GAMCEL, a Gambian telecommunications company, reportedly owes the Social Security and Housing Finance Corporation (SSHFC) over D22 million in unpaid contributions, according to a full report by the Public Enterprise Committee (PEC) of the National Assembly. The Committee's findings emerged from its detailed scrutiny of the 2022 audited financial statements, management letters, and activity reports of State-Owned Enterprises (SOEs). This in-depth review, conducted as part of the PEC's oversight responsibilities, aimed to assess the financial health and compliance of various public entities. A thorough review of GAMCEL’s payroll records, as specifically detailed in the PEC report, revealed that several statutory SSHFC contributions were either significantly delayed or entirely unpaid by the company during the period under examination. These lapses represent a serious breach of financial regulations and have significant implications for the social security of its employees.
Details of Unpaid Contributions
The PEC report noted several critical areas of non-compliance regarding GAMCEL's contributions to the SSHFC. GAMCEL notably failed to remit Pension Scheme contributions for a substantial portion of 2022, specifically for nine consecutive months: April, May, June, July, August, September, October, November, and December. This extended period of non-payment directly impacts the pension benefits of its workforce. The company also did not pay National Provident Fund (NPF) contributions for the period spanning May through December 2022, further exacerbating the issue of unremitted employee benefits.
Additionally, GAMCEL's Injury Compensation Fund (ICF) contributions were not paid for nearly the entire year, omitting payments for January, February, April, May, June, July, August, September, October, November, and December 2022. This widespread failure to contribute to the ICF leaves employees vulnerable in the event of workplace injuries. The report further indicates that GAMCEL incurred a penalty of D21,455.84 due to the late payment of its March contribution, showing the financial consequences of these delays. An additional penalty of D1,074.03 was also imposed for the same late March contribution, demonstrating a pattern of financial mismanagement that led to avoidable costs for the company. The cumulative effect of these unpaid contributions and penalties contributes significantly to the over D22 million owed to the SSHFC.
Other Financial Irregularities Found
Beyond the critical issue of unpaid contributions, auditors identified other significant financial irregularities within GAMCEL that raise concerns about its operational oversight and risk management. The PEC report specifically stated that assets totaling more than D78 million were found to be uninsured. This substantial lack of insurance coverage for such significant company assets was noted during the audit process as a major risk factor, potentially exposing the telecommunications company to considerable financial losses in the event of damage, theft, or other unforeseen circumstances. The failure to insure high-value assets represents a serious lapse in corporate governance and asset protection.
Auditors discovered a considerable discrepancy of D30,593,889.50 during the reconciliation of GAMCEL's financial records. This significant difference was found between the General Ledger balance and the detailed breakdown of individual roaming receivable balances, indicating a substantial variance in the company's accounting for these receivables. The report did not specify the exact cause of this discrepancy or its potential implications for the company's financial statements, but such a large unreconciled amount points to potential issues in financial recording and internal controls. This finding shows the need for more rigorous accounting practices within GAMCEL.
PEC Recommendations for GAMCEL
In light of these findings, the Public Enterprise Committee (PEC) issued several key recommendations to address the identified deficiencies and ensure future compliance. The Committee recommended that GAMCEL’s Board and Management ensure all statutory payments due to the Social Security and Housing Finance Corporation (SSHFC) are remitted by the 15th of each month to prevent further penalties and ensure timely compliance. This critical measure aims to regularize the telecommunications company's contributions and address the consistent delays and non-payments identified in the report, thereby safeguarding employee benefits.
Additionally, the Committee urged GAMCEL to ensure all high-value assets are adequately insured promptly. This recommendation seeks to protect the institution from potential financial losses that could arise from uninsured assets, a significant concern noted by the audit findings regarding the D78 million in uninsured assets. The PEC emphasized that prompt action is necessary to safeguard the institution against potential financial losses.
The PEC further advised GAMCEL’s Board and Management to reconcile the roaming receivable balances without delay. This includes making the necessary accounting adjustments to resolve the D30,593,889.50 discrepancy found between the General Ledger and the detailed breakdown of individual roaming receivable balances. This step is key for maintaining accurate financial records and ensuring the integrity of the company's financial reporting.
