By Fatou Sillah
The Governor of the Central Bank of The Gambia (CBG) has confirmed that Mega Bank was sold for US$15.25 million to KM Holdings, while D650 million in government funds had earlier been injected to clear the bank’s toxic assets, including non-performing loans.
The disclosure was made during the Finance and Public Accounts Committee’s (FPAC) consideration of the government’s accounts for the period 2021 to 2023.
The 2023 Auditor General’s report had flagged concerns over an outstanding balance of D24,442,558.89 linked to the sale of Mega Bank and recommended that the amount be properly disclosed, with management providing supporting evidence.
Providing clarification to the committee, the CBG Governor said the figure referenced in the audit relates to consultancy fees paid to DT Associates, which were transferred through Guaranty Trust Bank.
“Mega Bank was sold for $15.25 million to KM Holdings. The amount stated in the audit relates to the commission paid to the consultant, DT Associates, and the amount was transferred to Guaranty Trust Bank, and all those details will be given to you,” he said.
He further explained that the government’s D650 million intervention was used to settle Mega Bank’s toxic assets, primarily bad loans, and that partial recoveries have since been made.
“The D650 million that the government put into Mega Bank was to clear the toxic assets of Mega Bank, the bad loans. Sixty million has been transferred to the government, and currently, twenty million is sitting in that account on behalf of the government,” he said.
However, auditors informed the committee that earlier documentation provided by the Central Bank was unclear and incomplete, making it difficult to verify the disclosures contained in the report.
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