By: Kebba AF Touray
According to Hon. Lamin J Sanneh, the Chairperson of the Public Enterprise Committee of the National Assembly (PEC), the Gambia Civil Aviation Authority (GCAA) has incurred a net loss of over two hundred and seventy-nine million Dalasi (D279 M). Hon. Sanneh said this at the National Assembly while tabling the report of the committee on the State-Owned Enterprises (SOEs) which was developed after their engagement with the National Audit Office (NAO). Considering ongoing concerns and liquidity status after computing the current ratio on currents assets, it is noted that current liabilities exceeded current assets by D1.331billion implying that the current assets account for only 10% of the current liabilities, and said this indicates a very poor liquidity situation of the Authority.
“Furthermore, the Auditors noted that as of 31st December 2019 and 2020, a net loss of D38.042 million and D241.098 million respectively, was incurred by the Authority which is a 533.7% loss increased from 2019 to 2020,” he said.
The two reported net losses when calculated will give a total net loss of over two hundred and seventy-nine million Dalasi (D279 Million). He told his colleagues that the Committee recommends that the Board and Government through the Ministry of Finance, make a comprehensive review of the Authority’s liquidity position and take steps to improve its financing structure, in order to minimize current risks.
On human resources, the Chairperson said in respect to statutory deductions, the Auditors review on compliance with payroll statutory deductions noted that there were late payments of payroll income tax (PAYE) and SSHFC pension contributions for some months during the year. He continued that on ex-staff loans, the Auditors reviewed the ex-staff loan balance and requested for evidence of follow-ups on certain ex-staff with outstanding balances but no evidence was provided. He said the Committee recommends that the Board adopt immediate measures to ensure that all statutory payments are made on time to avoid penalties, and for the Board to take all the necessary measures to recover ex-staff loans.
“The Committee recommends that the Board and Management of the Authority be proactive and take the necessary steps in restoring the viability of the institution, and recommends for the Board to ensure that the corporation complies with all relevant provisions of the GCAA Act, 2018, for those who failed to register by June 2024,” he said.
He said the committee also recommended that Board and Management ensure that all Travel Agencies are registered with GCAA, and enforcement action taken for those that failed to register by June 2024.
