The National Assembly’s Finance and Public Accounts Committee (FPAC) has directed the Department of Geology to take immediate steps to recover D4,875,062.51 in outstanding black sand mining royalties owed to the Government of The Gambia by GACH Mining Company.
The directive follows an examination of reports by the Auditor General, which pointed out irregularities in royalty payments by the mining firm during the period under review.
FPAC’s findings showed that GACH Mining exported 621 containers of black sand, equivalent to 18,494.53 tonnes. Under the agreement between the company and the government, the state is entitled to 60 percent of the proceeds from the exports, which amounts to $832,253.85.
However, a review of bank records revealed that only $739,818.08 had been paid to the government in royalties, leaving an outstanding balance of $92,435.77, equivalent to D4,875,062.51.
In response, the committee instructed the Department of Geology to engage with GACH Mining Company and ensure that the outstanding amount is paid within 45 days of the report being tabled before the National Assembly.
“The committee recommends the Geological Department engage GACH Mining Company to settle the outstanding balance to the government in line with the agreement and details furnished to FPAC for verification within 45 days after the tabling of the report,” the committee stated in its report.
FPAC also requested that the Department of Geology submit the contractual agreement between the Government of The Gambia and GACH Mining Company for review and verification within the same 45-day period.
In addition to concerns over unpaid royalties, the committee raised questions about the management of royalty rates in the mining sector. FPAC reported that it found no documentary evidence indicating that black sand mining royalty tariffs had been formally approved by the relevant authorities.
The committee warned that the absence of an approved tariff framework had resulted in inconsistencies in the application of royalty rates.
“The committee noted a lack of evidence for approval of royalty rates, resulting in inconsistent rates being applied,” the report stated.
To address the issue, FPAC recommended that the Department of Geology work closely with its supervising ministry to ensure that all royalty tariffs for sand mining operations receive the necessary approvals from the appropriate authorities. The committee said such measures would help eliminate discretionary rate-setting practices and strengthen transparency, accountability, and revenue collection in the management of the country’s mineral resources.
Furthermore, FPAC directed the Department of Geology to provide documentary evidence of the approved royalty tariff framework within 60 days after the report is tabled before lawmakers.
The committee stressed the vital role of proper oversight and adequate regulatory controls in the ongoing struggle to safeguard public revenue and to guarantee that the exploitation of the nation’s natural resources benefits the Gambian people to the fullest possible extent.
