D650m megabank bailout wasn’t a loss, Governor tells lawmakers
The Governor of the Central Bank of The Gambia (CBG), Buah Saidy, has moved to clear lingering public doubts surrounding the sale of Megabank, telling lawmakers that the D650 million government injection into the bank was not a loss but a strategic move to stabilise the financial system and protect taxpayers.
Appearing before the Finance and Public Accounts Committee on Tuesday at the National Assembly during the continuation of consultations on the Auditor General’s report on government accounts from 2021 to 2024, the Governor said the Central Bank does not sell banks to make profit, dismissing claims that Megabank was disposed of at a loss.
“We are not in the business of making profit. Even the Central Bank Act does not mandate us to do so; our biggest profit is avoiding bank failure,” he stated.
He explained that the D650 million government funds injected into Megabank was used to clear toxic assets through the Management of Assets Recovery Company (AMRC), separating bad loans from the viable part of the bank.
According to him, D60 million has already been returned to government, with D20 million currently sitting in an account on behalf of the state, while recovery efforts on the remaining assets continue.
Saidy stressed that “the good bank, Megabank itself”, was sold separately to KM Holdings for $15.25 million, following a valuation by consultants.
He noted that selling the bank was necessary after it was found to be contributing heavily to rising non-performing loans and threatening the stability of the financial system.
Despite clarifying that profit was not the objective, the Governor revealed that the Central Bank has recorded strong financial results in recent years, posting profits of D2.45 billion in 2022, D1.4 billion in 2023, D2.5 billion in 2024 and D1.9 billion in 2025.
“These figures show that the Central Bank is financially sound,” he said, adding that the sale of Megabank helped avert a much costlier bank failure similar to past experiences that drained public funds.
The session also examined audit concerns over the non-disclosure of an outstanding balance of D24.4 million linked to the sale.
The Chairperson of the Finance and Public Accounts Committee, Alhagie S. Darboe, said the committee requested updates and clarifications from the Central Bank to address the audit query.
Governor Saidy explained that the amount in question relates to a 2.5 per cent commission paid to consultants – DT Associates – and not missing funds. He assured lawmakers that all vouchers, contracts, exchange rate details and payment records would be submitted in writing to support the clarification.
Members of the committee welcomed the explanation but insisted that full documentation, including the consultancy agreement and recovery details of toxic assets, be provided to properly shape their report and prevent public misinformation.
Officials from the National Audit Office confirmed that the Megabank issue did not feature in the 2024 audit report, describing the sale as a policy decision taken to manage a distressed bank rather than a case of financial loss.
Source: The Point
