LG COMMISSION CRITICISES KMC’S FINANCIAL MANAGEMENT
The Local Government Commission of Inquiry in its probe of the Kanifing Municipal Council’s expenditure practices has determined that the expenditure and financial management of the council was characterised by “persistent illegality, poor oversight, and deliberate disregard of public financial management laws”.
The report presented to President Adama Barrow on 11th May, which has not been released to the public but which The Standard is privy to, stated that “substantial sums were expended outside approved budgets and without lawful council authorisation.
These include payments for “mayoral projects,” “community outreach,” “cleaning initiatives,” and “protocol engagements” which were executed on verbal instructions from the mayor and processed by the CEO and Director of Finance without council resolution or Finance and Audit Committee approval.
“This [sic] contravened the Local Government Act 2002; and the Public Finance Act 2014, and the Commission therefore finds that all off-budget and unauthorised payments were illegal and constitute financial misconduct and unauthorised expenditure”. It reported.
It found that “imprests and advances amounting to over D4 million were issued to staff and contractors but remained unretired, with no supporting documentation or receipts.
The commission also found that the council made repeated large cash withdrawals from its operational bank accounts, totalling over D4.6 million, purportedly for “operational expenses” and “staff facilitation” without supporting vouchers, payee acknowledgment, or expenditure justification.
These practices, it said, amounted to cash mismanagement, embezzlement risk, and violation of financial discipline, attributable to the director of finance, paying-out cashier, and former accounts cashier.
The commission also found out that about D2.8 million was paid as unauthorised allowances, sitting fees, and bonuses to councillors and staff, without approval by the Council or the Local Government Service Commission and those responsible officers and beneficiaries are liable to refund and surcharge.
The report noted that the mayor’s office maintained and financed “mayoral projects” and “outreach programmes” directly from Council funds, bypassing the Finance Department and that payments totalling about D3.5 million were made without documentation, using handwritten authorisations.
“The commission finds that these practices represent abuse of discretion and political interference, and that the mayor (Talib Ahmed Bensouda) bears direct responsibility for this misconduct,” the report stated.
The report stated that the Internal Audit Unit led by Ebrima SK Fofana, failed to conduct pre-audit or post- audit verification of payments, did not review vouchers, and neglected to issue actionable audit reports in contravention of the Public Finance Act 2014
The commission asserted that the Finance Committee, Ministry of Lands and Regional Government, and National Audit Office all failed to exercise effective oversight as no inspection or compliance review was conducted during the relevant period, despite multiple audit warnings.
“This breached Sections 48(1) and 151 of the Local Government Act 2002; and Section of the Public Finance Act 2014. The Commission finds this institutional failure of oversight materially contributed to the continuation of fiscal indiscipline within KMC,” it stated.
It averred that cumulative effect of these violations constitutes gross financial misconduct and abuse of public office.
