The Petroleum Commission is currently under intense scrutiny following revelations that it spent over D7.6 million in 2023 on various expenditures, including travel and educational sponsorships, all under an unapproved regulatory framework. This significant spending occurred despite auditors having raised similar concerns during the 2022 audit, indicating a persistent and unaddressed practice within the Commission. The auditors specifically noted that the Commission was effectively spending funds intended for the Training and Resources (T&R) Fund, a critical resource designated for specific development purposes. They maintained that the Commission intended to reimburse its operational account from the T&R Fund once the necessary regulations governing its use received official approval. This approach has raised questions about financial governance and adherence to established protocols.
The D7.6 million sum was reportedly disbursed from the Training and Resources (T&R) Fund, yet crucially, without an approved regulation governing its expenditure. This lack of a formal framework for disbursing such a substantial amount of public funds has been a central point of contention in the audit findings. The auditors' insistence on the need for proper regulatory oversight shows the seriousness of the issue, noting a potential bypass of accountability mechanisms.
Details of Unapproved Expenditures
A detailed breakdown of the unapproved expenditures by the Petroleum Commission in 2023 reveals a range of disbursements. These included a payment of D275,312.00 for the minister's air ticket to London, an expense that has drawn particular attention. Educational sponsorships formed a significant portion of the spending. Tuition fees for Musa Bah amounted to D1,173,362.50, supplemented by an additional stipend for Musa Bah totaling D393,465.00. Awa Sarr's tuition fees were recorded at D991,974.93, and she also received a stipend of D406,838. Another substantial payment covered the second-year tuition fee for Fatou L Njie, which was D983,727.03. Tuition fees for Awa Bah were notably high at D1,861,470, while Awa Jeng's tuition fees reached D114,693.60.
Beyond these individual expenses, the Commission's spending included D37,365 in per diem payments, indicating travel-related costs for various personnel. Pre-financing for the Ministry of Energy accounted for D93,842.78, suggesting direct financial support to the parent ministry. Staff training for the Ministry’s personnel cost D89,676, reflecting an investment in human capital development within the broader energy sector. An additional sum of D89,676 was allocated for per diem pre-financing for the Ministry, further detailing the financial support extended. The audit also noted a payment of D91,138 for withholding tax from the PC GTB account, an expense that falls within the larger questioned expenditures.
Context and Commission's Defense
The Petroleum Commission, in its response to the audit findings, rejected the assertion that the D7.67 million in question was paid from the Training and Resources (T&R) Fund. Instead, the Commission stated that these payments were made from its operational funds. The Commission clarified that these disbursements were made after the Ministry of Petroleum and Energy requested financial support for scholarship recipients. These scholarship awards had reportedly been approved before a government moratorium was placed on using the T&R Fund without a finalized regulatory framework. Despite this moratorium, the Commission continued to spend money, with the stated intention of recovering these funds later from the Ministry of Petroleum and Energy, a practice that auditors viewed as effectively drawing from the T&R Fund.
The Commission also sponsored staff to pursue further studies, according to reports, but did so without established criteria for selecting beneficiaries for these educational opportunities. This lack of a transparent selection process has been identified as a significant governance weakness. Regarding other expenditures, the Commission referenced a service rule that allows Category One staff to purchase official vehicles after three or five years of service, though this specific rule does not directly address the unapproved spending from the T&R Fund. The Commission agreed to pre-finance tuition fees and student stipends, citing a desire to prevent Gambian scholarship beneficiaries from abandoning their studies due to delays in finalising the necessary regulations for fund disbursement. This explanation, while aiming to justify the actions, still points to a procedural bypass.
Audit Concerns and Future Steps
The audit report unequivocally stated that the sum of D7.6 million was spent under the Training and Resources (T&R) Fund without an approved regulation governing its expenditure. This fundamental flaw in financial management has been a recurring point of concern. Auditors specifically noted that this practice persisted despite a similar concern being raised during the 2022 audit, showing a systemic issue that has yet to be adequately addressed. The auditors maintained that the Commission was technically spending money meant for the T&R Fund by intending to reimburse its operational account from that fund once regulations are approved, thereby circumventing the established purpose of the T&R Fund.
In response to the mounting pressure and audit findings, the Petroleum Commission has since ceased pre-financing such requests. The Commission has also urged the Ministry of Petroleum and Energy to expedite the promulgation of the necessary regulations governing the T&R Fund, acknowledging the critical need for a formal framework. Additionally, a significant concern noted by the auditors is that the Commission continues to operate without an approved training policy in place. This lack of a formal policy extends to the selection criteria for beneficiaries of educational opportunities and the general framework for staff development initiatives. The absence of these approved frameworks, including a full training policy, has been a recurring point of contention in successive audit reports, indicating a persistent gap in the Commission's internal governance and operational procedures. The call for expedited regulatory approval and the establishment of a clear training policy notes the urgent need for the Commission to align its spending practices with strong financial and governance standards.
