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Momodou
Denmark
11646 Posts |
 Posted - 06 Aug 2007 : 22:38:10
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FOCUS ON POLITICS
THE 1981 POLITICAL CRISIS
GCDB TOOK THE SPOT LIGHT AS EXTERNAL AUDITORS PROBE IN
With Suwaibou Touray
We have been focusing on politics in this column. We have analysed the politics of pre-colonial to post-independence epoch. We have just completed the narration of political events for the year 1984. We have stopped where we said the second thing that happened was the introduction of an identification system, ID cards, for Gambian nationals in 1974 for the first time in Gambian history; that it was initially meant for boosting up security for the state.
Continued from: http://www.gambia.dk/forums/topic.asp?TOPIC_ID=4124
The issues that struggled for centre stage in early 1985 were numerous, but the crisis that beset the Gambia Commercial and Development Bank was an issue that did not have an equal in terms of importance. The Gambia Commercial and Development Bank (GCDB) was established in 1974 with the objective of making loans available to small and medium entrepreneurs as well as farmers. It is a
public commercial bank which had dominated banking in the mid 70s up to the early 1980s. The GCDB accumulated millions of dalasi through savings from individual depositors but the public continued to hear about scandals that were connected to the bank.
For example, in 1980, there was a big scandal surrounding a theft case of about 200 million CFA Franc. It was reported in the Nation newspaper that the money was about to be smuggled out of the country through the Banjul International Airport by officials of the GCDB who were attacked by the robbers; that the robbers were intercepted by the police at the highway. The scandal was popularly called the ‘Yundum highway robbery case’.
Another scandal that came to the limelight on 9th September 1982, was that involving one Mrs. Ngum who was arrested and charged with stealing a large sum of money of over 50 million CFA Francs belonging to the GCDB.
These developments infuriated the populace who came to realise that the bank was under going serious problems of mismanagement. A lot of irregularities occurred and to the disappointment of the general public, but that it was difficult for people to air such grievances openly for fear of being charged with defamation of character, libel etc.
But by end of 1984, with the intervention of the International Monetary Fund (IMF), it was recommended that the GCDB be probed. Hence, external auditors were invited to audit the bank. This is why after the budget session for the year 1984, the Minister of Finance, Mr. Sheriff Sisay was asked by the Torch Newspaper to shed light on the report of external experts but the minister told the Torch that he was not aware of the report. In the subsequent issues, the
Torch revealed that particular areas of the bank’s operations depart from acceptable practice; that its external accounts status in its 38 correspondent banks was unascertained in three years. According to the Torch, reports in 1974, ‘81, ‘83, ’84 had been prepared by experts on the bank; that if the Minister chooses to be ignorant, it would be at the expense of a ruined country.
The Torch continued to reveal that what they had gathered was that the auditors had suspended investigations for two reasons i.e. 1. Because investigation may take too long a time or 2. this is convincing evidence that fresh re-examinations were necessary. The Torch, however, insisted that it was risky evasion, marking time, reposed in the accounting process, a trust for the usual report in the generalities; that accidents that may unravel mysteries were suffocated in the routine.
As you can imagine, this created a long drawn out debate within the public. Many believed the Torch report. Others blamed the paper for irresponsible reporting.
Some say “let us see what happens etc.
At this stage, within a week, the publisher of the Independent weekly paper, “The Torch’, appeared in court on Monday, 4 Februaryt 1985. He was sued for libel as well as other general claims. He was sued by no other person than Mr. Housainou Momodou Musa Njie, the Managing Director of the Gambia Commercial and Development Bank in his personal and public capacity.
According to a BBC report, the paper has reported a D9 million dalasi overseas bank account belonging to Mr. Njie in December 1984. The BBC report mentioned Mr. Njie as a very powerful figure in financial, social and political quarters in Banjul; that he is also a brother in law to the President. According to the Torch, they too filed a statement of defence by 25 February 1985 through their counsel, the famous Sam H.A. George. With the long drawn out legal battle between the Torch and GCDB manager, the paper continued to report the findings of external auditor’s report on the bank, which is a body corporate with unlimited liability.
Further reports revealed that the bank has not maintained the minimum deposit with the Central Bank of The Gambia as required by the Central Bank of The Gambia Act 1971, nor had it maintained the minimum liquid asset as required by the financial Institution Act 1974 According to the auditors, the system of internal control was inadequate to enable them to determine that all transactions with customers, other banks and third parties were recorded. As a
result, they said, they have been unable to satisfy themselves as to the completeness of the books and records of the bank or that they have received all the information and explanations they required. According to the Torch report on the auditors, the bank’s records contained many balances which could not be analysed into identifiable and collectible amounts; that they believed that a
provision of at least D8 million Dalasi may be required against these items. It was also reported that the records show that over D50 million dalasi were unaccounted debts and that included loans and advances and an amount due from the Gambia Co-operative Union Ltd. for 25 million dalasi which they say was ultimately lent to farmers in 1979/80 and 1980/81. According to the Torch report, in the opinion of the external auditors, the provision for another bad
and doubtful debts and related interest is inadequate and a further provision of at least D22 million dalasi may be required against these items.
In these pages of the Torch on this report, they quoted a famous Henry John Ford who said “History is bunkum, what matters is money”.
See next issue as we forge ahead into the middle 1985.
Source: Foroyaa Newspaper Burning Issues
Issue No. 91/2007, 6-7 August, 2007
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A clear conscience fears no accusation - proverb from Sierra Leone |
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