Saneem’s tax was calculated on his backpay and salary of $426,000 instead of his salary of $315,000 – Defence

The Financial Controller for the Fijian Elections Office, Romika Sewak says that former Supervisor of Elections Mohammed Saneem’s tax deduction was based on an amount of $426,000 which is his combined normal salary for the year and backpay for the period from 15th January to 31st December 2021.

Sewak, who is the third prosecution witness in Saneem and former Attorney General Aiyaz Sayed-Khaiyum’s abuse of office trial, disagreed with the defence that tax on his and backpay should not be calculated separately.

During cross-examination, defence counsel Devanesh Sharma argued that this should not have happened because the $426,000 consisted of the reduced pay of 10 percent during COVID-19, which amounted to $315,000, plus $111,235.17 as backpay.

Sharma explained that the $111,235.17 was backpay for the period from 15th January to 31st December 2021.

Sewak says an additional $111,840.73 in tax and $67,021.07 in ordinary tax were deducted, calculated on the $426,000 figure.

She states that the calculations were carried out in 2022, regardless of whether it was normal pay or backpay.

When asked how the calculation was done, Sewak replied that it was based on the second Deed of Variation, which she received in July 2022.

The Financial Controller says she and her team calculated the $55,944.03 tax reimbursement and were satisfied with it.

She also told the court that the former Elections Supervisor kept pressuring her about the backpay and questioned why such a large amount of tax had been deducted from his salary.

Sewak says this went on for a month and left her feeling demotivated, to the point that she hated coming to work.

Chief Justice Salesi Temo clarified that he only wanted to know about the $55,944.03 tax reimbursed to Saneem and not about other tax issues.

He says the issue was whether the additional clause in the second Deed of Variation was valid.

Defence counsel, Sharma also asked if Sewak had approached the then Manager Legal, Ana Mataiciwa for assistance to understand the second Deed of Variation.

She responded she did not because Saneem was standing next to her questioning when the backpay will be processed.

She also agreed that according to the additional clause in the second Deed of Variation, government will only pay any additional tax for Saneem in 2021 and nothing beyond that.

Sayed-Khaiyum and Saneem are charged with abuse of office and receiving a corrupt benefit, respectively, in 2022.

The trial continues on Monday.

It is alleged that Sayed-Khaiyum between June 30th and July 12th in 2022, whilst being the Acting Prime Minister, signed a Deed of Variation and Addendum between the Government and the then Supervisor of Elections, Mohammed Saneem and that the approval for the government to pay the taxes of Mohammed Saneem was done without the proper approval of the Constitutional Offices Commission and the President of Fiji.

It is alleged that between the 1st of June 2022 and the 31st of July 2022, while being employed as the Supervisor of Elections, Mohammed Saneem without lawful authority and reasonable excuse, asked for and obtained a benefit for himself, that is the approval and payment/waiver of tax of more than $55,000 that was charged on his back pay as a Supervisor of Elections.