BCC Licensing Manager Reveals D500,000 Revenue Discrepancy Amidst Financial Oversight Failures

By: Fatou Krubally

The Licensing Manager of the Banjul City Council (BCC), Pa Modou Ndaw, rendered a  testimony at the Local Government Commission of Inquiry (LGCI) on Monday, revealing significant revenue discrepancies and highlighting systemic issues within the council’s financial oversight mechanism.

In his testimony, Ndaw disclosed a concerning incident from 2022 involving a D500,000 shortfall in revenue collections. He explained that this substantial amount, generated from business license fees, was collected but never deposited into the council’s official bank account. An internal investigation traced the missing funds to a revenue collector who had misappropriated the money for personal use, exploiting the council’s inadequate monitoring systems.

Ndaw elaborated on the council’s reliance on manual record-keeping for revenue transactions. This outdated system, he noted, was prone to human error and made it challenging to ensure accuracy in financial reporting. The absence of automated processes not only increased the likelihood of discrepancies but also hindered timely detection of financial irregularities.

When questioned about the council’s audit practices, Ndaw acknowledged that regular financial reconciliations were seldom performed. He attributed this lapse to an understaffed internal audit unit, which struggled to keep up with the volume of transactions requiring oversight. This deficiency, he suggested, created an environment where financial mismanagement could occur without prompt detection.

Lead counsel Patrick Gomez probed further into the council’s procurement procedures. Ndaw admitted that several contracts were awarded without following the mandated competitive bidding process. He cited a 2023 example where a waste management contract, valued at D2 million, was granted to a company owned by a relative of a senior council official. This bypassing of standard procurement protocols raised concerns about potential conflicts of interest and favouritism within the council’s operations.

Ndaw’s testimony also shed light on issues related to staff remuneration. He revealed that salary increments and allowances were often implemented without proper authorization from the relevant oversight bodies. In one instance, council executives approved a 25% salary increase for themselves in 2021 without consulting the Local Government Service Commission, as required by regulations. This unauthorized action not only breached established protocols but also highlighted a lack of accountability among the council’s leadership.

Addressing the council’s financial management tools, Ndaw admitted the absence of critical instruments such as a fixed assets register and a comprehensive financial manual. This deficiency, he argued, contributed to the council’s inability to track assets effectively and maintain financial discipline. Without these essential tools, the council lacked a clear framework for financial operations, increasing the risk of mismanagement.

Ndaw’s testimony also touched on the broader implications of these internal issues. He suggested that the lack of transparency and accountability within the BCC could erode public trust and hinder the council’s ability to effectively serve the community. The systemic problems highlighted in his testimony underscored the need for comprehensive reforms to address the root causes of financial mismanagement.

The revelations from Ndaw’s testimony paint a troubling picture of the financial operations within the Banjul City Council. The D500,000 revenue discrepancy, coupled with systemic failures in financial oversight, procurement, and staff remuneration, highlights the urgent need for reform. As the Local Government Commission of Inquiry continues its investigation, these findings underscore the necessity for enhanced transparency, accountability, and adherence to established protocols to restore public trust in local governance.

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