FPAC Calls on Accountant General to Clarify D62.5 Million in Cancelled Cheques Withdrawn from Government Accounts

Photo Caption: Alagie S Darboe, Chairperson of the FPAC Committee

By Fatou Sillah

The Finance and Public Accounts Committee (FPAC) of the National Assembly has recommended that the Accountant General’s Department (AGD) clarify the status of D62.5 million in cancelled cheques that were nonetheless withdrawn from government bank accounts.

In its latest report, presented to Parliament by Committee Chairperson Hon. Alagie S. Darboe, FPAC directs the AGD to account for D62,505,523.58 in cheques recorded as cancelled or voided in the Integrated Financial Management Information System (IFMIS), but which were still withdrawn from the Treasury Main Account (TMA).

According to the report,“A comparison of the cancelled cheques for 2020 against the TMA bank statement revealed that cheques amounting to D62,505,523.58 were reported as cancelled or voided in the IFMIS but were withdrawn from the bank.”

The Committee noted that no physical copies of the cheques were provided for verification, despite requests. Additionally, payments amounting to D1,921,215.58 were marked as cancelled but were also withdrawn, raising serious concerns over the integrity of financial records.

FPAC has given the AGD 30 days from the adoption of the report to provide documentary evidence clarifying the status of these cheques. Failure to comply, the Committee warns, will result in the matter being referred to the police for investigation.

The report further highlights several financial irregularities, including unauthorized virements totaling D79,058,793 that were used to create new government posts across sectors—actions that contravene existing Financial Regulations.

“The Committee noted that twenty (20) virements amounting to D79,058,793 were made within and across sectors to create new posts contrary to the Financial Regulations.”

FPAC recommends that the Minister of Finance desist from approving any virements intended to create new positions not included in the approved manpower budget. The Committee also urges the Personnel Management Office (PMO) to improve planning to eliminate the need for such virements.

FPAC also criticized the Ministry of Finance and Economic Affairs (MoFEA) for failing to provide documentation related to the preparation of the 2020 national budget.

“Documentations to ascertain whether the 2020 Budget for the Government of the Gambia was prepared in accordance with the Call Circular guidelines on the implementation of Program-Based Budgeting were requested, but none were provided in contravention of the Constitution and Financial Regulations,” the report states.

The Committee has recommended that MoFEA immediately furnish auditors with the requested documents for verification. If the information is readily available, as claimed by the Ministry, FPAC asserts that it should have been presented without delay.

The Committee’s review also revealed that virements totaling D31,017,356 were made across budget entities without informing the affected entities—a clear breach of Section 29(4) of the Public Finance Act, 2014.

“This is non-compliance with the Laws and regulations and demonstrates MoFEA’s failure to adhere to established procedures when virements are made across budget entities.”

The Committee strongly recommends that the Minister of Finance and Economic Affairs strictly adhere to Section 29(4) of the Public Finance Act, 2014, which mandates prior consultation with Vote Controllers of affected budget entities before any virements are made. Furthermore, the Committee urges that the practice of executing virements without notifying the relevant entities must cease entirely by the end of 2024.

According to the report, a review of records from various Ministries, Departments, and Agencies (MDAs) conducted by the Auditors at the Ministry of Finance and Economic Affairs (MoFEA) revealed that virements totaling D246,223,158 were carried out within and across budget entities. However, there was no evidence that these transfers were approved by the Minister, as required under the Financial Regulations.

In response, the Committee recommends that MoFEA submit documented proof of ministerial approval for these virements to the Auditor General within 30 days from the adoption of the report. Failure to comply will result in the matter being referred to the police for further investigation.

Additionally, the Committee highlights discrepancies identified during the reconciliation of the Below-The-Line (BTL) Cash Book and the Basket Account, which is used for special project funding. The review revealed unresolved differences totaling D17,588,719.15 between individual BTL project account balances and the Basket Account.

To address this, the Committee recommends that the Accountant General investigate these discrepancies and provide a detailed explanation to FPAC. It further urges the Accountant General’s Department to ensure that all BTL funds received during the year are properly accounted for and transparently reported, given that these are public funds.