On payment voucher No. 2 of June 2021, the sum of N15,086,880 was paid to GEOBAMS and associates of suit FF13, 1st floor pacific complex, Onitsha for the creation of 50m buffer on each side of the road leading to the Airport at Nteje. Taxes were not deducted from this transaction as it was disguised as direct labour.
The applicable taxes were 5% VAT (as at time of transaction), 5% withholding Tax and 2.5% state development tax which cumulatively amounted to N1,885,860. It is emphasized that it is not within the authority of any state officials to grant tax waiver to any contractor. Therefore, it runs contrary to extant treasury circulars and provisions of the financial regulations for the tax granted to GEOBAMS and associates. If the state government intended a direct labour execution of its jobs it has state Ministries with competence in the core areas to engage. In the instant case, the ministry of works possesses the requisite manpower and skills.
The permanent secretary was requested to obtain the explanations of the head of accounts as to why the accounts department ignored to deduct taxes due in the transaction.
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