By Kebba AF Touray
The National Audit Office (NAO) has called on the Banjul City Council (BCC) to take urgent legal action to recover more than D2.5 million disbursed to an unqualified contractor who failed to deliver on a renovation contract under the EU-funded Banjul-Ostende City Link Project.
In a management letter detailing its audit findings for the period January 1, 2020, to April 31, 2024, the NAO revealed that BCC awarded a D5.7 million contract to Jalakolong Trading Enterprise on December 31, 2021, for the renovation of the Crab Island buildings. However, Jalakolong was not registered with the Gambia Public Procurement Authority (GPPA), a fundamental breach of procurement regulations.
Despite this, BCC paid the contractor D2,507,880.68, even though the company failed to meet the contract requirements. Jalakolong later claimed bankruptcy in a letter dated June 27, 2022, and requested a bailout from BCC, which the Council declined.
“The Project Manager must initiate legal proceedings to recover the GMD 2,507,880.68 disbursed to Jalakolong Construction Company due to breach of contract and non-completion of the project,” the NAO stated in its audit report.
The audit revealed that Jalakolong was registered as a sole proprietorship on May 11, 2021, and has not filed any annual returns or renewals since. Auditors believe the business may have been formed solely to divert public funds, raising suspicions of fraud.
The contract was eventually terminated on August 18, 2022, and re-awarded to another company, ECOFARMS, under the same terms. However, the project remains incomplete.
BCC management acknowledged the irregularities and responded that its legal team had been directed to pursue recovery. “The Council has already written to our legal personnel for the necessary legal action. The action to be taken is to follow up with the law and work towards the recovery of the funds,” BCC stated.
But the NAO has emphasized that mere intention is not enough. “The CEO must ensure that there is an aggressive method of follow-up in taking legal action and recovering these funds,” the auditors warned.
The report also recommended that BCC implement stricter contract monitoring mechanisms and ensure that future contractors are GPPA-compliant to prevent further losses of public or donor funds.
The audit findings have intensified pressure on BCC to recover the lost money and demonstrate accountability in managing public contracts. As of now, no legal proceedings have been publicly confirmed, and the recovery of over D2.5 million in taxpayer and donor funds remains unresolved.
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