Covid Billions: Finance Minister Says D1 Billion Landed in Government Account

Finance Minister Hon Mambury Njie © Askanwi

This article was initially published in April 2020.

By Yusef Taylor, @FlexDan_YT

The Gambia’s Finance Minister, Hon. Mambury Njie, informed members of the National Assembly’s Special Committee that the government received one billion dalasis in its accounts on 20th April 2020. The Minister explained that the “very soft loan from the IMF has now landed in our account. It’s a facility that they [IMF] normally provide. It’s about one billion dalasis.”

Hon. Mambury Njie asked parliamentarians for additional time to submit a breakdown of the 143 million dalasis expenditure which he announced last week. Instead of a detailed breakdown, he requested a Supplementary Appropriation to provide support for vulnerable Gambians.

Recounting the funds mobilised for the Ministry of Health, Finance Minister Njie said that “out of the 512 [million], the last time I gave a preliminary report on the impact of Covid and I said they requested 12 [million]. At that time we gave them 4 [million] and later we gave them 8 [million]. In addition to that 12, we also provided the 500 [million].”

Gainako readers will recall that the Ministry of Health revealed that they needed US$2.5 million [125 million dalasis] to implement an emergency short-term three-month programme to confront the disease. In just over a month, the Finance Minister has announced that 143 million dalasis has already been spent to combat Covid-19.

Hon Sidia Jatta and Hon Touma Njie © Askanwi

500 Million Raised Through Virement, 143 Million Spent

During the deliberations, the Finance Minister explained that the 500 million dalasis was raised after cutting from 24 budget entries. According to him, “up until today, we have not hit the ceiling that Parliament appropriated for expenditure. This is why we have to make sure that we do the virement.”

In the first round of questions, Hon. Sidia Jatta questioned the Finance Minister on “where and how much this sum was vired from the main budget?” In response, Minister Njie said that “from that 500 [million], 143 million has been released to the Ministry based on their request. One hundred million is purposely to supplement the North Bank to procure ambulances and medical equipment. In the process of the procurement, they realised there is a deficit of 100 million dalasis.”

“On top of the grants that they have given us, the 100 million—that’s equivalent to two million dollars—was released for them to be able to complete the purchase of the items based on the list that the Ministry of Health gave them. The other 43 million are all local expenses: hotel accommodation and feeding of quarantined people. It’s all itemised.”

Majority Leader, Hon. Kebba K. Barrow, questioned the Minister about purported condom expenditure, which has gone viral on social media. In response, the Minister rebuffed those claims as false and not included in the expenses. This prompted other National Assembly Members (NAMs) to request a detailed breakdown to put the issue to rest.

Hon. Sidia Jatta also requested the Finance Minister to document the virements made and share them with Parliament. In response, Minister Njie said that “we will provide the virement by tomorrow, latest early morning, showing from which budget line items to the other. The Accountant General has promised to make that available. The only funds that have been released from our end are 143 million dalasis.”

1 Billion Dalasis Landed Yesterday

“The facility from the IMF has now landed in our account. It’s a facility that they normally provide to the dollar-denominated Central Bank account, and the Central Bank converts it into dalasis. As of yesterday morning, it has now landed in our account. It’s about one billion dalasis,” Finance Minister Hon. Mambury Njie said.

Supplementary Tied to Compensation for Citizens

One parliamentarian questioned how quickly the Finance Minister could provide support. According to the NAM, “if the Minister has one billion dalasis available in your account, are you planning a package in terms of helping people who are already affected by this, and how soon are you going to come out to intervene?”

In response, the Finance Minister said, “the issue is there is pre-Coronavirus poverty and there is also post-Coronavirus poverty. Some people have moved from not being vulnerable to being vulnerable at this time. These are the data that are being gathered and they are almost there. That will help us make informed decisions. Yes, they will be helped.”

“Yes, there are plans to assist the people, and I am sure you will hear from the chief executive very soon, and we are working hard on it,” the Finance Minister added.

Some NAMs objected to the Finance Minister’s request for a Supplementary Appropriation Bill. However, the Minister was adamant that there is a need for an SAP. He explained that “I think it’s something that we need to respond to, which maybe is an emergency. A revised budget might take some time, and we want to avoid cutting operations of any ministry or department. That’s why we cut on travel and other items like training that we know will reduce because of the coronavirus.”

In his closing remarks, the Finance Minister reiterated that “what I am here today to ask for is a Supplementary Appropriation in order to be able to respond to the needs of the vulnerable.”

IMF Rapid Credit Facility: Loan or Grant?

One NAM asked a simple question: “Is the one billion credit facility a loan or a grant?” In response, the Finance Minister explained that “we are cutting our clothes according to our size. It’s zero interest and you pay it in five years. So, it is not a grant. It is a loan facility—very soft.”

According to Minister Njie, “the revised budget can come later, maybe around June, when we can revisit it. Because right now, up to the end of March, the revenue performance, interestingly, is very good. They’ve collected almost 1.2 billion dalasis. This is why, when I said I am coming for the Supplementary Appropriation, we cannot do otherwise.”

Minister Njie in Blue and Permanent Secretary alongside © Askanwi

However, after the meeting, some NAMs described an alternative to a Supplementary Appropriation. Since only 143 million has been spent from the 500 million, 357 million is yet to be spent on the fight against Covid-19. Parliamentarians opined that the Minister can use the 357 million currently available. Additionally, money that could be used has been raised by the private sector.

Regardless, parliamentarians were of the view that the one billion dalasis sent by the IMF must also be subjected to National Assembly scrutiny, as it is a loan, and all loans must be ratified by the National Assembly according to Provision 155(3) of the 1997 Constitution, which states that:

“No loan shall be raised by the Government on behalf of itself or any other person or authority otherwise than by or under the authority of an Act of the National Assembly.”
— 1997 Constitution, Provision 155(3)

Ends