Audit flags tax, exchange rate irregularities in Port Expansion Project

The National Assembly’s Public Enterprises Committee yesterday examined audit findings that flagged tax compliance and financial management irregularities in the Gambia Ports Authority’s Banjul Port Expansion Project for the financial year ended December 31st 2025.

Presenting the audit report before the committee, auditors said the project failed to withhold taxes for contract staff amounting to US$7,200 during 2025. The auditors recommended that management comply with the Income and Value Added Tax Act by ensuring withholding taxes are deducted and remitted to the Gambia Revenue Authority (GRA) in accordance with the law.

Responding to the findings, the GPA admitted the issue, saying there was uncertainty over which entity bears responsibility for paying the withholding taxes but said it would engage the GRA to clarify the matter and, if necessary, seek a tax waiver from the Ministry of Finance and Economic Affairs, noting that the project is financed through a grant to The Gambia.

The audit also identified discrepancies in the exchange rates used for direct payments, resulting in a net exchange difference of US$9,346.07. Auditors said the rates applied were not aligned with the applicable market rates and recommended that management make the necessary adjustments.

In its response, the GPA explained that the project relies on exchange rates generated automatically by the QuickBooks online accounting system. However, management said it had recognised the amount as an exchange loss in the revised financial statements. Auditors told the committee the issue remained unresolved after reviewing the revised statements and called for additional clarification on the foreign currency translation.

Another high-priority finding concerned US$123,600 in withholding taxes deducted from suppliers but not remitted to the GRA. The GPA explained that the payments were made directly by the African Development Bank (AfDB) to consultants and that discussions were ongoing with development partners to determine how such taxes should be handled.