Gambiaj.com – (BANJUL, The Gambia) – The Public Accounts Committee (PAC) and the Public Enterprises Committee (PEC) on Tuesday questioned the Central Bank of The Gambia (CBG) over a non-disclosure flagged by the National Audit Office (NAO) concerning the sale of Megabank.
According to the 2023 audit report, an amount of D24,442,558.89, part of a total transaction value of D896,805,125.96, was not disclosed in the government’s financial statements. The omission prompted auditors to demand proper disclosure and supporting documentation from the Central Bank.
Appearing before the joint committees, CBG Governor Buah Saidy defended the transaction, insisting that Megabank was not sold at a loss. He stressed that the Central Bank’s mandate is not to sell banks for profit but to safeguard financial stability.
Saidy explained that Megabank had been distressed for years due to high levels of non-performing loans, making its disposal necessary to avert a potential crisis in the financial sector.
He confirmed that the bank was sold to KM Holdings for $15.25 million, with the proceeds deposited at the Federal Reserve Bank of New York.
Addressing the alleged “missing D24 million,” Saidy clarified that the amount represents a 2.5 percent commission paid to consulting firm DT Associates, totaling D23,031,187.10. He added that the remaining difference resulted from exchange-rate conversions.
Updated figures from the Central Bank, he said, show that D898,216,297 was transferred to the Consolidated Revenue Fund (CRF), slightly higher than the figure recorded in the government’s accounts.
Lawmakers requested a comprehensive written submission from the Central Bank, including the contract with DT Associates, all payment vouchers, SWIFT confirmations, and detailed exchange-rate calculations.
They also sought documentation related to a D650 million toxic assets fund established to remove Megabank’s bad loans from its balance sheet.
Saidy informed the committees that D60 million has so far been recovered from the toxic assets, while D20 million remains in the account.
Representing the NAO, Babucarr Jallow clarified that the audit query was strictly about the non-disclosure of the D24 million commission and not about whether Megabank was sold at a loss. He added that Megabank does not appear in the 2024 audit, as no related balances feature in that year’s financial statements.
The committees welcomed the Central Bank’s commitment to submit all outstanding documents next week, after which the matter will undergo final review.
