Africa-Press – Gambia. Auditors from the National Audit Office (NAO) tasked Banjul City Council to sue jalakolong construction company over the breaching of D2,507,880.68 contract.
This was disclosed in the audited management letter of Banjul City Council EU -Ostend project, covering the period 1 January 2020 to 31st April 2024 which is presented to National Assembly committee on Finance and Public Accounts.
The auditors queried that the contract was mismanaged with unfulfilled obligations in the renovation of crab island buildings.
Review of contract documents and interview with project personnels revealed that contract agreement for the renovation and rehabilitation of crab island buildings through the EU Oostende-Banjul City Link Project was signed between BCC and Jalakolong Construction Company, a non GPPA registered supplier on 31st December 2021 at the tune of GMD5, 703,976.70. A total of GMD2, 507,880.68 has already been disbursed to the contractor but the contract requirements were never fulfilled
The Auditors told the committee that the contractor cited bankruptcy reasons for his inability to complete the project in a letter dated 27 June 2022 and requesting for a financial bailout from BCC, which was not realized. BCC noted, that a warning letter was sent to Jalakolong dated 17 May 2022 to express their dissatisfaction with the progress of the contract.
Registrar of Companies at Attorney General’s Chambers & Ministry of Justice and the Business Analysis Report revealed that, Jalakolong Trading Enterprise was registered as a sole proprietorship on the 11 of May 2021 and since then have not submitted any annual returns or registration renewal
This would suggest that Jalakolong was likely registered to siphon funds away from the project in a fraudulent manner. The contract was terminated on the 18th of August 2022 by the council and re-awarded to ECOFARMS with the same contract terms and the renovation is still incomplete. Auditors indicated that contracting with a non-GPPA registered supplier contravenes the procurement regulations, potentially leading to non-transparency, lack of competitiveness, and the risk of engaging unqualified contractors.
The disbursement of funds without corresponding fulfilment of contract requirements exposes the project to financial losses and raises concerns about the financial oversight and management practices of the BCC,” NAO added. The failure to fulfil contract requirements results in project delays, undermining the objectives of the renovation and rehabilitation initiative and potentially affecting the overall timeline and success of the EU Oostende-Banjul City Link Project,” auditors argued. Auditors recommended BCC to ensure that all future contracts are awarded to GPPA-registered suppliers to comply with procurement regulations and promote transparency and competitiveness, procedures to ensure that funds are disbursed based on the satisfactory completion of work as per contract terms. This includes regular progress reviews and milestone-based payments.
The CEO must make sure that there is an aggressive method of follow up in recovering these funds from Jalakolong. Auditors urged the management that hence forth, the council will ensure that any contract awarded will be in compliant with the GPPA regulation and registered with GPPA.
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