Audit Flags 9.46 Million Dalasis in Long-Overdue Debts at Gambia Printing and Publishing Corporation

By Fatou Sillah

The Gambia Printing and Publishing Corporation is carrying more than 9.4 million dalasis in long-outstanding debts, most of them more than three years old, according to audited financial statements presented to lawmakers.

The corporation’s draft financial statements for the year ended Dec. 31, 2022, show total trade receivables of 23,361,017 dalasis. Auditors, however, identified 9,462,712 dalasis of that amount as bad and doubtful debts, raising concerns about the accuracy of the reported figures.

“We are concerned that the trade receivables balance of D23,361,017 in the 2022 draft financial statements has very long outstanding balances amounting to D9,462,712 (bad and doubtful debts), most of which are over three years,” the audit report states.

The findings were disclosed when the corporation appeared before the Public Enterprise Committee of the National Assembly to present its audited accounts.

Auditors noted that many of the overdue balances are owed by government institutions, including parastatals, as well as private businesses and individuals. They also faulted the corporation for failing to make a substantial provision for the aging debts, citing the absence of a clear provisioning policy.

“Besides, we are concerned that no substantial provision has been made in respect of these long outstanding balances due to lack of a provisioning policy,” the report said.

The auditors added that a review of board and management meeting minutes did not reflect sustained or robust discussions about debt recovery during the year under review.

As a result, the report warned that the trade receivables balance could be materially misstated, noting that at least 40.5 percent of the total is classified as bad and doubtful.

Among its recommendations, the audit urged the board and senior management to make debt recovery a standing agenda item at every scheduled meeting and to develop strategies—including legal action—to pursue long-outstanding accounts.

In its response, management said it had “consistently written to private individuals and businesses that owed the corporation for more than three years” and maintained that provisions for outstanding debts were being reflected in the financial statements.

The corporation added that it is considering legal action against some debtors and said that any provisions previously made would be reversed once the debts are recovered.