After reviewing the Banjul City Council’s (BCC) 2019 and 2020 audited financial statements and activity reports, the National Assembly’s Finance and Public Accounts Committee (FPAC) discovered extensive financial irregularities, inadequate record-keeping, and non-compliance with legal and accounting standards.
The results, which are presented in the most recent report from the FPAC, demonstrate that BCC did not comply with the National Assembly’s order to provide reliable financial statements for the 2019–2022 period by the deadlines. The majority of councils, including BCC, have not complied with this resolution, the committee observed.
The authenticity of revenue records was called into question when the committee found a number of unconfirmed General Tax Receipts (GTRs) that were not from the Gambia Printing and Publishing Corporation. Furthermore, it was discovered that GMD195,120 in cash collections from market ticket sales and canteen rents had been received but not deposited, indicating purposeful revenue suppression.
It was discovered that BCC lacked crucial accounting guidelines to direct the recognition of income and expenses. Due to the lack of a 2018 audit and the missing 2019 deposit confirmations, comparable numbers for 2019 were also considered unverifiable. Additionally, a proper cash book was not kept in compliance with regulatory standards, and financial statements were not supported by a general ledger.
The reliability of the financial statements was further compromised in 2019 and 2020 by the absence of monthly bank reconciliations. The scope of the financial review was further limited by the absence of important documents from the auditors, such as GTRs, individual collectors’ cash books, project reports, and committee meeting minutes.
An abattoir and market stores, two large construction projects that cost almost GMD2 million each, were discovered to be seriously unfinished. FPAC had denounced the practice of advancing the funds to council employees as imprests. The committee directed Director of Planning Katim Touray, Acting Finance Director Ebou Drammeh, and CEO Mustapha Batchilly to return the entire contract amount.
Additionally, the Council circumvented standard procedures, such as not hiring licensed valuers or auctioneers to dispose of assets, and de-aggregated procurement contracts. GMD200,000 in unsupported payments, including a COVID-19 relief grant to the Banjul Relief Initiative, and GMD394,276 in unbudgeted payments were made without the required paperwork or internal audit confirmation. A total of GMD4.5 million in additional payments were also made without the Internal Auditor’s approval.
Unpaid staff loans totaling GMD136,429 and non-staff loans totaling GMD40,000, some of which date back to 2013, were discovered by FPAC. Salary advances totaling GMD22,075 were still unpaid. It was discovered that the Council had not kept track of either the creditors’ or debtors’ control accounts.
Assets acquired in 2019 and 2020 were not entered into the Fixed Asset Register by the Council. When asset registers were available, they were missing important information like insurance policies and disposal details. The Committee also pointed out that the Council had purchased two software programs in 2019 for a total of GMD456,000, but they had never been put to use. Additionally emphasized were inadequate data protection measures, including the use of non-genuine software, shared folder access, the absence of external data backups, and the absence of a UPS for servers. The risks were increased by the Council’s server’s lack of cooling systems and physical security.
The lengthy acting appointments of important staff, the absence of minutes from Council and committee meetings, and the absence of IT training for employees were just a few of the many governance flaws mentioned. These were thought to be signs of more widespread institutional and managerial failings.
FPAC released more than 30 recommendations, urging:
- The prompt submission of any missing financial records and documents.
- Recovering unpaid loans and suppressed revenue.
- Compliance with accounting and procurement regulations.
- Sanctions for duty neglect against accountable officers.
- Installing authentic software and improving IT security.
The Committee warned that BCC would face legal and administrative repercussions, including referrals to law enforcement, if it did not comply with the various corrective actions within the allotted time frames of 30 to 60 days.
