Honourable minister of Finance & Economic Affairs at the National Assembly to clarify issues of concern to National Assembly Members

Honourable minister of Finance & Economic Affairs at the National Assembly to clarify issues of concern to National Assembly Members

Honourable minister of Finance & Economic Affairs at the National Assembly to clarify issues of concern to National Assembly Members

The Honourable Minister, Mamburry Njie was, on Wednesday 8th July, 2020 called at the National Assembly to give answers to questions raised by Parliamentarians on issues of finance and state of affairs of the Gambia’s economy. Honourable Njie was poised to clear their doubts on the finances received and spent by the government as well as other regulations that his Ministry is overseeing.

To begin with, the Honourable Member for Bakau required the Honourable Minister of Finance to tell the august Assembly about the Government’s preparedness, and position for the much talked about West Africa single monetary currency dubbed “the Eco”. In his response, Honourable Njie voiced out that the Government of the Gambia is still committed to ECOWAS single currency and as part of the set macroeconomic convergence criteria; “the Gambia continues to meet three of the four primary convergences and one of the two secondary convergences since 2017”, he told deputies. However, he pointed out to them that The Gambia is missing the Budget deficit and debt to GDP ratio; yet this has placed the Gambia among the best performing countries towards the regional integration process of the single currency.

In response to the question raised by the Member for Kiang West on the total grants received as pledges for the implementation of the National Development, Honourable Njie indicated that the implementation of the National Development Plan is progressing and so far a total of US$199.57 million has been disbursed towards its implementation, this represents a 12 percent disbursement rate of the pledged amount.

To shed light on the state of debts owed by some State-Owned Institutions to the Social Security and Housing Finance Corporation as demanded by the Deputy Speaker, the Honourable Minister pointed out that as at end June 2019, the following institutions owed the corresponding amounts as follow: National Water and Electricity Company (NAWEC) – D892,838,000; Gambia Radio and Television Services (GRTS) – 46,950,000; Gambia Civil Aviation Authority (GCAA) – D92,600,000; Gambia International Airline (GIA) – D15,982,000; Gambia Groundnut Corporation (GGC) – D223,298,000; Government of The Gambia (GOTG) – D421,577,000. The total debts amounted to D1,693,245,000.

On the statistical data on rice duty from 2017/2018 and the amount lost in 2019 due to levy waived on rice by the Member for Illiasa, the Honourable Minister told the Assembly that taxes collected on rice imports for 2017 and 2018 amounted to D119 million and D56.80 million respectively. Whilst revenue lost to waiving taxes on rice amounted to D200 million in 2019. In the same vein, the Illiasa Deputy requested clarification on the statistical data on rice imported into the country through container and bulk cargo for the years 2017- 2019. In his response, Honourable Njie postulated that in 2017, One hundred and six million, three hundred and forty-five thousand and sixty point eight, one (106,345,060.81) kilograms and 2.13 million bags of 50kg were imported. In 2018, one hundred and ninety-five million, five hundred and eighty-two thousand, six hundred and fifteen point four, five (195,582,615.45) kilograms and 3.9 million bags of 50kg were imported. In 2019, one hundred and eighty-five million, six hundred and eighty-five thousand, two hundred and seventy-two point five, six (185,685,272.56) kilograms and 3.7 million bags of 50 kg were imported.

Regarding the amount of money generated since the introduction of the Value Added Tax (VAT) system and the impacts it has on the economy, Minister Njie told the august assembly that VAT or Value Added Tax was introduced in the Gambia on the 1st January 2013 following the approval of the Gambia Income and Value Added Tax Act, 2012 by the National Assembly on 27th June 2012. He then proceeded to give the following figures in the corresponding years: 2013-D695.3 million; 2014-D723.7 million; 2015-D819.0 million; 2016-D893.8 million; 2017-D880.0 million; 2018-D1,200 million; 2019-D1,400 million.

On revenue collected by the Gambia Revenue authority (GRA) from 2017 to 2019, the Hon. Minister posited that in 2017, 2018 and 2019 the revenues collected were D7,971.50 million, D9,133 million and D11,037.2 million respectively.

In response to the Member for Upper Fulladu West on the level of budget execution of all Ministries, Departments and Agencies (MADs) from January – September 2019 and the compliance level as per the approved budget allocations of 2019, the Honourable Minister told National Assembly Members (NAMs) that as at end September 2019, there was an overall budget execution rate of 61 percent. A detail of this can be found in the table below:

Annex 1, 2019 Budget Execution Report at end September

BE

APPROVED BUDGET GLF 2019

JAN-SEP 2019 EXP.

% OF BUDGET ABSORBED

BE01 - Office of The President

697,663,751

           446,523,348

64%

BE02 - National Assembly

139,273,419

          74,674,226

54%

BE03 – Judiciary

164,091,692

          87,558,081

53%

BE04 - Independent Electoral Commission

29,800,723

          16,792,990

56%

BE05 - Public Service Commission

9,900,000

          5,260,612

53%

BE06 - National Audit Office

59,426,230

          37,259,447

63%

BE07 - Ministry of Defence

726,557,843

         517,563,559

71%

BE08 - Ministry of Interior

996,904,978

           710,902,031

71%

BE09 - Ministry of Tourism and Culture

43,039,165

             25,443,824

59%

BE10 - Ministry of Foreign Affairs

1,257,882,799

           613,983,879

49%

BE11 - Attorney General's Chambers & Ministry of Justice

346,162,635

           204,727,719

59%

BE12 - Ministry of Finance

837,127,837

           715,823,979

86%

BE13 - Pensions and Gratuties

375,678,000

           196,740,613

52%

BE14 - Ombudsman

20,241,000

             12,394,690

61%

BE15 - Centralized Services

1,340,000,000

           600,343,013

45%

BE16 - Ministry of Local Government and Lands

175,381,997

             59,337,457

34%

BE17 - Ministry of Agriculture

441,536,840

           259,305,827

59%

BE18 - Ministry of Works,Construction & Infrastructure

327,949,083

           130,238,007

40%

BE19 - Ministry of Trade,Industry & Employment

111,062,020

             60,965,556

55%

BE20 - Ministry of Basic and Secondary Education

2,069,170,828

        1,635,486,546

79%

BE21 - Ministry of Health and Social Welfare

1,164,067,500

           750,873,973

65%

BE22 - Ministry of Youth & Sports

141,276,190

             61,500,432

44%

BE23 - Ministry of Enviroment, Climate Change & Nat. Resources

252,645,495

           104,924,397

42%

BE24 - Ministry of Comm, Info & Info Tech

63,577,479

             14,236,634

22%

BE25 - Ministry of Fisheries, Water Res. & NA Matters

62,420,000

             26,142,297

42%

BE27 - Ministry of Higher Edu., Research, Sci. & Tech.

341,339,522

           181,346,188

53%

BE29 - Ministry of Petroleum & Energy

56,951,387

             22,090,431

39%

BE31 - Ministry of Women, Children and Social Welfare

58,285,475

             18,051,064

31%

BE50 - National Debt Service

4,789,724,934

        2,813,860,790

59%

Grand Total

17,099,138,822

      10,404,351,619

61%

 

When the Member for Upper Fulladu West further asked why duty charges worth of D13 million were levied on KMC garbage disposal trucks that was in the direct interest of the general public, Honourable Njie emphasised that the provision of the KMC garbage trucks was a Public Private Partnership arrangement between KMC and ESPACE motors and a review of the agreement indicated that the trucks were the property of ESPACE motors until such a time KMC completes payment (36 months) and as such, duty exemption could not be granted under such a scheme.

Concerned with the evolution of the Digital Economy in many countries and its significant contributions to a country’s GDP, as well as its potential for use in terrorist financing and money laundering, the Honourable Member for Upper Saloum sought the Honourable Minister to clarify whether the Central Bank of The Gambia has policies and regulations in place for the monitoring of the digital Economy especially mobile money and consumer protection. In his statement, Honourable Njie brought to his notice that the government does recognize the risks associated with digital economy, and it is in this light that the government had set up the Finance Intelligence Unit (FIU) and The Gambia Consumer, Competition and Protection Commission (GCCPC) to monitor any threats arising from such acts. And regarding mobile money, “the Banking Supervision Department of the Central Bank of the Gambia is closely monitoring operators to ensure risks emanating from such are contained” he added.

Reacting to the question posted by the Member for Serrekunda on how much has been accrued from the Gateway since the Barrow administration took over, the Minister responded that the amount collected from the Gateway since the Barrow administration took over is US$6.2 million. On government travelling from 1st January to October 2019, “a total of D269, 745, 723.00 was spent on travel expenses, accounting for 80% of its approved budget” the Minister responded.

The Member for Niamina East quoted that the approved budget for the National Youth Services Scheme (NYSS) is 15,000,000.00, and 50% of the sum was released as personnel emoluments for staff. To know the budget balance, the Honourable member sought clarification from the Finance Minister, who reported that the approved estimates for NYSS as at 31st December 2019 stood at D11, 103,460.00 as opposed to the initial approved estimates of D15, 232,129.00 which he indicated are as a result of virement to meet budget shortfalls. “In this regard, the sum of D11,103, 460.00 has been released and spent as at 31st December 2019 which represent 100% absorption rate for NYSS budget, thereby having zero budget balance” he asserted

When required to bring to table the total sum of money acquired from the sale of The Gambia diplomatic passports since the new government assumed office by the Member for Niamina East, Honourable Njie humbly requested him to kindly redirect this question to the Ministry responsible for issuing of Diplomatic passports which is in a better position to give clear answers.

To curb the far reaching inflationary ramifications the simultaneous circulation of new and old banknotes in the market could cause, the Wuli East Member had urged the Honourable Minister to reveal to deputies what steps his Ministry has taken to address the issue with a view to end the practice. In his response, the honourable Minister told the august gathering that the Central Bank of the Gambia has a ‘co-circulation policy’ but was quick to note that the CBG has issued a circular to all commercial banks to return old notes (soiled notes) as there is adequate stock of new notes for circulation.

As regards inflationary pressure, he informed the august Assembly that the currency in circulation is constantly being monitored by the Central Bank of The Gambia and as such, the co-circulation of currency does not pose any inflationary pressure in the economy.

“Why are Gambians forced to have vehicle insurance and yet failed to be compensated when eventualities happen?” The member for Kiang East demanded answers. “Vehicle insurance is mandatory as per insurance laws of The Gambia, and as such all vehicle owners are required to insure their vehicles. With respect to refund or compensation, the same law guarantees compensation where appropriate and victims are responsible to pursue insurance companies to ensure compensations are made”. The Honourable Minister responded.

Regarding the two aircrafts grounded at the Banjul International Airport for almost 3 years now, the Minister told Deputies that the two air planes have already been sold at the tune of US$240,000.00 in May 2018.

“The Public Utilities Regulatory Authority (PURA), had issued a notice that effective 10th June 2019, the government of The Gambia would introduce new levy for sport development on the Telecommunications and the levy will be charged as follows:

  • US$0.02 (two cents) per minute on all international incoming calls into the country
  • 50 bututs (fifty bututs) per minute on all local calls or charge a levy of 1% on airtime purchase.” The Member for Brikama highlighted.

Further speaking, he was interested to know the total amount raised since the introduction of the levy and whether the fund generated from the levy will be judiciously utilized for the development of sports. Honourable Njie informed that since the introduction of the new sport levy, a total of D43.6 million has been collected and transferred to the Ministry of Youth and Sport.

On the issues of companies having Public Private Partnership (PPP) agreements with the government of the Gambia, signatories to these agreements and the legal framework the Directorate relies on to promote PPP in the country, Minister Njie responded that the legal frameworks used by the Directorate of Public Private Partnerships in promoting PPPs in The Gambia are as follow:

  • Public Private Partnership Policy (PPP) 2015
  • The PPP Operational Guidelines 2015
  • PPP Bill 2020 (currently on the drafting stage by the Ministry)

 

Companies that have PPP Agreements with The Government

NO

NAME OF PPP CONTRACT

PUBLIC PARTNER SIGNATORY

PRIVATE PARTNER SIGNATORY

1

Digital Gambia Limited (DGL) EX-CAF

Digital Gambia Limited

EXCAF Telecom Company of Senegal

2

AGUA Gambia Ltd

NAWEC

AGUA Gambia Ltd

3

Comfort Quality Services Ltd

Ministry of Interior (MOI)

Comfort Quality Services

4

Nick TC- Scan

Gambia Revenue Authority

Nick TC- Scan

5

Africard Gambia

Ministry of Interior (MOI)

Africard

6

Securiport

Ministry of Interior (MOI)

Securiport LLC

7

Semlex Europe SA

Ministry of Interior (MOI)

M. Ralph Hajjar Semlex Europe SA

8

GIETAF

Gambia Investment and Export Promotion Agency (GIEPA)

TAF Construction

 

Finally, on the last presidential tour, the Honourable minister told deputies that a total of D4, 791,105 was spent. In a similar query on the implementation of the vehicle policy, Hon Njie informed Parliamentarians that the government vehicle policy is currently at the Ministry of Works, Transport and Infrastructure for review and once a clean draft is available it will be shared with stakeholders. The Session concluded.

Ebrima S. Jallow

Information Officer

MOFEA

7336236/5034521/9555178

esjalloe247@gmail.com