Auditors Question Government's Failure to Deduct Tax on Private Jet Hire

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The auditor general’s 2025 report on the government’s financial statements revealed a significant financial oversight concerning the hire of a private jet. The report detailed that the government hired an eight-passenger private jet from Senegal for the president and his delegation to attend the 68th session of the Ecowas heads of states and government summit in Abuja, Nigeria, from December 13th to 15th, 2025. The jet hire cost a substantial D9,023,300. Auditors found that a withholding tax of D270,699.00 was not deducted from this payment, which represents a critical lapse in financial procedure. This amount was also not remitted to the Gambia Revenue Authority (GRA), raising concerns about compliance and revenue collection.

Audit Findings and Violations

Auditors stated unequivocally that the failure to deduct the withholding tax directly violates the Income and Value Added Tax Act 2012. The audit report noted that this non-deduction of withholding tax denied the government of much-needed public revenue, funds that could otherwise be allocated to various public services. It also noted that the omission sets a concerning precedent, which could impact future financial compliance and encourage similar lapses if not addressed. The auditors' findings specifically referenced the D270,699.00 in withholding tax that was not deducted from the D9,023,300 payment for the private jet hire. This substantial amount was also not remitted to the Gambia Revenue Authority (GRA), as previously identified in the auditor general's 2025 report, further compounding the financial irregularity. The report emphasized that such a failure to adhere to tax regulations undermines the integrity of the government's financial management.

Context of the Hire

The private jet used for the president and his delegation was sourced from Sam Airways, an aviation company based in Dakar, Senegal. This arrangement facilitated the president's attendance at the 68th session of the Ecowas heads of states and government summit, a key regional gathering. The summit took place in Abuja, Nigeria, between December 13 and 15, 2025, showing the importance of the travel. The auditor general's 2025 report identified that a withholding tax of D270,699.00 was not deducted from the D9,023,300 payment made for the private jet hire. This omission, as stated by auditors, violated the Income and Value Added Tax Act 2012 and prevented the remittance of these funds to the Gambia Revenue Authority (GRA). Auditors indicated that this failure to deduct the tax deprived the government of public revenue, a critical loss given the country's financial needs. The report notes the necessity of strict adherence to tax laws even in high-level government transactions.

Management's Response

In response to the audit findings, Management stated that the non-deduction of withholding tax was an oversight at the time the payment for the private jet hire was made. This acknowledgment suggests a recognition of the procedural error. Management indicated that future measures would be implemented to prevent similar occurrences, aiming to strengthen internal controls. "Going forward, management will work with the Accountant General’s Department to ensure the right selection of vendors and related tax rates in the system, such that the deduction is automatically generated," Management said. This proactive statement outlines a commitment to improving financial systems and ensuring compliance with tax legislation, thereby preventing such oversights in the future and safeguarding public funds.

Legislative Scrutiny

The auditor general’s 2025 report is currently under review by the Finance and Public Accounts Committee (FPAC) of the National Assembly. This parliamentary body is scrutinizing the findings and considering the implications of the government's failure to deduct withholding tax on the private jet hire. This parliamentary oversight process will examine the details outlined in the report, including the D270,699.00 in uncollected tax revenue from the D9,023,300 payment to Sam Airways for the president's travel. The committee's role involves evaluating the audit's conclusions regarding the violation of the Income and Value Added Tax Act 2012 and the impact on public revenue. FPAC's consideration is a key step in the legislative process, aiming to ensure accountability and recommend measures to prevent similar financial oversights in the future, thereby reinforcing fiscal discipline within government operations.