Africa-Press – Gambia. State-owned telecommunications companies GAMTEL and GAMCEL recorded combined losses exceeding D870 million in 2022, lawmakers heard.
The revelation was made during a presentation of the firms’ annual activity report and financial statements before the National Assembly’s Standing Committee on Public Enterprises.
The report showed that while revenue improved in some areas, mounting debts, operational inefficiencies, and legacy financial obligations continued to weigh heavily on both institutions.
GAMCEL reported revenue of about D450.3 million, a 17 per cent increase driven mainly by growth in data and leased line services. Gross profit rose to D336 million. However, the company posted a net loss of roughly D749.5 million, largely due to a D486.6 million provision for bad and doubtful debts linked to long-standing receivables.
Auditors issued an unqualified opinion on GAMCEL’s accounts but noted material uncertainty regarding the company’s sustainability, citing accumulated losses and negative equity.
GAMTEL saw revenue decline from D277.3 million to D192.9 million, registering a loss of about D121.3 million. Officials attributed the downturn to capital constraints, infrastructure challenges, and stiff competition in the telecommunications market. The company also faces exposure to a D125 million government-guaranteed loan.
Auditors highlighted governance and compliance concerns, including limited execution of internal audit activities, delays in remitting statutory deductions to the Social Security and Housing Finance Corporation, and procurement compliance issues related to fuel supply contracts.
Management said some challenges stem from capacity constraints and historical operational weaknesses but assured lawmakers that reforms are underway. Planned measures include strengthening debt recovery, improving internal controls, and enhancing regulatory compliance.
The committee was also briefed on a World Bank-supported social plan valued at $6.4 million aimed at restructuring operations and reducing payroll pressures. The exercise affected 641 staff across the two entities and was described as necessary for restoring efficiency and competitiveness.
Looking ahead, officials said the Cabinet has approved plans for a public-private partnership to support network modernization and infrastructure expansion. The initiative is expected to improve service quality and revenue generation.
Lawmakers emphasized the importance of sustained reforms and stronger governance to safeguard national telecommunications infrastructure and steer the institutions toward recovery.
