By: Binta Jaiteh
Auditors from the National Audit Office have instructed the Edward Francis Small Teaching Hospital (EFSTH) to pay D10,749,698.94 in unpaid income tax to the Gambia Revenue Authority (GRA).
According to the auditors, a review of the hospital’s payroll revealed that income tax deductions amounting to over D10 million were not remitted to GRA as required by the Income and Value Added Tax Act, 2012.
This was disclosed in the audited management letter covering the period from 1st January 2021 to 30th April 2024, which was presented to the National Assembly’s Finance and Public Accounts Committee (FPAC).
The auditors noted that failure to pay income tax violated the law and might result in penalty charges and possible litigation.
“We recommend that the board ensure management engages GRA on a possible payment plan agreement immediately and begins settling this liability, including future monthly income tax deductions, and provide the audit team with evidence of compliance,” the auditors advised.
In response, EFSTH management agreed with the findings and recommendation.
“The engagement has started, as a team of senior members met with the Commissioner General in July 2024 to discuss these arrears. Management will engage GRA for negotiation and a suitable payment plan,” EFSTH stated.
During consideration of the report, auditors also uncovered the fraudulent payment of call allowances to unqualified staff.
NAO revealed that a memo dated 20 February 2018, approved by the board of directors, specified the grades eligible for call allowances.
“Review of the payroll has shown that management has been paying monthly call allowances to staff who are not in the approved categories,” the auditors said.
They described the payments as a misappropriation of hospital resources and recommended their immediate cessation and recovery.
In response, EFSTH management said the call allowance paid to Mr. Ndong, a nurse anesthetist and administrator, was appropriate and approved by the Personnel Management Office for all nurses, including his colleagues in other hospitals.
However, management agreed with the other findings and confirmed the payments to ineligible staff had been stopped.
“Allowances have been stopped immediately, and we will begin recovery,” they told the committee. The committee has since suspended consideration of the report until further notice.