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Momodou
Denmark
11684 Posts |
 Posted - 19 Oct 2007 : 22:11:56
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Interview With Halifa Sallah
ON THE EXCHANGE RATE OF THE DALASI
Continued from: http://www.gambia.dk/forums/topic.asp?TOPIC_ID=4664
Part 3
Foroyaa: Let us move to the Dalasi, how do you see the frequent appreciation of the Dalasi against major currencies?
Halifa: I dislike the use of the term Major currencies. I have argued in my book on the founding of a Federation of African Republics that once we have an African Central Bank, an African Monetary Fund and an African Investment Bank, thriving under an African Economic Community with a common currency the Bank will be able to intervene like other Central banks are intervening in the developed countries to stabilize the exchange rate of the continental currency. When that happens the concept of major currencies will disappear and the speculative pressures on currencies which are so rampant in the international financial system which wrecked the East Asian Economies in 1997 will be controlled through new international monetary agreements. This however is beyond the scope of this interview.
The state of the dalasi is not a surprise to us. We have been monitoring it as editors of Foroyaa.
This is why it is good to wear many hats; Media work requires research and currency. My five years presence in the National Assembly also gives me additional insight.
Many Gambians are not aware of the volume of trade in the currency market. The volume of transactions of foreign currencies in the inter bank market for the first 9 months in 2004 was 12.40 billion dalasis or 635 million dollars at current exchange rates. In 2005 the figure rose to 15.97 billion or 819,000 dollars and in 2007 it rose to 23.9 billion dalasis or 1.26 billion dollars.
Remittances from Gambians abroad were estimated to stand at 856.3 million dalasis in 2004, 1.7 billion dalasis in 2005 and 1.8 billion dalasis in 2006.
Foreign direct investment was estimated to be 1.3 billion dalasis in 2005 and 1.2 billion dalasis in 2006. The total value of imports stood at 6.3 billion in 2005 and rose to 6.5 billion in 2006. Most of what is imported is destined for re-export. The total value of exports is put at 2.7 billion dalasis in 2005 and 3 billion dalasis in 2006. 2.6 billion of the earnings from exports come from re-exports.
One may now ask: Has the money which is being traded in the inter-bank market been coming from remittances or earnings from exports? Has it been coming from the Productive base of the Gambian economy because of Macro economic stability? The answer is in the negative. Our finding is that there is a decline in the number of people who used to come to the Gambia from the sub-region to purchase goods because of concessionary trade arrangements between Senegal and neighbouring countries. Hence the Gambia’s re-export trade is being strangulated, thus depriving the country of foreign exchange earnings. More Gambian traders are crossing over to Senegal to purchase cement vegetables and other commodities giving rise to greater demand for foreign currency. The groundnut and cotton trade are in shambles and balance of payments support is on the hold. Foreign direct investment is mainly in the hotel sector which generally retains its foreign exchange earnings.
This is why we concluded that the trade in the inter bank market had dynamics of its own and had little link to the productive base of the economy : It was an asset to the macro economic environment of a country with a narrow economic base rather than a by product of a robust macro economic environment.
Foroyaa: So you disagree with the position of the Central bank and the SoS Finance?
Halifa: I disagree totally. The banking system in the Gambia is not linked to the productive base of the economy: Development banking ceased when the Gambia Commercial and Development Bank and the Agricultural Development Bank collapsed. Now we have merchant and speculative banking: Even the secretary of State has lamented the inadequacy of investment in the productive base: However he was blaming the banks for pursuing profit as if the banks are state institutions implementing government policy, instead of developing institutions that are capable of developing a corporate Gambia which can earn the confidence of the Banking system for productive investment.
Foroyaa: What then is responsible for the current situation and what are the implications?
Halifa: The situation emerged from a sudden shortage of dalasis in the banking system. We tried to have an interview with the Central Bank to find out why the banks were claiming to lack adequate stocks of the local currency but were not granted an interview. Foroyaa then raised the alarm that something undesirable was creeping; We predicted that if the shortage of the local currency continued while foreign exchange continues to come as remittances, budget support for NGOs and expatriates, assistance to Gambians from donors abroad or investments in the purchase of land and for construction, the demand for the dalasi will exceed supply, thus leading to speculative down turn of the value of foreign currencies. This is confirmed by the fact that even though the other currencies like the Euro and the pound were appreciating against the dollar in the Gambia those currencies were depreciating along with the dollar against the dalasi. This is absurd by all standards.
We further predicted that as the foreign currencies plunge daily the speculators are likely to withhold their foreign currencies, Banks and big importers are likely to save money in foreign bank accounts to draw money from interests instead of taking a risk in buying and selling currencies whose value one cannot determine the following day. We also indicated that investors will be driven away by the unpredictable environment. We argued that prices are not likely to fall for fear that the foreign currencies will appreciate by the time the importers proceed to import new consignments. It is therefore no surprise that both the President and the Central Bank are alluding to such developments. However the right questions are not being asked. Hence the right answers are still illusive to them.
Foroyaa: What are the right questions?
Halifa: The two most important questions which should be asked to understand the peculiar situation of the exchange rate instability in the Gambia are as follows: Why did the banks claim shortage of dalasis before its appreciation started to skyrocket by the day? Was there a real shortage or was it orchestrated by hoarding or policy decision?
Foroyaa: How can these two questions unravel the cause of the instability?
Halifa: Just note that the total sales of foreign exchange to get dalasis rose from 8 billion dalasis in 2005 to 11.4 billion dalasis in 2006. The need for the dalasi is obvious by the increases in the sale of foreign exchange to get dalasis: Needless to say, if there is shortage of dalasi notes in the face of a growing demand to sell foreign currencies to get dalasi notes, supply of foreign exchange would exceed supply of foreign LOCAL currency which will put pressure on the dalasi to appreciate as long as those selling foreign exchange are under pressure to sell their foreign currencies. In our view, the problem can be compounded if there are opportunistic policy interventions through instructions to banking institutions to fix the rate lower on a daily basis or if the banks themselves form a cartel to fix prices.
The rapid appreciation of the dalasi could be sustained only if the bulk of those who sell their foreign currencies in exchange for the Dalasi are essential and prolonged users of the dalasi in their transactions: However if they are speculators the tendency is to stop trading when the market becomes unpredictable. In short you can buy foreign exchange today at a given price which may have been estimated to give you a dalasi profit only for you to lose that dalasi profit by the drop in the value of the foreign currency overnight. Once there is exchange rate instability the bureaux de change; the banks and the speculators can lose millions on a daily
basis. This is what motivates them to hoard the currencies they possess or make deposits in foreign bank accounts. This leads to the depressing of the foreign exchange market which can lead to the flight of capital and reduction of foreign direct investments.
Foroyaa: How does this affect trade?
Halifa: Those who come from neighbouring countries to purchase goods would have to spend more money to get dalasis which means that if the prices remain the same Gambian goods would be more expensive for them to purchase. This can undermine sales of imported goods more than 30 per cent of which is meant for re-export. Secondly, the hoarding of foreign exchange and its flight could result in the scarcity of foreign exchange in the market and the resultant appreciation of the values of the foreign currencies against the dalasi: The anticipation of such developments leads importers to maintain prices at the same level and postpone importation for fear of losing millions should they drop prices only to be faced by an appreciation of foreign currencies.
What causes economic crisis, therefore, is not the actual value of the local currency but the instability of its exchange rates with other currencies. Once there is stability those engaged in the trade in foreign currencies can fix their profit margins. The importers would be able to fix prices to determine profit margins to prepare for more imports while the retailers would also be able to determine their profit margins and maintain price stability: In short exchange rate stability leads to market stability in the currency domain and price stability in the commodity trade.
Foroyaa: What is the way forward?
Continued below
Source: Foroyaa Newspaper Burning Issue
Issue No. 122/2007, 17 - 18 October, 2007
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A clear conscience fears no accusation - proverb from Sierra Leone |
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toubab1020
12306 Posts |
Posted - 20 Oct 2007 : 00:52:34
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| Thanks for posting this,I have read it and await the next instalment,with interest! |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Momodou
Denmark
11684 Posts |
Posted - 22 Oct 2007 : 21:40:56
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Interview with Halifa Sallah (CONT.)
On the Exchange Rate of the Dalasi, ECOWAS Court on Ebrima Manneh and Other Burning Issues
Foroyaa: What is the way forward?
Halifa: This would have been a good opportunity for any government which had not relied on any opportunistic manipulation of the exchange rate regime in place to cause the disequilibrium, to put its financial institutions on a solid foundation.
Foroyaa: Do you believe that the current exchange rates are not market determined?
Halifa: I will be able to give an unequivocal answer if the Central bank can give answers to the following questions:
What is value of the dalasi notes which are currently in circulation or are reserved in the coffers of the Central bank?
Are the commercial banks experiencing any shortages of dalasi deposits in their buying of foreign currency?
What is the value of each of the foreign currencies which had been traded up to the time of the exchange rate instability?
Who determines the exchange rates, the banks or the Central bank?
Foroyaa: Why are these questions relevant?
Halifa: They are relevant because exchange rate instability has primary and secondary causes? It is common knowledge in economics that if you print more paper money than goods and services required to be exchanged the value of the currency will depreciate and inflation will skyrocket On the other hand, if the currency available falls far short of the requirements for the goods and services to be traded it will experience an appreciation in value.
The object of monetary policy in industrialised export oriented economies and non industrialised import dependent economies are different.
In short; an industrialised export oriented economy could get its Central bank to intervene to devalue its currency and contain inflation, thus making imported goods more expensive than locally produced goods. Devaluation of currency in an industrialised country can be linked to the stimulation of demand for local goods by nationals and importers who would be able to buy more goods from the foreign money they possess: In a non industrialised import dependent economy depreciation of the value of the local currency can lead to inflation and appreciation of the currency can undermine investment and create the type of uncertainty which drives away importers and causes scarcity of goods which are not produced locally. Shortages of goods are likely to cause inflation. The monetary policy suitable for developing countries is the maintenance of exchange rate stability.
Foroyaa: Some readers may wonder how there can be shortage of local currency when government can just print money as it wishes.
Halifa: It is not that simple. Shortage can be artificially caused by simply hoarding money or it can be caused by the quick wear and tear of money without raising the money to pay for the printing of new money. This is the primary responsibility of the Central Bank.
Section 161 of the Constitution states: “The Central Bank shall be the only authority to issue the currency of the Gambia.” The minting or production of currency is a very expensive enterprise. The currency requires security features to distinguish it from counterfeit. Hence shortages of currency can occur if old
ones go out of circulation without enough new currencies being produced. I am not sure whether that is the case but one has to go to a bank to withdraw money from an account to discover that the money available is a health risk because of its decay.
Foroyaa: Finally how is exchange rate stability maintained?
Halifa: Section 161 subsection 4(a) of the Constitution states:
‘’The Central Bank shall promote and maintain the stability of the currency of the Gambia.’’ The primary task is for the Central Bank to ensure that the value of the dalasi in circulation does not fall short of the actual demands for dalasi in all transactions in the economy. Secondly, the Central Bank must ensure that enough foreign currency exists to carry out all the transactions required in the economy. Where there is foreign exchange in excess of what is required the Central Bank should implement fiscal policies which will enable it to mop up such foreign exchange to put it in its reserves or advise the banks to deposit it in their foreign reserves.
Furthermore the Central Bank should keep track of the wear and tear of the local currency with a view to putting out of circulation by environmentally friendly means monies which are no longer fit for circulation and raise the necessary funds to replace them without any delay. Where there are dalasis in circulation in excess to what is needed in all the transactions in the economy the Central Bank must adopt monetary and fiscal policies to mop up the excess liquidity or encourage the banks to expand more into development banking by investing in foreign exchange generating projects to ensure a balance and proportionate growth of the foreign exchange requirements of the country in the absence of speculators. With exchange rate stability the banks will derive slow but sure profit from investments in the productive base while maintaining the balance between supply and demand in the currency market. The primary role of the Central bank is precisely to adopt policies which will enable it to facilitate a balance between supply of and demand for the Gambian dalasi, on one hand and supply of and demand for foreign currency, on the other hand. Once it is capable of doing this there will be exchange rate stability.
Foroyaa: What is your last word on this issue before we move to the issue of Chief Manneh and the ECOWAS Court?
Halifa: If I am wrong I stand to be corrected by the Central Bank, the other Banks, the Department of State for Finance and Economic Affairs or the Chamber of Commerce through granting an interview with the paper Foroyaa or the Daily Observer.
Foroyaa: How do you see the detentions without trial of Chief Manneh, Kaniba Kanyi and others and the proceedings before the ECOWAS Court?
To be continued
Source: Foroyaa Newspaper Burning Issue
Issue No.124/2007, 22 – 23 October, 2007 |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11684 Posts |
Posted - 25 Oct 2007 : 00:31:27
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RE: INTERVIEW WITH HALIFA SALLAH (PART 3)
We discontinue the interview of Halifa Sallah to publish the reaction to Part Three of the interview. See the next issue for the continuation. – Editor
The Editorial Board,
FOROYAA (FREEDOM) Newspaper, Churchill’s Town,
Serrekunda.
Sir,
Your interview with Mr. Sallah on the exchange rate of the Dalasi (Foroyaa issue no. 122/2007) touched on a very thorny issue that needed a careful analysis. The effects of a strong currency spurred, not by our country’s exports earning capabilities, but an oversupply of the US dollar in the exchange markets is a recipe for severe economic dislocation. Halifa’s legitimate concern about the cyclical nature of the dalasi is not hard to discern. Sound economic management and an outward-oriented trade and industrialization strategies are important economic components of successful and sustainable development. It is the people, banks and businesses, not government, that are the source of a nation’s prosperity.
The recent rise of the dalasi against the backdrop of mounting essential commodity prices and electricity charges should be a cause for concern to anybody who has the interest of the average Gambian. Every currency system involves a delicate balance of costs and benefits and learning to appreciate a strong currency will be difficult as long as anxieties about the steep rises in prices remain.
A stronger dalasi has the tendency to crimp sales abroad and boost spending at home. Imported goods will become cheaper and the consumers will gain through greater increase in purchasing power. Cheaper imports will raise household’s real income, fuelling consumption. And by keeping a lid on inflation, it will permit lower interest rates, which in turn stimulate domestic spending.
So why the complaints?
One concern is that the dalasi’s recent cyclical movements will turn into a destabilizing rout if businesses and traders start losing faith in the state of our economy. An expensive dalasi will create unwanted trade deficits- further worsening our already BOP situation which in turn create a run down on the reserves and deepen GDP.
There are those who still believe that the strength of the dalasi is a reflection of prudent economic management and a symbol of economic power as erroneously alluded to by a respectable religious leader. It
is a dangerous fallacy to link an inconvertible currency to economic performance that can make our vision to go with the wind. Although exchange rates should reflect economic fundamentals, a market determined exchange rate exudes better economic performance than a controlled and managed rate. The dalasi is inconvertible and our main export earners apart from remittances (also affected by the rise in the dalasi) are the receipts from tourism and groundnuts.
Since revenue shortfalls have been registered in respect of export earnings, the only logical explanation for the recent rise of the dalasi is an ‘unusual’ influx of a significant amount of foreign currency in the foreign exchange markets amid concerns over the state of the weakening dollar, thus creating an excessive, irrational demand for dalasi. Since the CFA franc has a fixed parity with the euro any movement in the exchange rate between the dalasi and the euro would have triggered a similar movement against the CFA. According to independent researchers the most sought after currency in our economy is the dollar, followed by the CFA, then the euro. The volume of currency traded formerly in the inter-bank markets has been steadily rising with enormous propensity.
The financial services sector had registered remarkable growth recently with more banks from the sub-region opening their doors in this country. Yet most of these banks are yet to maximize investments in the productive sectors in order to stimulate growth and create more employment. Most of the investments that banks made over the past years were in the money markets mainly Government Treasury Bills. The amount of funds invested in these bills would have stupendously benefited the economy if it was channeled in the priority sectors.
In Senegal, banks are actively working with the local investors (Senegalese) to develop the manufacturing and commercial sectors which as recently reported by a Lead Economist at the World Bank, Jacques Morrisset, account for 97% of the 100,000 people who get employed every year.
The current unemployment rate in Senegal is reportedly 25%. In other West African countries like Ghana and Nigeria, it is the commercial banks that are also spearheading the development agenda by pro-actively providing development credit to the local businesses and investors.
Let me give you a distressing case to buttress my argument. Sometime last year, I met a Lebanese friend who just came to the country to join his family members. Barely a month after his arrival, he walked into one of the major banks and arranged for a 90-day Letter of Credit to pay for the goods he ordered from a foreign supplier. When the goods arrived at the ports, he negotiated direct delivery with the Customs. Within three months he was able to sell the goods and pay off the bank and Customs. That business wholly financed by the bank, only created employment for two shop assistants and a driver.
On the other hand, a Gambian with two landed properties who has been banking with the same bank for over fifteen years was denied a loan for the simple reason that his account was not consistently active for a period of time. His explanation to the bank was that he was sacked three times from different jobs and that affected the movements of funds in his account. Even with two title deeds as collateral for the loan to set up a business that will employ six to eight Gambians, his request was turned down and was asked to come back after a year. This therefore begs the question- was the bank acting in the national interest or was it a case of purely preferential treatment? This situation would have been different in the banking industries in our neighboring countries where banks prioritize their investment portfolio in favor of the productive sectors.
It strains credulity to argue that banks are in business to make profits and consequently they are well informed about the conditions of the forex markets and are better equipped to deal with the cyclical movements of the dalasi through effective risk management strategies than the bureaus. There are a number of market instruments that banks can use to hedge against currency fluctuations like arbitrage in the spot and future currency markets, and therefore I find it hard to believe that banks could be involved in hoarding the dalasi. This government must have effective regulatory strategies to curb the growing players in the market for foreign currencies.
Otherwise, the stability of our economy will be at the behest of speculative profiteering by money dealers. Since the Gambia is not immunized against severe currency fluctuations, external shocks outside the country can have multiplier effects in our economy. The need for a prudent regulation of the commercial banks, allied with development, implementation and management of sound policy is critical to ensure the robustness and resilience of a healthy economic system.
The strategy that augurs well is to encourage greater private investments in the productive sectors and have more stringent supervisory framework for banks. The growing number of banks (a total of 9 banks as at October 18, 2007), and, the complexity and magnitude of the inter-bank and foreign currency transactions created a strong and more formal emphasis on regulation and supervisory practices in the country. Getting to our vision in 2020 is becoming much harder than we might like and all hands should be on deck to achieve this goal. Mr. Sallah’s analysis of the current situation of the dalasi points to a pressing case for careful review and urgent action.
Lee Iacocca once noted, “ You can have brilliant ideas; but if you can’t get them across, your ideas wont get anywhere.” The frequent interviews with Halifa provide examples of learning this valuable principle.
I want to thank you for publishing my story and wish my contribution is only taking as a patriotic citizen dutifully contributing towards national development and not in any other political context or motives.
Dr. A O Faal.
Source: Foroyaa Newspaper Burning Issue
Issue No. 125/2007, 24 – 25 October, 2007 |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11684 Posts |
Posted - 26 Oct 2007 : 17:31:11
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INTERVIEW WITH HALIFA SALLAH (continued)
How do you see the detention without trial of Chief Manneh, Kanyiba Kanyi and others and the proceedings before the ECOWAS Court?
The worst forms of human rights violation are murder and disappearance of persons. Murder is permanent disappearance. Detention without trial is temporary disappearance. A just government must protect all her citizens from murder and disappearance without fear or favour, affection or ill will.
The Gambian people are now seeing in practical terms the significance and limits of constitutions.
One of the most important provision of the 1997 Constitution which was absent from the 1970 Constitution is the time limit for Detention without trial.
In short, a sovereign person is a free person whose liberty, should not be fettered. This is why Section 19 of the Constitution states: “Every person shall have the right to liberty and security of person. No one shall be subjected to arbitrary arrest or detention. No one shall be deprived of his or her liberty except on such grounds and in accordance with such procedures as are established by law.”
It further states that any person who is arrested and detained shall be informed as soon as is reasonably practicable and in any case within three hours, in a language that he or she understands, the reason for his or her detention and his or her right to consult a legal practitioner.
The right to know why he/she is detained and to see a legal practitioner within three hours after ones detention is designed to prevent disappearance of persons. If the Constitution is respected no body can be in custody for more than three hours without public knowledge.
Furthermore, if a person is not release the constitution states that he or she should be brought before a court without undue delay and in any event, within seventy two hours. This is the second instrument that is designed to prevent the disappearance of a person.
It is therefore absolutely clear that if the Constitution is respected no law enforcement or security agent should keep a person in custody in secret for more than 3 hours without informing him or her the right to seek legal advice and for more than 72 hours without bringing the person before a court.
Could we then say that the Constitution has no use since there is detention for over 72 hours without trial?
We must understand the power structure envisaged in a Sovereign Republic to know where the powers of the Constitution start and end.
Please explain.
In a Sovereign Republic the Constitution has powers and the people have powers. In the ideal situation the Constitution gets the powers that the people give it.
In short, through a referendum the people become the first lawmakers of a Republic. Since the people are the makers of Constitutions. They should be able to change any of its provisions through a referendum.
Hence, the first lesson is that Constitutions are created by people and can be changed by people.
The second lesson is that once a Constitution is promulgated it has the power of law and people become subject to it. In this way the Constitution also becomes supreme. It governs how a country is administered.
Thirdly, a Constitution has power only if its provisions are respected and enforced. People with power can however disrespect the Constitution with impunity or even overthrow it.
The fourth lesson is that the people have power to change those who disrespect Constitutions. Ultimately, it is the people who make Constitutions powerful or powerless.
How does it apply to Chief Manneh?
Chief Manneh should not be under detention without trial for more than 72 hours. Hence his disappearance should be of concern. The state has been accused. It has a duty to appear and explain its case. It is left to the court to decide the rights and wrongs of the case.
What can people do if the government fails to abide by the rules.
Popular outcry is the instrument to combat impunity. Every honest person should talk. If the outcry comes in the media, the mosques and churches, the platforms of civil society a government will be compelled to listen.
What if it fails to pay heed?
The people are sovereign. They can refuse to elect such a government and replace it with another.
Some people have said that the sovereignty of the people have been reduced because they have legally accepted coup detat in the preamble of the Constitution.
A preamble is not a legal provision. In actual fact it is not a living part of the Constitution. It is supposed to be a mission statement. I must say that every legal and actionable provision of the Constitution runs counter to rule by might and impunity. It is left to the Gambian people to elect governments which respects section 1, subsection (2) of the constitution which states: “The sovereignty of The Gambia resides in the people of The Gambia from whom all organs of government derive their authority and in whose name and for whose welfare and prosperity the powers of government are to be exercised in accordance with this Constitution.”
Source: Foroyaa Newspaper Burning Issue
Issue No. 126/2007, 26 – 28 October 2007 |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11684 Posts |
Posted - 29 Oct 2007 : 15:43:28
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Interview with Halifa Sallah
(Continued)
Foroyaa: We need to focus on the constitution, PDOIS’s programme for democracy and development ; NADD’s evolution, demise and its future; Religion and politics and other issues being raised about you. Some are interested in knowing why PDOIS is still not the major opposition party waiting to take over; some wonder why PDOIS have concentrated on one presidential candidate since its inception while others rumour that you carried on a coup against Sidia by being NADD’s flagbearer; some accuse PDOIS of having an ideology which is alien to the people and is therefore rejected. Some claim that you should never have advocated for the adoption of the 1997 Constitution; that you should not have accepted to be a flag bearer and have given reasons that we would like to pose. However before we get into all these issues we would like you to tell our readers how far you have gone with the launching of your recent book?
Halifa: The book “Treatise on founding a Federation of African Republics “ is being produced locally to give boost to national capacity to produce high grade books for universal consumption. The starting point was a bit difficult for the technicians. However, they have gone through all the hurdles. I have developed a strategy for launching it world wide.
Foroyaa: How do you intend to go about it?
Halifa: Let me expose readers to the preface so that they know the content before explaining the strategy for its launching. The preface goes as thus:
PREFACE
In March 2007, a month after I ceased to be a member of the Pan African Parliament, I received a memorandum conveying my appointment as a member of a Task Force constituted by the Bureau of the Pan African Parliament, to prepare a report on the feasibility of establishing a Union Government and a United States of Africa for the consideration of Parliament before the adoption of its position on the Grand debate conducted by the Heads of State of Africa, in Ghana in July 2007.
This animated the Pan Africanist consciousness which is buried in my very Social being. My creative spirit was jolted into action and given an accelerated power of motion by my recollection of Lumumba’s behest which is conveyed in his farewell letter to his wife, as he prepared his mind for death in the hands of his murderers.
Lumumba wrote:
“Neither brutality nor cruelty nor torture will ever bring me to ask for mercy, for I prefer to die with my head unbowed, my faith unshakeable and with profound trust in the destiny of my country, rather than live under subjection disregarding sacred principles. History will one day have its say ....... Africa will write her history and from the North and South of the Sahara it will be a glorious and dignified history.”
Looking at the task before me, I felt that the moment Lumumba had envisaged has finally arrived, after years of villainous actions to subject those who worked tirelessly for the liberation of the continent to indignities and death. Unity was standing at the door knocking to awaken the sleeping Giant. The challenge therefore falls upon all of us to write the glorious history Lumumba envisaged by making it.
At that point, I felt a sense of calling and duty to be among those who may have the honour to be part of those who are to defend what countless great Pan Africanists have lived and died for, that is, to carve a homeland free from subjugation, marginalisation and degradation and create a destiny of liberty, dignity and prosperity for the African Peoples.
This is the thrust of the book. Its primary objective is to give convincing epistemological evidence regarding the feasibility and inevitability of founding a Federation of African Republics.
This book is not designed to be a recipe on how Africa is to unite. It is not prescriptive in its approach. It does not romanticise, glorify or valourise Africa ’s past in an attempt to cover up the demonstrated inadequacies of the present.
This book adopts a discursive approach which guides the reader through the various stages of African history by making relevant citations from reputable sources to show with unimpeachable clarity the interconnection and concatenation of developments which compel the Heads of State, The Parliament, The Economic, Social and Cultural Council and the African peoples, as a whole to revisit the subject of African Unity in a more systematic, deliberative, realistic and substantive manner.
The book has the collateral objective of restoring the epistemological merit of Pan African scholarship by relying mainly on citation from the works of Olaudah Equiano, Dubois, Nkrumah, and the various Declarations, Conventions, Treaties, Acts, Charters, Protocols, Agreements, Programmes, Policies, Plans of Action and Projects of the Organs of the Continent to prove that the Strategic direction and justification for Unity have already been conceptualised and the architecture for the establishment of the juridical, institutional and programmatic policy foundation for a United Africa has already been laid.
It therefore aims to foster a paradigm shift from the epistemological prejudices which have made many African Academics/Academicians to accuse those who make citations from the works of Pan Africanists as discarding Scholarship. It aims to restore the credentials of Pan African literature as a minefield for African Scholarship which is in dire need of being harnessed by African Academics/academicians to help groom African students and intellectuals who can help move the emancipation and development agenda of the continent forward to carve a dignified destiny for the people.
The book is divided into chapters and sections.
The sections in chapter one deal with the problems of founding a state, examine the genesis of African Nationalism and the concept of an African Nation, map out the location of Africa in the World prior to the global slave trade, show how Africans who were forcibly removed from their land during slavery yearned to return to the land of their birth only to be informed by the system of colonialism that there was no land to return to. The sections finally show that the spirit of African Nationalism was at the core of the struggle against the Global Slave Trade and Colonialism.
The sections in chapter two examine the origin of Pan Africanism, show its contribution to the shaping of the world order after the first and second world wars, especially the provision of the Mandate system of the League of Nations , the United Nations Charter and the provisions of the Universal Declaration of Human Rights. They give a summary of the key recommendations regarding the Juridical and institutional foundation for exercising the right to self-determination as envisaged by delegates to the first Pan African Conference of 1900, the First Pan African Congress, the National Congress of British West Africa and the four other Pan African Congresses which followed.
The sections in chapter three focus on the challenges and achievements of the liberation struggle for self-determination and independence.
They highlight the birth of Independent Ghana, Dubois’s advice to Nkrumah on the way forward for African Unity and Ghana’s unique contribution in becoming a bridgehead for the struggle for political independence.
The roles of the Conferences of Independent African States and The All African Peoples Conferences pioneered by Ghana in promoting continental liberation and the contradictions which emerged between the Casablanca, Brazzaville and Monrovia groups before the birth of the OAU have been fully documented.
The sections in chapter four focus on the birth of the OAU, the operationalisation of its committees and the rise and impact of Micro-Nationalism. The programme propounded by Nkrumah and his final stand for the unification of the continent, before his overthrow is given sharp focus.
The sections in Chapter Five map out the challenges of African Integration during the first lost decade which gave birth to the Lagos Plan of Action, the second lost decade which gave birth to The Abuja Treaty and the Third lost Decade which gave birth to the African Union . They show the final demise of Micro-Nationalism and document all the structural and programmatic responses to the growing impoverishment and marginalisation of the peoples of the continent, despite its immense wealth.
The sections in chapter six deal with the extraordinary meeting in Sirte and the birth of the African Union. They examine all the relevant juridical instruments which can facilitate the drafting of a Federal Constitution and review the state of the Executive, Parliamentary and judicial organs of the AU which could evolve into the pillars of a Federal state. They review the role of the Regional Economic Groupings and the Financial Institutions of the Union in fostering African Unity.
The sections in chapter seven explore the way forward. The principle of subsidiarity which holds that acceptance of membership of a Federation means loss of sovereignty is contrasted with the principle of collective sovereignty which conceives membership of a Federation as giving a multiplying effect to the individual Sovereignty of countries. The sections show that the establishment of the African
Economic Community with an African Central Bank, an African Investment Bank and an African Monetary Fund, capable of providing stable exchange rates, balance of payments and investment support to continental food and agro industrial and other enterprises can break the agricultural monopoly of the north if complemented by effective countermeasures to ensure equitable trade and realistic and equitable exchange rates of world currencies. These measures are argued to be a viable reposition of Africa, in a world characterised by trading and financial blocs.
The sections further explain the role of ideology and the nature of the third phase of pan-Africanism and highlight the necessity of the Convening of a World Conference on Equitable Trade and another on Equitable Financial and Monetary Systems serve as the foundation for the establishment of a New International Economic order. Finally, the last section in chapter seven focuses on a practical timetable for the establishment of a Union Government and a Federation of African Republics.
Source: Foroyaa Newspaper Burning Issue
Issue No. 127/2007, 29 – 30 October |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11684 Posts |
Posted - 05 Nov 2007 : 19:59:50
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Continuation of Interview with Halifa Sallah
Part 7
Why didn’t you get a publisher for such an important book?
We are trying to build local capacity for book production. Edward Francis Small was a pioneer of the liberation struggle in the Gambia. Our printing press is named after him. The press is responsible for printing Dawda Faal’s history book. It is to print a Mathematics book prepared by Sam Sarr. Sidia Jatta has produced a book for learning in the local languages. I have five books in the pipe line: The manuscripts are ready. I will put one for sale and use the income as seed money to print the next one. President Jammeh has challenged his opponents to show what they can offer the nation during his term in office. We will be producing books which will enlighten the world. While he is purchasing musical instruments, we will be making savings to purchase printing machines and to build a Pan African Library. Since he claims to be a destroyer of HIV, we challenge him to put his knowledge in books for the medical students of the world just as we are going to be doing.
How do you intend to distribute the book?
I have engagements up to the 11th of November. I will do the launching after the 11th. I will give some school libraries free copies and distribute it locally at a price of 200 dalasis per copy plus sales tax, if I do not manage to get a waiver. Furthermore I will be willing to visit any country in the world where a group of students or persons numbering 50 are willing to patronize the launching with a contribution of between 25 to 50 pounds or its equivalent in dollars and Euros for a copy of the book and a cassette of the launching: This will enable me to meet all travel and accommodation costs as well as to keep seed money for more publications.
Do you have a contact address?
The requests should be forwarded to People’s Centre for Social Science, Civic Awareness and Community Initiative, P.O. Box 2306, Serrekunda, The Gambia, West Africa, Tel: 00220-4373138/ 00220-9902864, Email: peoplecentre.gambia@yahoo.com
Now. Let us move to the other issues. You have said that the preamble of a constitution is not a living part of a constitution and that the people of the Gambia did not support a constitution which undermines their sovereignty.
Yes that is my position and no constitutional lawyer would dispute the fact that a preamble is just a mission statement or better put a declaration of intent. It is part of the spirit and not the letter of a constitution. Needless to say, where the spirit contravenes the letter of a Constitution the spirit must become null and void. Those who wish to do a critique of the 1997 Constitution should focus on its letter in comparison with the letter of the 1970 Constitution. This is what Foroyaa did to enable the Gambian people to be able to make an informed choice
Some people are still claiming that the People should have rejected the constitution to defend their sovereignty?
This is one claim I find very difficult to understand. First and foremost, those who truly wanted to defend the sovereignty of the people would have opposed the suspension of the 1970 Constitution by Decree Number One and the dissolution of the executive, the parliament and the political parties. Decree Number 1 was the worst assault on the sovereignty of the people. The Decrees were made to be supreme. This is what consolidated the AFPRC. From 1994 to 1997 it is these draconian Decrees which helped the AFPRC to consolidate its rule without any sign of protest from those who were opposed to military rule. In fact when we rose up against Decree No 1, we were criticized by leaders of major parties as being hasty and adventurous. The 1997 Constitution did not come into force until the new members of Parliament were elected and the President sworn in. Before that the country was governed under the supremacy of decrees. Even the Presidential and National Assembly elections took place under Decree 78. Hence the 1997 constitution could not be said to consolidate military rule; on the contrary it is the instrument which put an end to the supremacy of decrees and restored Constitutional rule in 1997 when it came into effect. Had the people not approved it, what would guide the return to Constitutional rule?
Suppose there was a boycott of the referendum, what would have been the outcome?
You should recall that the AFPRC wanted to stay in office for 4 years. Hence if the referendum was boycotted the regime could have either restored the 1970 constitution or prolong its stay in office pending the drafting of a new constitution. In My view, the AFPRC consolidated itself in 2 years by using patronage to take over the party, youth leaders and the chairmen and chairwomen of the PPP, NCP and GPP. If they were given more years to come up with an ideal constitution they would have consolidated their position all the more.
On the other hand if the 1970 Constitution was restored, we would have missed many of the positive provisions of the 1997 Constitution which are currently being amended by the APRC government. In my view, once we agree that the provisions of the 1997 constitution are more profound than the 1970 one cannot give any legitimate justification for its rejection at a referendum. Even the Gambia bar association acknowledged the superiority of the provisions of the 1997 constitution over those of the 1970. Needless to say, if there were any forces capable of rising up to protest against the violation of the sovereignty of the people they would have done so when the many provisions of the 1970 constitution were suspended and the supremacy of the decrees asserted or after the referendum when the supremacy of decrees remained until the 1997 constitution came into force and made the decrees to be subordinate to the constitutional provisions. The Gambian people had adequate opportunities to take charge of their sovereignty before the 1997 Constitution came into force. If there was a force capable of leading the people to assert their sovereignty it would have won the Presidential and National Assembly elections or carry out a mass uprising during that period. It is evident that any attempt to attribute the consolidation of the APRC to a constitution which only came into force after the APRC consolidated its electoral machinery during the presidential and National Assembly elections is to replace facts with fiction.
It is claimed that among the opposition parties only PDOIS was allowed to carry out civic education during the coup period. What is you reaction to this?
If Momodou Soma Jobe, who slapped an agric assistant for transporting Suwaibou Touray to explain the essence of the constitution to the people of Jarra is reading this, he would marvel at the lack of information or honesty of some of our critics. The then Attorney General who pestered us to stop our civic education programmes which he deemed to be illegal under the decrees would also appreciate our ability to suffer silently to promote our cause and forgive and forget when we have the upper hand. PDOIS like all other parties was banned. We refused for Foroyaa to die. We never had access to The National Radio to conduct civic education. We relied on the generosity of Radio One FM to conduct non partisan civic education. Foroyaa also produced pamphlets and sent activists to the countryside to educate the mass. Anybody could have done what we did and we constantly call on people who could do a better job to take over but nobody ventured to do so. Now those who conducted everybody’s responsibility under tremendous difficulty are seen to have enjoyed privileges and those who refused to undergo the risks and the hardships are seen to have been deprived from conducting civic education. Justice, where lies thy scales? What are the wages of sacrifice in the Gambia? Castigation and vilification? Nobody gave us privileges during the coup. We were in the trenches fighting for every ground we conquered for our voices to be heard. Instead of people asking what role each political figure played during the coup and then assign new responsibilities to each of them based on merit some accused us of being an ally of the coup makers while others claimed that we got the masses to support a soldiers’ constitution and thus consolidated military rule.
What more do you have to say on the 1997 constitution?
I wrote a memorandum numbering approximately 60 pages to the Constitutional Review Commission stating our views on the debate regarding a new constitution. I have made this a chapter in my book: Ten years of Constitutional rule in The Gambia. Interestingly enough, no reference is made to this by critics to expose our own proposals.
Source: Foroyaa Newspaper Burning Issues
Issue No. 130/2007, 5-6 November, 2007 |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11684 Posts |
Posted - 07 Nov 2007 : 12:59:47
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Interview with Halifa Sallah
Part 8
Foroyaa: Do you have anything to say to people who claim that the people should have rejected the 1997 constitution?
Halifa: They are entitled to their opinion. I simply want to reiterate that the 1997 Constitution did not keep Jammeh and his Armed Forces Provisional Ruling Council in Office. On the contrary, it did put an end to the existence of the Armed Forces Ruling Council. If we have a government today which shows little regard for Constitutional rule, it is not the Constitution which is responsible, but the Gambian people who have not shown much initiative in putting in office a government which would have respected and improved on the constitution. Furthermore, I would like the readers to note that we were not given any privileges to conduct Civic Education. After our arrest and detention for defying decree number four, which banned all dissemination of political ideas, we were tried and ordered not to interfere with the process. Despite this order I wrote a declaration on the Sovereignty of the people and circulated a petition for people to sign which called for a National Conference. All political leaders in the country were given copies. They ignored me. I held a press conference to launch the declaration which was put on a video cassette for circulation. The AFPRC labeled me a saboteur. Infact, one of the volunteers called Musa Manneh was arrested and detained. When I went to the Late Sadibou Hydara to facilitate his release I could recall passing many prominent persons in the queue like the former Chairman of the Kanifing Municipal Council. Mustapha Ceesay was either Permanent Secretary or Deputy Permanent Secretary. They should be able to confirm seeing me in Hydara’s office, even though they may not have known the purpose of my presence. I must admit that he took the things I said regarding the detention of Musa and people like the late Alkalo of Brufut, Pa Khalifa Sano, seriously. They eventually released Musa but dismissed him from the public service. One can imagine how tormented my conscience was to have the future of a person blocked because of carrying out tasks to defend the sovereignty of the people.
Foroyaa: Why were you not arrested?
Halifa: That’s what I asked police Commissioner Williams. I told him that I was responsible for the publication and that my press conference was reported. I argued that if there should be any arrest I should be the one to be arrested. He simply told me that they were under instruction. This is In fact what motivated me to go to Sadibou. Apparently, Sana was in charge of the Public Service and Sadibou promised to see him. Nothing materialised. Many letters were addressed to the Council before and after the demise of Sadibou Hydara but to no avail. If we had any influence over the Council would such a thing occur? The case of Amie Sillah’s brother, Ousman Sillah is another example. Lamin Waa Juwara found Ousman at Janjanbureh Prison. Ousman was detained for no cause. Someone distributed a leaflet condemning the AFPRC and used the name Ousman Sillah at the time of our trial. He was arrested and detained for a long period of time despite many petitions from us to the council. The attitude of the council was to make things difficult for us since we had rejected to collaborate with them and were even making preparations to oppose them. Many people did not know why we remained independent. We have a vision of another Africa in view; an Africa where an empowered and sovereign people will have the authority to carve a destiny of liberty, dignity and prosperity for themselves and for generations yet unborn. Since it was not fashionable for those who are revolutionaries to enlighten the people on democracy, human rights and the rule of law, it was not difficult for the activists of the council to claim that we had abandoned revolution and were obsessed with constitutional niceties instead of accepting the ministerial posts offered by the regime. As some members of the overthrown regime accepted offices, our whole resistance started to be trivialized while those interested in emerging as opponents of the regime also tried to convince those in their camp that we made the coup possible and had made secret agreements with the regime so that we could take over power at a later date.
Only one veteran politician approached me at my office in Kololi after our trial in 1994 to acknowledge that they made a mistake in not giving us solidarity when it was due and that they were paying for it and that is Assan Musa. The rest were trying to consign us into the dust bin before history has made its verdict. We could not be our own defenders at the time because of our desire not to appear to be power hungry. Now that the time is ripe, no stone will be left unturned in clarifying the issues so that the people will increasingly come to the understanding that a genuine revolution is one which puts an end to autocracy and oligarchy and consolidates the Sovereignty of the people. Democracy means in one phrase the power of the people, full stop. We rose to link words and practice and shall never tarry until we link words to practice on our soil.
Foroyaa: What is your final word on this subject so that we can move to your relation with Sidia on the issue of the presidency?
Halifa: I want to remind people that Decree number one imposed a monarchy on the Gambia. It abolished constitutional rule. All those who participated in the government accepted to do so under the decree. We had not seen or heard any open defiance against the decrees other than the open stand we took. These decrees continued to guide the affairs of the country until 16th January 1997 when the 1997 Constitution came into force. The provisions of the Decrees which governed the country through a transition up to the presidential and national assembly elections can be summarised as follows:
1) The provisions of the Constitution of the Republic of The Gambia, 1970 mentioned in Schedule I of this Decree are hereby suspended.
(2) Subject to this and any other Decree, the provisions of the Constitution of the Republic of The Gambia, 1970 which are not suspended by subsection (1) shall have effect subject to the modifications specified in Schedule II of this Decree.
4. Notwithstanding anything contained in this Decree, the provisions of the Constitution, of the Republic of The Gambia, 1970 that are not suspended by this Decree shall apply in so far as they do not conflict with a provision of this Decree or any other Decree.
5. The validity of this or any other Decree shall not to be enquired or questioned in any court of law.
These provisions consolidate the abrogation of the republic, its institutions and the sovereignty of the people. This is what the opponents of military rule should have exposed and combated like we did.
On the other hand chapter 1 of the 1997 Constitution states that the Gambia is a sovereign Republic. It adds; The Sovereignty of the Gambia resides in the people from whom all organs of government derive their authority and in whose welfare and prosperity the powers of government are to be exercised in accordance with this constitution.
Section 4 of the 1997 Constitution states that: The Constitution is the supreme law of the Gambia and any other law found to be inconsistent with any provision of this constitution, shall to the extent of the inconsistency, be void.
Section 5 adds that:
A person who alleges that
a) any act of the National Assembly or anything done under the authority of an act of the National Assembly;
b) any act or omission of any person or authority, is inconsistent with, or is in contravention of a provision of the constitution, may bring an action in a court of competent jurisdiction for a declaration to that effect.
2 The court may make orders and give directions as it may consider appropriate for giving effect or enabling effect to be given, to such a declaration and any person to whom any order or direction is addressed shall duly obey and carry out the terms of the order or direction. Hence it is clear that the 1997 Constitution restores the Sovereignty of the people and the supremacy of the Republican Constitution. I cannot comprehend how anybody could have supported its rejection and leave the people to continue to live under the supremacy of Decrees.’
Hence if people fail to elect people who would respect the provisions of the Constitution and even improve on it let them blame themselves and not the Constitution.
To be Continued
Source: Foroyaa Newspaper Burning Issues
Issue No. 131/2007, 7 – 8 November 2007 |
A clear conscience fears no accusation - proverb from Sierra Leone |
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Momodou
Denmark
11684 Posts |
Posted - 09 Nov 2007 : 18:46:29
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Continuation of interview with Halifa Sallah
Part 9
You and Sidia have been the focal points of PDOIS. Recently you stood as a presidential candidate and some people have been commenting on your relation. Can you throw light on this?
My first mission up country as a Social welfare officer in 1978 was in Wuli. I went to deal with a fire incident at Medina. I proceeded with Sainey Snghateh who was the MP for the constituency at the time to his village, Foday Kunda where I had the most remarkable experience of my life. I met an old man by the name of Pa Foday. He spoke broken English. I noted everything he said in my diary. As Amilcar Cabral had argued the African intellectual could not truly serve his people until he/she returns to the source, until he /she commits class suicide. I made it a principle to take sociological data of every village I visited. I took note of the social structure; some historical facts; the level of awareness of the population; the land tenure system and the social amenities available such as schools, health centres, the number of wells and other infrastructure. Pa Foday gave me his account as a slave and how he was sent to Burma because of his physical strength. He explained his heroic deeds and how their European commanders admired them because of their valour. To cut matters short in order to get to the point Pa Foday was promised the heaven and the earth by his commanders for his bravery only to be returned to Foday Kunda to continue to be a slave. I was also amazed by the sense of organisation of the youth led by Hamme if my memory served me right: They had organised themselves into groups with village youth ministers who carried out their different responsibilities and took their roles very seriously. I developed friendship with the Youngman until he went abroad. I visited the school at Sutu koba where I met the late Mamadi Jabai who eventually became a PDOIS candidate. My notes were burnt by an innocent loved one when we were arrested in 1983 thinking that it could implicate me. A whole sociological library regarding the Gambian country side was reduced to ashes. When I started the Maggi elek programme on radio and was approached by Lalo Samateh to do it in Mandinka I had to get a member of our staff from Wuli, Mondo Singhateh to help me with the translation.This is why the Mandika I speak is of Wuli origin. At that time I did not know Sidia. When consultation began to establish PDOIS and Sam told me that he had consulted with him I became very inspired that somebody from that neglected part of the country had accepted to be a pioneer of a struggle to liberate the poorest of the poor. When Sidia accepted to resign from the Civil service I personally felt that PDOIS would find in Sidia an Ideal Presidential candidate who would know what deprivation of a people really meant. Fortunately we all saw eye to eye and Sidia was elected to preside over the affairs of the Central committee while I was elected to look after the day to day affairs of the party. We wanted to announce the development regarding the composition of the executive but Sidia counselled that we should not do that since each of us would have to test ourselves to know whether we could be equal to the task or not. More over each was expected to fight shortcomings so that the people will find us to be credible when they found out who constituted the party leaders. This is why we ended up transforming party offices into an internal matter which led some members of the previous regime to accuse PDOIS of not having leaders.
Is that why Sidia continued to be PDOIS’Presidential Candidate?
There is more to it than that. Any member of the Party could present himself as a Candidate. People often do not consider matters in a sequence. Prior to the coup Sidia stood as a presidential candidate only once, in 1992 to be precise. The results were not unexpected because of the work of liberating minds we had to shoulder. We had little resources and no Political patrons. We were opposed to cheque book politics and had to move from village to village to convince people. We knew that the work will be slow but sure. It is important to narrate what gave us confidence that we were changing the face of Gambian politics with tremendous resistance from those who did not want change. Every attempt we made to clarify issues they would come to distort and disfigure our programmes. When we had succeeded in gaining foot hole in Wuli and had intention to move in the same way in other areas the coup occurred. Many of the strong youths who supported us and were keen in establishing party branches thought that revolution had come and that we were going to join the band wagon. They abandoned us and supported the coup. When they discovered that we had rejected the ministerial posts offered by the coup makers. We therefore had to start from scratch again in 1996 under totally different circumstances.
Would you clarify why Gambian intellectuals are not promoting PDOIS?
This is a matter of opinion. Many also were in readiness to sacrifice. First and foremost it is important to tell you the type of people we started with. In the first Parliamentary election in 1987 we put up five Candidates Sidia Jatta, Sam Sarr, Dr. Baboucarr Gaye, Abas Manneh and Halifa Sallah.
To be continued
Source: Foroyaa Newspaper Burning Issues
Issue No. 132/2007, 9 - 11 November, 2007 |
A clear conscience fears no accusation - proverb from Sierra Leone |
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