By Kebba AF Touray
The National Assembly’s Public Enterprises Committee (PEC) has recommended that the Board and Management of the Social Security and Housing Finance Corporation (SSHFC) launch a full investigation into non-performing loans amounting to more than D141 million, citing concerns over financial mismanagement and poor loan recovery efforts.
The recommendation was part of PEC’s 2025 State-Owned Enterprises (SOE) report, which was tabled before lawmakers on Thursday, June 26, by the Committee’s Chairperson, Hon. Lamin J. Sanneh. The report highlights a range of financial irregularities and inefficiencies across multiple public enterprises, with SSHFC standing out for its significant portfolio of unrecovered debts.
According to the report, auditors who reviewed SSHFC’s Loan to Member Institution portfolio noted that a total of GMD856.6 million was classified as non-performing. Among the flagged loans was a GMD15.7 million facility extended to the Gambia International Airlines (GIA), under the First Provident Scheme (FPS). Despite a Memorandum of Agreement signed in December 2019 outlining a monthly repayment plan of D280,000, the committee noted that no payments were made during the reporting period.
Another loan under scrutiny involves the Gambia Civil Aviation Authority (GCAA), which reportedly holds a loan balance of GMD35.25 million under the FPS. However, PEC said this amount was not stated in the official payment agreement signed in 2019, which instead reflected a larger sum of GMD92.6 million. The committee noted that the GMD35 million figure was not confirmed by GCAA, raising questions about financial tracking and loan documentation.
Additionally, GCAA’s confirmed debt of GMD91.6 million — subject to a repayment plan that required monthly instalments of D500,000 — also went unpaid during the year under review.
“The Committee recommends that the Board and Management should investigate the above non-performing loans and take all necessary steps to recover the monies due,” PEC stated in its findings.
Concerns Over GAMCEL Receivables and Project Losses
PEC also raised concerns about receivables totalling D468,641.52 still outstanding in GAMCEL’s books, urging the company’s board to expedite the recovery of these funds.
Turning to the TAWA project under GAMTEL, the committee reported alarming financial inefficiencies. Signed in April 2015, the project was originally expected to last two years but ultimately dragged on for seven. Auditors found that GMD60.1 million had been spent on the project, while revenue generated totalled only GMD25.2 million, resulting in a net loss of nearly GMD35 million.
“Based on cost-benefit analysis, the cost incurred on the TAWA project has far exceeded the revenue,” the report concluded, recommending future project evaluations be conducted by independent experts to assess both progress and financial viability.
Variance in Retained Earnings and Unexplained Adjustments
The report highlighted an unexplained discrepancy in SSHFC’s financial statements, where retained earnings in signed accounts (D106.5 million) did not align with the trial balance figure (D128.6 million), creating a variance of D22.1 million. PEC said the transactions provided to explain the difference amounted to a net figure of only D587,025.
“The Board and Management should provide an explanation with supporting documents for the cause of the variance,” the committee recommended. It further directed that all future prior year adjustments be properly authorised, reviewed, and accurately entered to prevent such discrepancies.
Understatement of Creditors’ Account
Auditors also flagged an understatement of GMD16.3 million in SSHFC’s creditors’ control account. The General Ledger (GL) balance stood at GMD23.2 million, while the actual listing of account balances totalled nearly GMD39.5 million — a difference the committee described as significant.
PEC called on SSHFC’s Board and Management to “investigate and correct the differences noted above immediately.”
Legal Spending at AMRC Raises Eyebrows
The Assets Management and Recovery Corporation (AMRC) was also spotlighted in the report for outsourcing legal work totalling D2.1 million to external lawyers, despite maintaining its in-house legal department. The outsourced amount, according to the committee, exceeded the budget allocated for the corporation’s entire legal department.
“The Board and Management should ensure that this matter is looked into thoroughly and come up with a solution to utilise more of the legal department personnel,” PEC advised.
Procurement Irregularities at Gambia Ferry Services
At the Gambia Ferry Services Company (GFSC), the report noted that GMD3.8 million was spent on maintenance labour as of December 31, 2021, but the expenditures were handled directly by the maintenance department without going through procurement procedures.
“The transactions exceeded the single-sourcing threshold and did not go through the procurement process,” PEC stated, warning of weak internal controls and high risk of irregularities.
The committee recommended a thorough investigation into the procurement breaches and instructed that a report be submitted to Parliament by December 2025.
The PEC report adds further scrutiny to the governance of Gambia’s public enterprises, many of which continue to suffer from systemic weaknesses in financial management, oversight, and internal controls. The committee’s findings are expected to fuel broader calls for reforms, particularly in enhancing accountability and improving the sustainability of state-owned institutions.
