By Kebba AF Touray
A parliamentary report has uncovered major financial discrepancies in the 2021 financial statements of The Gambia’s National Water and Electricity Company (NAWEC), revealing an understated revenue figure of more than D545 million, raising serious questions about transparency and internal financial controls at the state utility provider.
The findings are contained in the 2024 Public Enterprises Committee (PEC) report on the financial performance of State-Owned Enterprises (SOEs), presented before the National Assembly. The report cites a significant divergence between revenue figures submitted by NAWEC and the independent analysis conducted by external auditors.
According to the report, NAWEC declared total revenues of GMD4,498,112,000 for the year ending 31st December 2021. However, the auditors—after examining NAWEC’s billing systems—calculated a different figure, resulting in an understatement of GMD545,782,461.00.
“NAWEC did not provide a breakdown of electricity revenue generated from prepaid sales (cash power) and post-paid billing. Based on this comparison, there was an understated revenue of GMD545,782,461 when compared with the audit analysis,” the report stated.
Discrepancies in Cash Power Sales
The analysis of NAWEC’s 2021 prepaid electricity sales showed that the company had 242,825 active meters, with 314,223,588.68 units of electricity sold, amounting to a cash power revenue of D3,367,677,750.00.
However, auditors raised an alarm about the absence of daily sales and reconciliation reports, which made it difficult to verify the authenticity of the figures. They noted that, given typical household electricity usage patterns—where most consumers operate standard refrigerators and lighting—consumption should have been higher than what was reported.
“Almost all electricity users have a standard refrigerator and electricity bulbs, which would consume a minimum of 5 kWh/Units per day,” the auditors noted, adding that a significant number of households with additional appliances could consume up to 10 kWh/day.
The report also outlined average spending and consumption metrics in 2021:
- Average Annual Electricity Consumption Per Meter: 1,294.03 units
- Average Daily Electricity Consumption Per Meter: 3.55 units
- Average Annual Customer Spending Per Meter: D13,868.74
- Average Daily Customer Spending Per Meter: D37.99
Auditors concluded that these consumption figures were inconsistent with real-life usage in most Gambian households, suggesting potential data manipulation or incomplete accounting.
Electricity Tariffs in 2021
The PEC report also listed the approved tariffs applied across customer categories in 2021:
- Commercial Customers: GMD10.90 per unit
- Hotels and Industrial Customers: GMD11.65 per unit
- Domestic Consumers: GMD10.14 per unit
- Agricultural Consumers: GMD10.14 per unit
- Central Government and Local Councils: GMD10.90 per unit
In light of the revenue discrepancies, the committee has called on NAWEC to implement daily banking of all cash power sales and to create a credible cash power sales projection mechanism to enhance accountability.
Suspected Fraud and Missing Funds
The report also detailed a suspected fraud incident dating back to December 2020, when GMD15 million was reportedly withdrawn from NAWEC’s account at AGIB Bank without authorisation.
“Such an unauthorized transaction fits the description of a fraud made possible by weak internal control lapses and a lack of regular monitoring in the company,” the PEC report declared.
The Committee has demanded that NAWEC provide an immediate status update on the police investigation and disclose the reimbursement terms allegedly agreed upon with AGIB Bank, as referred to in NAWEC management’s internal responses.
Receivables and Repayment Concerns
Further compounding the utility’s financial challenges, the report reveals that NAWEC entered into a debt servicing agreement that obliges it to repay GMD1.36 billion to an undisclosed creditor in monthly installments of GMD4 million. At this rate, PEC noted, it would take 28 years for the debt to be fully repaid — an outcome the report deemed unsustainable.
“This is considered to be too long for the corporation to recover all the amounts due… considering the time value of money,” the committee wrote.
To address the matter, PEC recommended that NAWEC recalculate all outstanding balances to ensure accuracy and identify any missing transactions that should be reflected in its financial records.
