Loans and Trucks: KMC’s Financial Decisions Under Scrutiny as Former CEO Testifies

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Gambiaj.com – (BANJUL, The Gambia) – In ongoing investigations into the financial and administrative practices of the Kanifing Municipal Council (KMC), former Acting Chief Executive Officer (CEO) Jaja Cham has shed light on critical issues, including the issuance of loans and the procurement of 19 trucks under his leadership.

Jaja Cham, now serving as the Director of Administration at KMC, testified before a commission tasked with probing the council’s operations. Cham, who also served as acting CEO for a year and four months after the resignation of Salama Njie, was directly involved in several significant decisions during his tenure, including the purchase of trucks and the management of loan disbursements.

Loan Issuance Amid Council Resolution

One of the central points raised during Cham’s testimony was KMC’s policy on loan issuance. According to Cham, a council resolution had initially placed an embargo on loan distribution, barring the council from giving out loans. However, this restriction was later adjusted, allowing the CEO to exercise discretion in granting loans.

“The council initially had an embargo on loans,” Cham explained. “But later, the CEO was permitted to issue loans at their discretion.” Despite this discretion, Cham acknowledged that the process lacked transparency, and he was unable to provide specific details about the loans issued during his time in office. The commission has requested Cham to provide additional documentation on the loan transactions, including records of the loans granted and the criteria used for their issuance.

Truck Procurement: Questions on Costs and Process

Cham’s testimony also focused on the procurement of 19 trucks, a significant purchase made while he was acting CEO. The trucks were acquired through a partnership between KMC, ESPACE MOTORS, and AGIB Bank. Cham stated that he was involved in the procurement process but admitted that neither he nor the contracts committee knew the exact cost of the trucks in China, raising questions about the council’s due diligence.

There was an agreement with ESPACE MOTORS and AGIB Bank for the trucks’ procurement,” Cham testified. However, when pressed about the pricing and value for money, he acknowledged that the contracts committee, which was responsible for overseeing the procurement, was unaware of the trucks’ original cost in China. Cham maintained that, despite this gap in knowledge, he believed there was value for money in the deal.

The commission has requested Cham to provide detailed records on the truck procurement process, including contracts, cost breakdowns, and the decision-making process behind the agreement with ESPACE MOTORS and AGIB Bank.

Organizational Gaps and Financial Oversight

In addition to the loans and trucks, Cham’s testimony highlighted broader issues within KMC’s financial management. He noted that the council had several accounts with multiple banks as of 2018. During his time as acting CEO, he worked to streamline these accounts, reducing them to just three. Despite this effort, Cham admitted that not all banks responded to inquiries about the accounts KMC held, leaving some financial information unaccounted for.

Cham also addressed the internal audit processes at KMC, indicating that the council only began consistently producing internal audit reports in 2024. Previous audits, while conducted, lacked regularity and clarity, a point the commission flagged for further investigation.

Next Steps in the Inquiry

The commission has requested further documentation from Cham, including the details of the loans issued, the contracts related to the truck procurement, and the council’s internal audit reports. Cham has also been asked to provide information on KMC’s strategic plan, which was last updated in 2018, as well as additional records concerning the council’s financial operations and procurement processes.

As the inquiry continues, the spotlight remains on KMC’s administrative and financial decisions under Cham’s leadership, with the commission seeking greater transparency and accountability in the council’s operations.

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