Gambiaj.com – (BANJUL, The Gambia) – The Commission of Inquiry into the financial mismanagement of the Kanifing Municipal Council (KMC) has revealed significant concerns about the “Mbalit” Project, including overestimated truck costs, a lack of transparency from Agib Bank, and bribery allegations linked to senior officials.

Overestimated Costs and Unviable Arrangements

Sainabou Martin-Sonko, the former CEO of the KMC, testified that the trucks purchased for the “Mbalit” Project were overvalued. “The cost of the trucks was D3.5 million, but for the KMC, they purchased it at D5 million,” she disclosed. Despite the advice from the Ministry of Local Government and Lands to involve the Ministry of Finance’s Public-Private Partnership Unit to assess the project’s viability, the council proceeded independently.

Additionally, more than half of the “Mbalit” trucks were insured by Takaful Insurance, a company linked to the Mayor’s family, raising questions about conflict of interest.

The trucks, purchased through Espace Motors, failed to generate enough revenue to sustain repayments. Martin-Sonko revealed that while the trucks earned D700,000 to D800,000 monthly, the KMC’s repayment obligations stood at D3 million per month. This shortfall forced the council to allocate D40 million annually from its main account for loan repayments, a decision Martin-Sonko described as “uncomfortable.”

The Agib Bank, which funded the truck purchase, froze the KMC’s accounts due to defaults, compounding the council’s financial woes. Notably, the only collateral for the loan was the trucks themselves, which proved insufficient as a security measure.

Agib Bank’s Lack of Scrutiny

Ousainou Jallow, Agib Bank’s head of operations, admitted under questioning that the bank did not thoroughly scrutinize the loan scheme to assess its feasibility. “I don’t know whether the bank has actually scrutinized the ‘Mbalit’ loan scheme,” he stated, adding that Espace Motors authorized the bank to deal directly with the KMC.

Jallow requested more time to produce documentation from Espace Motors indicating the trucks’ costs and the projected profits. His inability to provide immediate clarity underscored concerns about the bank’s role in the project’s financial management.

Allegations of Bribery, Irregularities and Procurement Breaches

The hearing also addressed allegations of bribery involving senior KMC officials. Alieu Danso, a businessman and operator of Almot Real Estate Company, claimed that Baboucar Sanyang, a KMC employee, demanded D1 million to facilitate a D4 million payment. Danso, however, denied that Martin-Sonko personally solicited the bribe. Instead, he admitted giving her D30,000 as a personal loan before a trip to Senegal, which she reportedly assured him she would repay.

Martin-Sonko’s testimony included accusations of deleted financial records worth over D297,000, which Njie, a former deputy finance director, linked to unbanked receipts. Although Martin-Sonko referred the issue to the KMC’s Establishment and Appointment Committee, she admitted under questioning that no resolution was reached during her tenure.

The hearing also brought attention to procurement irregularities during the KMC’s COVID-19 relief efforts. Martin-Sonko testified that Mayor Talib Bensouda’s brother, lawyer Abdul Aziz Bensouda, negotiated the procurement of 300 bags of rice on behalf of the council using donated funds. She acknowledged that procurement rules were disregarded in the transaction.

Unresolved Questions and Accountability

The revelations of financial overestimation, lack of transparency, and alleged corruption have sparked calls for greater accountability at the KMC. Despite Martin-Sonko’s claims that she was waiting for committee decisions on several unresolved matters, Lead Counsel Patrick Gomez criticized the inaction. “Seven months was enough time to address the issue,” he said, emphasizing the need for active measures by both the CEO and the Mayor.

As the hearings continue, the Commission is expected to delve deeper into the financial mismanagement of the KMC, including the role of key stakeholders like Agib Bank and Espace Motors, as well as the council’s failure to ensure due diligence in its operations.