Dr Alieu Keita, the Director of Finance of the Kanifing Municipal Council (KMC) has admitted before the Local Government Commission of Inquiry on Thursday that KMC did not make any deductions of withholding tax from the payments they made to contractors.
The witness said in all contracts awarded during his time as the director of finance of the KMC they have never withheld the 10% tax from monies paid to the contractors. This tax is called “withholding tax” and it is incumbent on the KMC and all other local councils to withhold 10% tax from the total money they pay contractors or suppliers.
The witness was asked about one Mustapha Kanyi. He replied that Kanyi was an employee of the KMC, and at the same time, while working for the council, he was contracted by the council to supervise the dumpsite. He said Kanyi was made the contract fees as part of his salary. This means the salary included his contract payments.
“ *He was there to supervise the place, and at every end of month, we pay him as part of his salary* ,” he said.
Lead Counsel Patrick Gomez said Mustapha Kanyi was contracted by the KMC for consultancy on debt recovery services.
The auditors uncovered that certain information was deleted in the KMC systems, amounting to over D297,941.43 relating to rates collections. The auditors identified that the fund was received by Senior Accounts Clerk Yankuba Sonko. The witness said when the information reached him, he cause Yankuba Sonko to write his side of the story and this was brought to the Mayor, who forwarded it to the Establishment and Appointment Committee for further investigation. He added that he was not aware of the outcome of the investigation. He assumed that investigation was commenced regarding the matter. Lead Counsel Patrick Gomez told the witness that the rates manager then, Adama Jammeh, testified before the Commission that she did not appear before any investigation committee regarding the matter. He was told that there was no investigation into the matter of the deleted transactions. In response, he stated that he assumed that it commenced.
On the per diem allowances paid to people by the KMC, the witness said they are guided by the service rules, and the amount that they pay depends on the area the person goes. He added that the amount varies based on the place the person goes to. He was requested to provide detailed information about all the per diem to people during uis time as director of finance.
The witness said a lady was appointed and brought to his office without his knowledge. She was deployed as a cashier. He said he informed the Establishment Committee about their wrongdoing, and they admitted after talking to them. He added that he told the Committee to involve him in interviews before appointing anyone in his department because he should be aware since his is the head of the finance department.
He testified that another lady was appointed in the “Mbalit” Project without his knowledge, and he complained about that to the Establishment Committee.
The witness was asked about how the “Mbalit” accounts were managed. The witness said there is an accountant for the “Mbalit” Project. He added that the accountant was under his supervision and ensured that he monitored their transactions. He stated that the accountant is under his direct control and supervision. He said he does monthly reconciliations of the “Mbalit” accounts. He was requested to bring all monthly reconciliations he did regarding the “Mbalit” account. As soon as that request was made, the finance director said he does not have the records of the monthly reconciliations done with respect to the “Mbalit” accounts. He testified that the information was with the accountant of the “Mbalit” Project. Lead Counsel Patrick Gomez disputed this claim, saying the accountant was under his direct control and supervision, and he has access to all the accounts. Counsel Gomez applied to the Commission to make an order directing Dr Keita to bring all the books of account in relation to the “Mbalit” Project during his time as the director of finance. The application was granted. He was asked to bring the documents on or before 16 October 2024. He was further asked to provide the details of payments made to Quantum/Espace Motors during his time.
On how they were paying for the “Mbalit” vehicles to Espace Motors, he said they were paying from the monies collected from the “Mbalit” collection and from withdrawals from the KMC main account.
“ *The “Mbalit” Project cannot on its own pay for the trucks because the revenue generated was too small* ,” he said.
He stated that he initiated meetings with Espace Motors for the payment structure to be discussed, but the vehicle suppliers did not come. He added that the meeting failed to hold on two different dates scheduled. He mentioned that when the second meeting failed, the mayor asked him to leave it as it is. Lead Counsel Gomez told the witness that his statement about the mayor was misleading. He refferred the witness to his his written statement, in which the witness stated: “ *What I found at the Council was the “Mbalit” loan and KMC was paying it at Agib Bank based on the agreement of the “Mbalit” project. It was a bit complicated. I said to myself that we need to involve one JimGaye from Espace Motors to discuss, but he told me to leave it as it is* .”
He added: “ *When I went through the agreement, the mode of servicing of the “Mbalit” Project was so complicated, and I never wanted them to take advantage of the Council. The “Mbalit” Project could be best described as a “Special Agreement” between Council and Agib [Bank] because the garbage trucks were used as collaterals. I understand that the trucks were overpriced from the information I heard from CEO Sainabou Martin-Sonko at the time* .
He said it was not a conventional type of loan. Instead, it was a pre-arrangement made. He added that the “Mbalit” Project is a complicated project.
