Friday, January 13, 2012

National budget portrays mixed performance of public institutions

The 2012 national budget of The Gambia government has revealed the performance of the government institutions in the country.  Whilst some performed impressively well, delivering good financial results, others performed rather oddly accumulating millions of dalasi in losses and deficit.

According to The Gambia’s 2012 budget, read by the finance minister in December 2011 to the nation from the National Assembly, all but Gambia Radio and Television Services, Asset Management Recovery Corporation, and Gambia Civil Aviation Authority performed well in 2011.

For the year ended December 2010, the audited account of the Gambia Radio and Television Services (GRTS) shows that it recorded a total income of D54.32 million, with total expenditure of D65.92 million resulting in a net loss of D11.57 million.

According to the budget, the Digital Satellite Project, which cost about 9.5 million US Dollar and launched in May 2009, continues to be the main preoccupation of GRTS while work continues on the project sites.

The budget stated that the state broadcaster has finally joined modern broadcasters on the web, which facilitates access to live GRTS broadcasts by both the listening and viewing audiences abroad.

The Asset Management and Recovery Corporation also recorded a deficit of D1.77 million for the year 2010 compared to a surplus of D3.07 million in the previous year.

The Corporation, according to the budget, registered a turnover of D9.73 million as at 31st December 2010 compared to D179.78 million in the previous year. Total expenses as at end-December 2010 recorded D17.6 million compared to D182.62 million in the previous year.

The Gambia Civil Aviation Authority made a loss of D35.8 million in the financial year 2010 compared to a gain of D0.586 million in 2009.  Given the rationale for such a huge loss, the budget states that the loss is due to high exchange rate of the loan for the construction of the new terminal building and the depreciation charged from the asset transferred from the Banjul International Airport Project.

On the other hand, the overall turnover as per the audited accounts for the period 31 December 2010 amounted to D158 million compared to D144 million in 2009.  This is an increase of D34.6million on turnover which represents 10 per cent over the 2009 figures,” it stated.

The Authority will improve its infrastructure and acquire new assets in order to maintain its position in the aviation industry. With improved financial position of the authority, efforts will be made to ensure that International Civil Aviation Organisation (ICAO) standards are maintained and other recommended standards be implemented. This will enable the authority to continue working towards making Banjul International Airport a hub for all major carriers in West Africa.

The operating profit of the nation’s gateway, Gambia Ports Authority, has declined by 58% in 2010 as the budget states that the authority’s profit has decreased from D111 million in 2009 to D47 million in 2010.  Not only the operating profit has declined, the net profit after tax has also decreased from D36.6 million in 2009 to D26.4 million in 2010 representing a 28 per cent decline.

Turnover decreased from D500 million in 2009 to D427 million in 2010 representing a decline of 14.6 per cent.

However, with this financial performance, the budget stated that the Gambia Ports Authority’s financial performance for the year ending 2010 continues to surge in a positive direction.

The Gambia Ports Authority continues to register landmark improvements both in its core function as a maritime transport agent and in the socio-economic development of The Gambia, according to the budget.

The 2011 Expenditure of the Gambia Telecommunication Company Limited (Gamtel) was forecast to be D1.2 billion whilst the 2010 expenditure was D1.1billion.  The budget says the increase in the expenditure forecast was to cater for rising trend in global fuel and telecommunications-related prices.

In line with its objective to provide universal access, Gamtel successfully upgraded from 2.5G to 3G Internet connection in early 2011. This project is currently piloted in the Greater Banjul Area and is to provide wider capacity and improved quality service, the 2012 budget states, adding that plans are underway for Gamtel to expand the network to all major provincial towns, in the very near future.  

According to the budget, the turnover for the National Water and Electricity Company Limited for 2011 was projected to increase to D1.573 billion from D1.406 billion in 2010.  However, the operating costs were also projected to increase from D1.386 billion in 2010 to D1.474 billion by the end of the year 2011.

Over the past years, NAWEC has seen tremendous increase in the number of Electricity and Water Projects initiated by the Government to improve the lives of Gambians, the budget states. Consequently operations and maintenance activities of the company have also increased significantly to meet consumers demand for water and electricity.

In July 2011, NAWEC installed and commissioned a 9 MW engine at the Brikama Power Station to augment the generation capacity. This increase in the generation capacity has also enabled NAWEC to shut down some engines for routine maintenance and major overhauls.

The Gunjur Water Supply Project is a US$4.7 million project funded by the IDB for the provision of safe and adequate drinking water for the people of Gunjur. Contract for construction has already been awarded, the budget states.

Social Security and Housing Finance Corporation has recorded a consolidated net surplus of D59.3million, which has compared unfavorably with D90.3 million recorded in 2009.  Total Net Assets grew by 13 per cent from D3.9 billion in 2009 to D4.4 billion in December 2010. Members' Fund grew by 13 per cent to D3.6 billion during the year under review.

The year 2010 was marked by a sense of cautious optimism about prospects of global economic recovery. The timely diagnosis of the global financial crisis at an early stage enabled management to respond quickly, which led to a strategic direction to ensure effective management of resources.

The unaudited financial statements of the Gambia Public Procurement Authority (GPPC) as at end-December 2010 showed a total revenue of D24.49 million and a total expenditure of D19 million with a retained profit of D2.90 million.

During the 2010 fiscal year, GPPC registered some improvement in its overall performance. In other to cope with the demand of Central Government as well as diversify into more private sector printing, the Corporation strived to improve on both its human resources capacity by training its staff in various areas of need as well as upgrading and improving its equipment for enhanced operation and quality service delivery. 


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