By Kebba AF Touray
The Auditor General’s 2021 Report has revealed that GACH Company Limited exported 621 containers of heavy minerals, locally known as black sand, with an estimated value of 1,387,089.75 United States Dollar (USD), equivalent to D84,348,927.70. The report also disclosed that the company failed to pay the government its full 60 percent revenue share from the exports.
According to the Auditor General, the contract between GACH and the Government of The Gambia stipulated that 60 percent of export revenue should go to the state, amounting to USD 832,253.85 (D43,784,875.05). However, a review of the government’s bank statements showed that only USD 739,818.08 was received, leaving an outstanding balance of USD 92,435.77 (D4,875,062.51) unpaid to the government.
The report noted that GACH exported 18,494.53 tons of heavy minerals during the period under review but faulted the Geological Department for failing to independently verify the quantity extracted before export. “The Department solely relies on the data provided by GACH regarding the volume of heavy minerals extracted and exported,” the report stated.
The Auditor General recommended that the Geological Department establish an independent monitoring and assessment mechanism to verify the volume of minerals extracted and exported by GACH, to ensure transparency and accuracy in reporting government revenues.
The report also exposed unauthorized deductions by GACH in calculating its expenses. According to the mining agreement, only USD 125 per metric ton was allowed as selling expenses, but the company instead applied USD 133, creating an excess of USD 147,956.24 (D7,803,212.10). “No evidence of notification of these changes was communicated to the Geological Department by the licensee, contrary to clause 10 of the mining agreement,” the Auditor General reported.
In addition to the heavy minerals export findings, the Auditor General highlighted several other financial irregularities in government accounts. Non-tax revenues collected by various ministries and departments totaled D3.9 billion, of which D76.15 million was collected by the Geological Department under the Special Project and Heavy Mineral Accounts, and D277.97 million from the sale of former President Jammeh’s assets.
The report further revealed that the government approved D6.9 billion in state loans to State-Owned Enterprises (SOEs) without conducting a fiscal risk assessment, violating provisions of the Public Finance Act.
The Auditor General also found that D241,962,480 in revenue from the sale of timber in 2019 by the Ministry of Environment, Climate Change, and Wildlife remains unaccounted for, with no evidence that the amount was recovered or deposited into government accounts.
Other discrepancies included differences between figures in the Debt Management System (Meridian) and the official financial statements—specifically, an overstatement of interest payments by D3.6 million and a variance of D12.17 million in principal payments on external debt.
The Auditor General concluded that these findings demonstrate weak internal controls, poor monitoring of natural resource revenues, and non-compliance with key financial management regulations. He urged immediate corrective measures to safeguard public funds and ensure accountability in the management of national resources.
