By Fatou Sillah
The National Assembly’s Finance and Public Accounts Committee (FPAC) has directed the Department of Geology to take immediate steps to recover D4,875,062.51 in outstanding black sand mining royalties owed by GACH Mining Company to the Government of The Gambia.
The directive follows FPAC’s review of the Auditor General’s reports, which revealed discrepancies in royalty payments made by the mining company during the period under review.
According to the committee’s findings, GACH Mining exported 621 containers of black sand, amounting to 18,494.53 tonnes. Under the terms of its agreement with the government, the state was entitled to a 60 percent share of the proceeds, totaling $832,253.85.
However, an examination of bank records showed that only $739,818.08 had been paid in royalties, leaving an outstanding balance of $92,435.77, equivalent to D4,875,062.51.
In its report, FPAC recommended that the Department of Geology engage GACH Mining Company and ensure the outstanding amount is settled within 45 days of the report being tabled before the National Assembly.
“The committee recommends the Geological Department engage GACH Mining Company to settle the outstanding balance to the government in line with the agreement and details furnished to FPAC for verification within 45 days after the tabling of the report,” the committee stated.
FPAC also requested that the Department of Geology submit the contractual agreement between the government and GACH Mining Company for the committee’s review and verification within the same 45-day period.
Beyond the issue of unpaid royalties, the committee raised concerns over the absence of documentary evidence showing that black sand mining royalty tariffs had been formally approved by the relevant authorities.
According to FPAC, the lack of approved tariff structures has led to inconsistencies in the application of royalty rates.
“The committee noted a lack of evidence for approval of royalty rates, resulting in inconsistent rates being applied,” the report noted.
To address the matter, FPAC recommended that the Department of Geology work closely with its supervising ministry to ensure that all sand mining royalty tariffs receive the necessary approvals from the appropriate authorities. The committee emphasized that this would prevent the discretionary application of rates and promote greater transparency and accountability in the management of the country’s mineral resources.
The committee further directed the department to provide evidence of the approved royalty tariff framework to FPAC within 60 days after the report is tabled.
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