Breaking Down the Audit Report: How IEC Potentially Misappropriated over 368m Dalasi
By Kaddy Jawo
The recently published National Audit report, covering the period from January 1, 2020, to December 31, 2023, found that the Independent Electoral Commission (IEC) may have misappropriated public funds totalling three hundred sixty-eight million, thirty-five thousand, eight hundred ninety-three dalasis and sixty-one bututs (368,035,893.61).
The financial irregularities detected in the audit include a failure to remit collected revenue to the consolidated revenue fund, missing receipts that were not accounted for, overpayments on contracts, payments made to the personal accounts of staff, suspected diversion of public funds for personal use, suspected fraudulent payments of allowances, and unretired funds. These issues raise serious concerns about accountability and financial integrity.
This article aims to thoroughly analyze the audit report, detailing potential financial losses and implications on the public funds.
Break down of potential misappropriated funds
| Finding | Amount | Context |
| Failure to remit revenue collected to the consolidated revenue fund | 8,374,159.00 | Auditors found that from 2020 to 2023, the IEC did not remit revenues from party registrations, nomination deposits, and voter ID replacements to the consolidated revenue fund. |
| Failure to recognise 40% of the sale of the bidding documents as income. | 60,000.00 | Auditors claimed that the IEC sold bidding documents worth GMD150,000 for voter registration equipment procurement. Out of this amount, 40% (GMD60,000) was retained but not recognised as income in the IEC books. |
| Missing receipts | 4,575,000.00 | Reconciliations of revenue in the financial statements against receipt books for 2020-2023 showed missing receipts totalling GMD 4,575,000. |
| Undisclosed ECOWAS Mission Grant | 534,000.00 | Auditors found a grant of GMD534,000 from The ECOWAS Mission in the 2020-2023 ledgers, but details on its utilisation were not provided before the audit’s completion. |
| Failure to use donor support fuel on election activities. | 302,400.00 | Auditors said the IEC received GMD 2,130,984 in fuel coupons from the African Union for the 2021 presidential elections. However, coupons worth D302,400 were unused in Kerewan and Mansakonko due to a lack of petrol stations, leading to their diversion. |
| Failure to provide contract docs of verification for contracted staff. | 70,000.00 | A review of retirement documents for the 2021 presidential elections showed that 14 temporary verification staff were hired to vet candidate nominations. They were paid D70,000.00, but no appointment letters were provided for verification. |
| Payment made to Returning Officers private bank accounts. | 301,323,850 | While reviewing bank statements and payment vouchers, we noted that D301, 323,850.00 was paid to Returning Officers’ private accounts for election expenses in their regions. |
| Single sourcing to President International Awards (PIA) for the production of election materials. | 760,000.00 | Auditors observed a payment of GMD760,000.00 to Presidential International Award (PIA) for election materials, which used single source procurement instead of the mandated three quotes per GPPA Regulations. |
| Payments made to unidentified temporary staff. | 4,517,400.00 | During the review of retirement documents for 2021-2023 electoral expenses, the audit team could not identify some temporally hired election staff due to missing designations on cash payment vouchers. This hindered the verification of payments totalling D4,517,400.00 made in Banjul, Kanifing, Basse, and Brikama regions. |
| Payments not directly made to contracted vehicle owners. | 198,000.00 | During the review of cash vouchers for the 2021-2023 electoral cycle, we discovered that the entire budget of D198,000.00 for vehicle hiring for the Mansakonko presidential elections was paid to Samba Jallow instead of individual vehicle owners. |
| Payments made to individuals not on the posting list. | 1,109,500 | A posting list details temporary staff assigned to election duties. Reconciliations between cash payment vouchers and the posting list showed GMD1,109,500.00 was paid to individuals not on the list, raising doubts about the authenticity of these payments. |
| Suspected diversion of public funds for personal use. | 1,856,314.00 | Discussions with IEC management revealed that returning officers receive funds in their private bank accounts to cover election expenses, which they must return if unused. An audit of bank statements from 2021 to 2023 showed that some officers did not withdraw the full amount transferred, leaving D1,856,314 in their accounts after elections. This raised suspicions that the remaining funds were kept for personal use. |
| Suspected fraudulent payment of allowances. | 15,891,502.53 | During the audit period, the Commission paid allowances totalling GMD 15,891,502.53, which included three months of gross salary incentives, nomination allowances, and motivational tokens. However, the electoral service code 2018 indicated that these allowances were not authorised, rendering them potentially fraudulent. A memo from the CEO to the chairman emphasised the practice of providing incentives post-elections for staff motivation. Notably, during the 2021 Presidential election, the CEO suggested a gross salary payment due to a postponed staff party, resulting in three months of gross salary being paid as an incentive. This practice continued for subsequent election periods. |
| Unretired funds relating to election expenses. | 7,935,603.55 | Discussions with IEC management indicate that budgeted election funds are transferred to the private accounts of Returning Officers for election activities. These officers must provide evidence of expenditures after each election. However, reconciliations from 2021-2023 reveal unretired funds of GMD7,935,603.55, indicating a lack of concrete evidence for the spending of these funds. |
| Failure to process allowance payments through the payroll system. | 12,719,077.53 | A payroll system is a method for paying employees, handling employment taxes, and keeping transaction records, either manually or through automated software to reduce time and errors. A review of payment vouchers from 2020 to 2023 showed that the IEC paid GMD12,719,077.53 in incentives (allowances) outside the normal payroll system. Instead of processing through the system, cheques were issued in individuals’ names, raising concerns about potential fraud. |
| Payment of huge amount of funds via cheques. | 7,809,087.00 | During the audit, we discovered that large sums totalling GMO 7,809,087.00 were withdrawn via cheques made out to some employees of the commission. The accounts staff received these cheques and distributed the funds as incentive allowances. Additionally, supplementary budget payments for parliamentary elections were also made through cheques, involving significant amounts. The commission lacks a reasonable cap on cheque usage, increasing the risk of fraud. |
| TOTAL | 368,035,893.61 |
Contract overpayment in USD
The auditors also reported that the 2021 bank statements of IEC indicated an overpayment of $85,789.99 to ESI for voter registration equipment. The contract specified an agreed amount of $2,995,000.00, but the actual amount paid to ESI, according to the bank statement, was $3,080,789.99.
There is a risk that the controls surrounding payments made to contractors are inadequate. If this issue is not addressed, it could lead to fraud and wastage of public resources. Additionally, there is a concern that some relevant officers may have intentionally facilitated this to receive kickbacks from contractors.This is a risk that this was done deliberately by the relevant officers to receive kickbacks from the contractor.
Police open investigation
In a press release dated October 15, 2024, the Gambia Police Force announced it has launched an investigation into the audit queries raised against the officials of the Independent Electoral Commission (IEC).
“The public will be kept informed of any significant developments, and we assure you that the investigation will be conducted with professionalism and integrity. We appreciate your patience and cooperation during this process.”
The Chairman of the IEC, Alieu Momar Njai, reportedly wrote to the Office of the President requesting that the police discontinue their operations. He cited concerns about “interference,” which he believes could compromise the integrity of free and fair elections in the country.
However, according to Section 60 of the 1997 Constitution of The Gambia, the Auditor General’s office is required to conduct an annual audit and report on the public accounts of The Gambia. This includes auditing the accounts of all government offices and authorities, the courts, the National Assembly, and all government enterprises.