Auditors of the National Audit Office (NAO) have faulted the Gambia Government’s cash payment of two million two hundred and seventeen thousand nine hundred and eighty-seven (D2,217,987.00) on ‘Covid-Organics (CVO)’ brought from Guinea Bissau.
This medium could recollect that Guinea Bissau had received a consignment of the Malagasy Covid-Organics (herbal tea) that was claimed to have ‘preventive and curative’ abilities for Covid-19. A Bissau Guinean delegation brought the so-called medication to Bissau after receiving the consignment in Antananarivo on May 1, 2020, despite the World Health Organisation’s (WHO’s) warning over the unproven remedy.
Madagascar’s President Mr. Andry Nirina Rajoelina was quoted to have said that the donation was for countries across the region; and The Gambian health officials subsequently received a supply of the supposed Covid-19 cure.
But as NAO report on Gambia government’s COVID-19 Response indicates, the payment on the Covid-Organics from Guinea Bissau, ‘should have been made through bank transfer, and it also seems excessive for the service provider.
“Audit evidence obtained indicated that the cash payment amounting to GMD 2,217,987 was made to Liza Transport International in respect of the procurement and transportation of COVID-Organics from Guinea Bissau to the Gambia”, the report revealed. NAO further said its auditors could not confirm whether the payment was made, and/ or received by the supplier as claimed since relevant supporting documents were not attached to substantiate the payment.
“Subsequently, we noted that the bank transfer details for Liza Transport International were stated on the invoice, but no payment instruction was attached. As a result, the cash payment cast significant doubt on the payment made to Liza Transport International”, the audit office lamented. They also noted that the payment amounting to D2,217,987.87 made to Liza Transport International was made without any competition and the single source procurement method was not approved by Gambia Public Procurement Authority (GPPA). The audit office stated that is in violation of section 44 of the GPPA Act, which states, ‘All single source procurements based on an emergency shall be approved by the GPPA.’
There is a risk that internal controls over the procurement of medical items are overridden to asset unplanned procurements at detriment of government, and it resulted in procuring items that are useless to the response against COVID-19, the auditors averred. They cautioned that’s indicative of weak internal control over the processing of payments, which if not addressed, could result in financial misappropriation. “There is a risk that the amount is misappropriated as cash payments are susceptible to theft”.
The audit body further decried that in the absence of an accurate and authenticated receipt, it would be difficult to ascertain whether the amount was actually paid or received by the supplier as claimed, and there’s also a risk that the transportation price was inflated due to single sourcing without GPPA approval.
“In order to ensure the prudent use of resources, management should ensure that the resources are only spent on approved and useful drugs. The management should ensure that the due process and procedures are followed in the procurement of medical items to avoid wastage of public resources”, recommended NAO.
Meanwhile, the concerned Management in its response, among others, informed the NAO that prior to effecting the payment, Treasury Department was consulted for advice and the travel budget line was advised as it’s transport related expenditure. It cited a Note verbale (diplomat communication) as an evidence of some form of consultation that took place between the Foreign Ministry of Madagascar and The Gambia.
The management further held that some form of consultation also took place between Foreign Ministry of Madagascar and The Gambia through note verbale N020\237.AE\M, in which the Gambia Government was informed of the Madagascar President’s offer\donation of COVID Organic (CVO), which was reported to have been applied on COVID positive patients in that country and found to be effective.
