By: Fatou Krubally
The Auditor General’s 2023 Management Letter has uncovered a series of procurement breaches, contract irregularities, and unexplained payments in the construction of the new Banquet Hall at the Office of the President.
This has raised concerns over compliance with the Gambia Public Procurement Authority (GPPA) Act and potential financial losses amounting to millions of dalasis.
According to the audit, the Office of the President relied on a single-source procurement method despite GPPA warning that the justification “did not meet the conditions” set out in Section 44 of the GPPA Act, 2014. The report flagged risks of bias, weak oversight, and possible pressure exerted on the procurement authority to approve the contract.
The audit further identified financial discrepancies in payment vouchers, including an overpayment of GMD50,000 on air conditioning works, and an overstatement of requisition where fifteen air conditioners were requested but only fourteen were installed. The missing unit, valued at GMD154,000, remains unresolved.
In another instance, the Bill of Quantity (BOQ) included two separate line items for the supply and installation of cassette ceiling air conditioners totaling GMD3.29 million which auditors warned may amount to a double payment for essentially the same work.
Perhaps most striking was the inflation in the contract price. The project was initially approved at GMD23.9 million but later revised upward to GMD42.6 million. Yet, actual payments through the government’s financial management system totaled GMD52.4 million, representing an excess of nearly GMD10 million above the revised contract sum. The Auditor General described the escalation as unjustified and far above permitted thresholds under procurement rules.
Other lapses highlighted include the absence of a performance security from the contractor, the premature release of a 5% retention fee worth GMD2.13 million nearly a year before it was due, and missing commencement and completion dates on the original contract document. The report also noted that the project, which was scheduled to end by July 2023 after two extensions, was only completed in December 2023, reflecting weak supervision and poor contract management.
Auditors warned that these issues not only breach the GPPA Act but also expose the government to significant financial and operational risks. They recommended stricter adherence to procurement rules, thorough verification of payments, and stronger contract oversight to safeguard public funds.
While management argued that variations and additional works were approved, auditors noted that only one GPPA approval could be verified, leaving five additional variations worth GMD4.4 million unsupported.
The findings, classified as high-priority in several instances, underscore persistent weaknesses in government procurement and financial management, with the State House project serving as a costly example of poor compliance and oversight.
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By: Fatou Krubally The Auditor General’s 2023 Management Letter has uncovered a series of procurement breaches, contract irregularities, and unexplained…
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