The document discusses local revenue administration in Sierra Leone and the role of traditional authorities. It outlines the legal provisions and current practices, and challenges including misinterpretation of laws and unclear stakeholder roles. Non-profits piloted reforms in two districts that improved revenue collection by establishing committees, documenting processes, and creating action plans with timelines. However, the interventions lacked sustainability due to inadequate monitoring, lack of council ownership, and changes between governments.

1. LOCAL REVENUE ADMINISTRATION IN
SIERRA LEONE– THE ROLE OF
TRADITIONAL AUTHORITIES
Adams Tommy
Project Manager,
Public Financial Management Project
(PFMP),
Ministry of Finance
PhD Candidate, Tax Policy, University of
Pretoria

2. OUTLINE
Introduction
The legal provisions on local revenue
administration
Current implementation practices in local
revenue administration
Challenges in local revenue administration
Prospects for reforms local revenue
administration

3. Introduction
 Establishment of decentralization- reestablishment
of decentralisation in 2004
 Financing of local councils – grants for devolved
functions, local revenues and services delegated by
government ministries
 Responsibilities of local councils and local councils
 Section 28 of LGA 2004
 Section 20(1) of LGA 2004
 Section 57 of the LGA 2004
 Section 58 of the LGA 2004
 Section 59(1) of the LGA 2004
 Section 60 of the LGA 2004

4.  Current implementation practices of local revenues
 Administration of local tax and market dues include
 assessment, printing, distribution, collection and reporting
– key stakeholders have specific roles in the process
 Challenges in local tax administration
 Mis-interpretation by local council councillors of Section 20(1)
of LGA 2004
 Different signals sent by ministry responsible for local
government
 Untimely and inadequate budgetary provision for printing
receipt books
 No clearly defines roles of stakeholders
 Inadequate assessment methods and non payment of rebates
etc
 Market dues.. defining ownership
 Low collection and reporting of market dues

5.  Prospects for reforming local revenues administration
 Local tax
 ENCISS and Fambul Tok, (local NGOs) funded by DfID/EU have
been working with stakeholders in Kailahun and Koinadugu
districts to improve on their local tax collection and reporting. The
following processes were adopted
 Held meetings with stakeholders on the need to collaboratively
improve on local tax collection
 Establish a committee comprising key stakeholders of both the
local councils, traditional authorities, District Officers etc
 Develop TOR for the committee
 Document the processes involved in the administration of local
tax (assessment, printing, distribution, payment/collection,
banking etc) including the specific roles of key stakeholders in the
processes
 Identify the bottlenecks in local tax administration

6.  Apportion the challenges to each of the key
stakeholders concerned in the administration of local tax
 Develop an action plan of key activities on how to
improve systems and processes in local tax
administration including specific timelines and steps for
implementing the plan
 Prepare MOU for the signatories of key stakeholders
(Paramount Chief, Chairmen of councils etc) to own up
achievement of the deliverables in the action plan
 Monitor implementation on the action plan as per the
timelines stipulated in the plan
 Report quarterly on status of implementation of the
action plan

7.  Local revenue performance before and after intervention
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
millionUS
Local revenues, 2005-2017

8.  Local revenues, 2005-2017
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
millionLeones
Local revenues
Kailahun dist
Koinadugu dist

9.  Local tax, 2005-2017
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Trends in local tax, Koinadugu dist
Before the intervention (ENCISS/Fambul TOK)
After intervention

10. 0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
millionLeones
Trends in local tax, Kailahun dist
After
Before intervention

11.  Lessons learnt
 The interventions in the 2 local councils (Koinadugu
and Kailahun districts) were not sustainable
 Inadequate M&E framework to monitor and sustain
the gains made in revenue collection and reporting
 No ownership of the specific interventions by the
beneficiary councils
 Change of governments is likely to bring out changes
in specific programmes implemented by NGOs in
local council jurisdictions