Audit Flags D857M Kiang West Road Contract Awarded to Gai Enterprise Without Competitive Bidding

Kiang West Roads

By Fatou Sillah

The 2023 Auditor General’s Report has raised concerns over the award of the Kiang West Road Phase 2 contract, worth D857,841,841.15, to Gai Enterprise without subjecting the project to competitive bidding.

According to the report, Gai Enterprise had already been granted the Phase 1 contract for the same road project—covering 39 kilometers and valued at D349,759,040.00—just six months earlier.

A review of the Gambia Public Procurement Authority’s (GPPA) “No Objection” approval indicates that the direct award of Phase 2 was justified on grounds of economies of scale, maintaining unit rates, compatibility, avoiding additional mobilization costs, and the need for timely project execution.

However, auditors argued that given the size and value of the Phase 2 project, it should have been subjected to open competitive bidding to ensure transparency, value for money, and fair competition.

“At the time of awarding the Phase 2 contract, Phase 1 had barely commenced, indicating that urgency may not have been a justified basis,” the report stated.

The audit further observed that unit rates were later increased following a reported 40% rise in international market prices—undermining the original justification of maintaining consistent rates.

“As such, the rationale underpinning the direct award appears to have been significantly altered,” the report added.

The report warned that bypassing competitive bidding for a contract of such magnitude exposes the process to risks of noncompliance with GPPA regulations, potential favoritism, and inefficient use of public funds.

Auditors recommended that all future contracts of significant value and scope be subjected to open and competitive bidding, in line with procurement laws.

“No management response; therefore, the issue remains unresolved up to the time of finalizing this management letter,” the report concluded.