NAO Flags Unauthorised D3 Million Allowance Hike at Banjul City Council

55

By Kebba AF Touray

The National Audit Office (NAO) has recommended that the former Chief Executive Officer (CEO) and Project Manager of the Banjul City Council (BCC) immediately review an unauthorised allowance increment amounting to D3,187,525.00. The review, the NAO advised, should be conducted in consultation with the Ostend Project Coordinator.

The recommendation is contained in the NAO’s special audit report on the City Link EU Ostend-Banjul Project, which was presented before the Finance and Public Accounts Committee (FPAC) of the National Assembly on Monday, 28 April 2025.

According to the NAO, the allowance increments were unauthorized, unjustified, and in violation of Regulation 202 of the Financial and Accounting Manual for Local Government Authorities, 2009.

The audit revealed that between 1st February 2021 and 31st December 2022, there was a notable increase in the monthly allowances paid to members of the project’s Steering Committee. Initially, members—including the Chairperson—received a monthly allowance of GMD7,500, while the Internal Auditor was paid GMD5,000. However, starting from 1st January 2023 to 31st December 2024, the allowances were doubled to GMD15,000 for the Chairperson and GMD12,000 for the other members.

Further, the NAO noted that on 1st March 2024, following a resizing of the committee’s composition, another adjustment was made: the Chairperson’s allowance was increased to GMD19,125, while allowances for the other members were reduced to GMD10,000. However, auditors found no documentary evidence supporting these increments, nor any formal approval by the appropriate authority.

The NAO warned that such suspected fraudulent practices could result in financial mismanagement, leading to loss of funds, reduced transparency, and damage to the credibility and reputation of the project management among stakeholders, including funding partners and the public.

To address the issue, the NAO recommended that the CEO and Project Manager, together with the Ostend Project Coordinator, conduct an immediate review of the allowance increments. They further advised that if the increments are found to be justified, formal approval should be sought, and internal control mechanisms strengthened to ensure that any future changes to financial remunerations are properly documented, reviewed, and authorized.

In response to the audit findings, the current BCC Management stated that the initial allowance increments were based on a “policy agreement” between the EU, Oostende authorities, and BCC management. However, they clarified that the newly proposed allowance increments were never finalized or implemented.

During the FPAC hearing yesterday, the current BCC Management made their presentation and responded to questions from the Committee. Following the session, FPAC announced it would invite former BCC officials—including the former Finance Director and former CEO—to appear before the Committee for further consideration of the audit report.

The BCC is scheduled to reappear before FPAC today, Tuesday, 29th April 2025, for continued discussions and possible actions regarding the audit findings.