By Fatou Sillah
Key state-owned enterprises (SOEs) in The Gambia have failed to repay a combined total of GMD 1.82 billion in government loans, according to the 2024 Auditor General’s Report released this week. The findings raise concerns over the government’s oversight of public funds and the financial management of these entities.
The report highlights that the National Water and Electricity Company (NAWEC) had an outstanding principal of GMD 1,116,575,842.37, with accrued interest of GMD 169,917,346.49. Despite payments totaling GMD 53,993,372.40, the company still owes GMD 1,232,499,816.45.
Similarly, the Gambia Civil Aviation Authority (GCAA) owes GMD 129,481,708.50 in principal, with interest of GMD 302,490,423.31, leaving total arrears of GMD 431,972,131.81. GAMTEL, the national telecommunications company, has an outstanding principal of GMD 160,207,781.25 that remains entirely unpaid.
The Auditor General’s report attributes the defaults, in part, to inadequate monitoring systems within the Ministry of Finance and Economic Affairs (MoFEA), which oversees on-lending agreements with these enterprises.
“This weakness delays the detection of defaults, increasing the risk of financial loss. It also undermines compliance with statutory requirements and impairs the transparency and accountability of the portfolio management process,” the report states.
To address these risks, the report recommends that MoFEA implement stricter controls, including automated tracking of loans, regular borrower evaluations, and more proactive management of arrears. It also urges that SOEs restructure their obligations or seek market-based financing rather than relying on automatic government bailouts. Diversifying the government’s credit portfolio is suggested as a strategy to reduce exposure to high-risk loans.
Responding to the report, the Permanent Secretary at MoFEA noted that much of the on-lending had occurred before the current framework for monitoring loans was implemented.
“Nonetheless, we are monitoring them, and a formal request was sent,” he said.
The findings underscore the ongoing challenges in managing public sector debt and ensuring accountability in state-owned enterprises, which play a critical role in The Gambia’s infrastructure and services.