Gambiaj.com – (BANJUL, The Gambia) – The National Audit Office (NAO) has uncovered significant financial irregularities across several government ministries, departments, and projects, according to findings presented to the Finance and Public Accounts Committee (FPAC).
The revelations were made by Auditor General Mr. Cherno Amadou Sowe during FPAC’s review of the Government’s 2021–2024 financial statements. The committee is chaired by Hon. Alhagie Mbow.
Adverse Audit Opinion and Financial Misstatements
According to the audit report, the Government’s 2024 financial statements received an adverse audit opinion, with the NAO citing material misstatements across key financial areas, including payables, receivables, cash balances, and transit accounts.
The report highlighted a D1.34 million negative balance in payables, alongside a D2.9 billion overstatement of other payables due to misclassified transit accounts.
More than D1 billion in receivables was also misstated. In addition, unreconciled transactions dating back to 2019, amounting to over D1 billion, remain unresolved, while a D1.1 billion discrepancy was recorded between cashbook balances and cash equivalents.
Unapproved Works, Tax Breaches, and Contract Overruns
Presenting the findings, Mr. Sowe disclosed that six additional works valued at D7,426,148 were executed without approval from the Directorate of Public Procurement. Although 12 additional works were added to the original contract, auditors were only able to verify approval for half of them.
The audit also flagged the premature release of retention money. A 5 percent retention fee totalling D2,134,364 was paid nearly 11 months ahead of schedule.
Records show the payment was made on 5 February 2024, even though the certificate of completion was issued on 8 January 2024 and the retention was due 12 months later.
Several breaches relating to withholding tax were also identified. These included a D2.6 million payment to ICWARP for email platform subscriptions and consultancy payments exceeding D14.8 million, all of which were made without deducting the mandatory 15 percent withholding tax for non-resident service providers.
The NAO further documented delays and contractual lapses in major infrastructure projects. For the North Bank Road Block 2 project, the contract expired in April 2022 but continued without a valid extension. Meanwhile, the North Bank Road 1 project experienced a 22-month delay beyond its revised completion timeline. The NAO said explanations have been requested from project management.
Contractors Paid Beyond Approved Sums
A reconciliation exercise also revealed that contractors were paid D377,696,320 above approved contract sums. The audit recommended strict enforcement of contract ceilings and proper approval for any additional payments.
In addition, the report noted that D138.7 million in utility bills for ministries and departments were charged to the contingency fund, despite those institutions having approved budget allocations for utilities. The NAO stressed that contingency funds are intended for emergencies, not routine expenditure.
The audit also reviewed duty waivers and identified cases where approvals were granted to entities that did not meet eligibility criteria. The NAO recommended further review of these waivers and the possible recovery of lost revenue.
While acknowledging long-standing challenges in producing timely audited accounts, the NAO reported improved cooperation with the Ministry of Finance, the Accountant General’s Department, and other MDAs, which has helped clear previous audit backlogs.
FPAC Chair Hon. Alhagie Mbow said the committee will closely scrutinize the report and engage the relevant institutions, noting that the findings will inform further parliamentary oversight actions.
