Audit Exposes Fraud & Mismanagement in Banjul City Council’s EU-Funded Project

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By Alieu Ceesay

A scathing audit by The Gambia’s National Audit Office (NAO) has uncovered severe contract mismanagement and potential fraud in the Banjul City Council’s (BCC) handling of the EU-funded Oostende-Banjul City Link Project. The renovation of Crab Island buildings, a flagship initiative, has been plagued by financial irregularities. Over GMD2.5 million was paid to a contractor who failed to deliver, leaving the project incomplete.

The audit, released to the National Assembly public finance committee, details how BCC awarded a GMD5.7 million contract to Jalakolong Construction Company on December 31, 2021, despite the firm’s lack of registration with the Gambia Public Procurement Authority (GPPA), a clear violation of procurement regulations.

Jalakolong received GMD2,507,880.68 but made little progress, prompting BCC’s warning letter on May 17, 2022. The contractor later cited bankruptcy in a June 27, 2022, letter requesting a bailout.

Further investigation revealed that Jalakolong Trading Enterprise, a sole proprietorship registered in May 2021, had never renewed its registration or filed annual returns. The NAO report suggests the company may have been a front to divert public funds. “The company was clearly not in a position to deliver,” the audit stated, raising concerns of deliberate fraud.

BCC terminated the contract on August 18, 2022, and re-awarded it to ECOFARMS under the same terms. However, as of April 2024, the Crab Island renovation remains unfinished, casting doubt on BCC’s oversight capabilities. The NAO has urged BCC to pursue legal action to recover the GMD2.5 million paid to Jalakolong and implement stricter contract management to prevent future losses.

The Oostende-Banjul City Link Project, part of the EU-funded Partnership for Sustainable City Development launched in December 2019, aimed to enhance Banjul’s governance, waste management, and urban infrastructure. The Crab Island renovation was a cornerstone of this initiative, intended to revitalize public spaces. Instead, it has become a symbol of mismanagement, undermining public trust.

BCC acknowledged the audit findings in response, stating, “Henceforth, the Council will ensure compliance with GPPA regulations… Our legal personnel have been contacted to recover the funds.” The council has pledged to adopt milestone-based payments and regular progress reviews to safeguard future projects.

The NAO’s recommendations emphasize accountability, urging BCC to enforce rigorous procurement processes and conduct thorough background checks on contractors. The audit serves as a wake-up call for local authorities managing donor-funded projects, highlighting the need for transparency to protect public resources.

As Banjul grapples with the fallout, residents and stakeholders call for swift action to complete the Crab Island renovation and restore confidence in the city’s leadership. The EU, which funded the project until its closure in November 2022, has yet to comment on the audit’s findings.

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