NFSPMC Records Loss of Over D229 Million in 2020

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By: Kebba AF Touray

According to the Public Enterprise Committee (PEC) of the National Assembly, the National Food Security Processing and Marketing Corporation (NFSPMC) recorded an accumulated loss of two hundred and twenty-nine million, eight hundred and thirty thousand, five hundred and thirty-four Dalasi (D229,830,534.00).

This information was disclosed by the Legislative Committee in its report on the 2020 financial statements of State Owned Enterprises (SOEs) that was tabled before the plenary by Hon. Lamin J. Sanneh, the Chairperson of the Committee.

According to the Chairperson, the committee deems it prudent to pursue the queries emanating from the audit report with the objective of addressing the queries raised by officials of the National Audit Office, during their engagement with SOEs. Reporting further, Chairperson Sanneh said as of 30 September 2020, the Corporation recorded an accumulated loss of D229,830,534 and D139,777,478 during the periods under review, thereby casting a significant doubt on the Corporation’s ability to continue its functions. He said the Committee recommended the need for the Board and Management to improve its financial performance by coming up with strategies in order to continue its business.

On the significant reduction in farmer stock, Chairperson Sanneh said the auditors noted during the review of the inventory, a significant drop in stock during the period under review, and said only 2,232 tons of nuts were purchased from farmers as compared to 27,000 tons the year before.

“The Committee recommended that the Board and Management to put up strategies and ensure adequate consistency of farmer stock with its core business of wholesale buying and exporting of the country’s groundnuts annually,” he said.

On bank overdraft facility, Chairperson Sanneh said the auditors also noted that the Corporation had an overdraft facility of D1,109,667 and said this is expensive to maintain, despite the liquid closing cash and bank balances of D51.8million.

“The Committee recommends that the board and management to put up strategies and avoid taking overdrafts where possible, and improve the financial performance of the Corporation and to ensure that a documented policy is in place to make this possible,” he said.

On receivables, Hon. Sanneh said the auditors noted that during the audit of the receivable account balance, there was a difference of D1,843,815.45 between the debtors’ list and the balance provided in the general ledger, and said the auditors also noted that customers with credit balances amounting to D80,400 were also included in the receivable list. He added the Committee recommended the need for the Board and management to ensure that the difference is reconciled accordingly.