiry from The People Newspapers regarding the LRA’s legal stance against NaFA, he noted that the situation is not to his attention, contrary to what some media institutions are reporting that He Director Konoe acknowledged the Lawsuit against them.

The LRA’s legal actions are based on several sections of the Liberia Revenue Code, which mandates the recovery of unpaid taxes, including those owed by state-owned enterprises like NaFAA. The 2024 Budget Law further grants the LRA the authority to review and garnish funds from internal revenue accounts of such entities if they fail to comply.

Danicius Kaihenneh Sengbeh, LRA’s Manager for Communication, Media, and Public Affairs, confirmed the lawsuit, emphasizing the LRA’s commitment to collecting lawful taxes. He noted that while he is cautious about discussing the case in detail due to his non-legal background, the LRA’s legal team is actively pursuing the recovery of the taxes owed to the people of Liberia.

courtesy: The Liberia Investigator

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