Former attorney-general Aiyaz Sayed-Khaiyum has testified that the Government did not pay tax for former supervisor of elections Mohammed Saneem, but reimbursed the $55,944.03 in tax that was overcharged by the Fijian Elections Office from the latter’s 2021 back pay.
He told the High Court, presided by Chief Justice Salesi Temo, that everyone was responsible for their own taxes, and in this situation the Government did not waive or exempt Mr Saneem from his tax responsibilities.
Mr Sayed-Khaiyum, who said he was unaware who drafted the two Deeds of Variations from the Office of the Solicitor-General (SG), recalled a brief discussion he had with Sharvada Sharma, the former SG, in 2022.
Mr Sayed-Khaiyum said Mr Sharma voiced concerns regarding Mr Saneem’s back pay in the first DoV, saying the former supervisor of elections would not receive the anticipated amount as it exceeded the threshold due to his salary of $350,000.
Mr Sayed-Khaiyum said he then suggested that Mr Sharma resolve this matter and ensure the decision of the Constitutional Offices Commission (COC) was upheld.
However, the court heard this was not the case because Mr Saneem’s 2021 back pay was calculated with a salary of $315,000 which is 10 per cent less, in line with the pay cut instituted for government ministers, MPs and Constitutional Office holders. This, Mr Sayed-Khaiyum said, was for “fairness” during the COVID-19 pandemic.
He stated that his role in both DoVs was minimal as he was only required to execute them, leaving the operational details to the Fijian Elections Office.
He said given that the power to execute the terms of conditions was delegated by the President, as per Mr Saneem’s appointment letter, he did not seek the approval of the President or the COC.
Mr Sharma explained that according to Mr Saneem’s tax withholding certificate, all required taxes had been paid.
In this case, Mr Saneem received a back pay of about $111,000, but was incorrectly taxed $110,000, instead of the correct amount of $67,000.
As a result, he was overtaxed by $55,944.03, which was subsequently reimbursed.
Both Mr Sharma and Mr Sayed-Khaiyum noted that there was an additional $12,000 in tax, the origin of which they did not know, as it was calculated by the FEO’s financial controller, Romika Sewak.
The trial continues on Monday.
