20 November 2012

Gambia: AMRC Spent D22.2 Million in 2011

Saikou Kujabi, the managing director of the Assets Management and Recovery Corporation, has disclosed that the Corporation's total expenses for the year 31st December 2011 was D22, 236, 210. 00 compared to D17, 693, 381.00 in the previous year (2010).

AMRC was established by an Act of Parliament (AMRC Act 1992) to manage the assets and liabilities of the defunct Gambia Commercial and Development Bank and subsequently to take over the management and administration of any assets of the Gambia Government, which the Ministry of Finance and Economic Affairs may assign to it from time to time. These include the portfolio of assets from various Commissions of Enquiry established after the 22nd July Revolution.

Commercial loans

According to MD Kujabi, the Corporation since inception in 1992 has collected/recovered about 72% of the entire Gambia Commercial and Development Bank (GCDB) portfolio to the tune of more than D240 million from various Accounts (Commercial Loans, Development Funds and Managed Funds Accounts).

Whilst the balance outstanding on the said GCDB loan portfolio is about D94, 171, 508.00 as at the year ended 31st December 2011, he said collection efforts are ceasing as large parts of these debts are either unsecured and/or lack proper documentations since the debtors are either non-traceable or no longer in position to pay off their liabilities.

He revealed that the financial report for the year to 31st December 2011 indicates a total collection of D2, 161, 400 compared to D8, 877, 687.00 in the previous year (2010). He assured that the Corporation will continue making all necessary efforts to ensure recovery is maximised.

Development loans

"No movement has been recorded for the year under review and the previous year; these loans are agricultural developmental loans given to farmers in the form of tractors, agricultural tools and fishing gears through the Ministry of Fisheries. All these loans were unsecured and management is finding it difficult to recover due to the nature in which the loans were disbursed. Most of these debtors have either relocated and/or no longer in position to settle these debts. Recovery of these loans appears no longer feasible," Kujabi said.

Managed funds

The AMRC boss further revealed that these are government guaranteed loans to the Area Councils disbursed through the Ministry of Finance in the first Republic adding that a garnishee Order/Judgement was obtained in favour of the Corporation and the Directorate of National Treasury has promised to part of these councils 'entitlements to the Corporation from their subvention and the Corporation has collected D700, 000.00 for the year under review and none in the previous year (2010).

Forfeited properties (Special Account 1 rents)

Kujabi explained that some of the properties under the management of the Corporation are used on rental basis to generate income. He said the sum of D564, 900.00 has been generated for the year to 31st December 2011 compared to the sum of D784, 150.00 the previous (2010). He added that the year has seen a drop in the generation of rental income by the Corporation, some of these properties are vacant due to their bad state of repairs and all efforts are being made to rehabilitate and/or renovate and put them back in habitable order.

Forfeited properties (Special Account 2)

According to Kujabi, the revenue generated for the year to 31st December 2011 is D6, 381, 000.00, an improvement over the previous year (2010) of D2, 281, 000.00.

Special A/C 3 GCU

He went on to state that the revenue generated for the year to 31st December 2011 is more than D1, 463, 250. 00 compared to the sum of D801, 000.00 in the previous year (2010).

Other incomes

On other incomes, MD Kujabi stated that these are revenues generated through management's initiative and diversification programmes, which include revenue centres such as disposal of assets that are considered scrap at realisable values, interest on deposits accounts at various banks and staff loans, and guest house at Farafenni. He said that the revenue generated for the year to 31st December 2011 was D670, 899.00 compared to the sum of D701, 333.00 in the previous year (2010).

Turnover

He disclosed that the Corporation has generated the sum of D19, 471, 449.00 in turnover for the year to 31st December 2011, compared to the sum of D15, 923, 210.00 in the previous year (2010) adding that the total turnover represents receipts from commercial loan recoveries, other incomes and special accounts.

Result for the year

Kujabi told the Committee that the Corporation recorded deficit for the sum of more than D2, 764, 760.00 million for the year to 31st December 2011 compared to D1, 770, 170.00 in the previous (2010). The year 2011, he said, was indeed very challenging and difficult year for the Corporation, but notwithstanding these challenges, the Corporation results were reasonable even though it did not perform at the same level as other years.

Non-current assets

The AMRC boss stated that the Corporation's total assets for the year ended 31st December 2011 is valued at more than D5, 680, 581.00 book value compared to the sum of D7, 698, 781.00 the previous year (2010)."An investment into shares of 15, 274 with Banjul Breweries to the value of D336, 000.00 that was inherited from GCDB.

These shares are still maintained at original cost and have not yielded any interest and/or dividends over the years due to capitalisation purposes at the Banjul Breweries. The Corporation finally divested and sold the shares in the current financial year at a value of D100 per/share, which has generated the Corporation sum of more than D1, 527, 400.00," he explained.

Current assets

Kujabi averred that the current assets subdivided into three sub-heads are as follows: property investment, debtors (receivables) that have emerged as a result of trading in rice, cement and cash and bank balances. He said the total recorded for the year to 31st December 2011 is a net of D37, 732, 036.00 compared to D39, 152, 611.00 in the previous year.

He stated that the debtor's balances have significantly reduced over the year, but notwithstanding the Corporation has recorded an operating deficit and negative cash cycle due to its indebtedness to Bank PHB and AGIB respectively, whilst the Corporation is working tirelessly to reverse these negative balances into positive results.

Equity and reserves

Kujabi also informed the Committee that the equity and reserve portfolio of the Corporation stands at more than D43, 589.00 for the year to 31st December 2011 compared to the sum of D46, 006, 864.00 in the previous year (2010), adding that the reduction is as a result of losses/deficit recorded for the year 2011.

Staff complement

The AMRC MD also told the Committee that the Corporation has 56 staff on its payroll as at the time of submitting the report, with the managing director being the head of the institution, assisted by the deputy managing director and six managerial and middle managerial staff, while the rest of the staff complements are on supervisory, clerical positions and support staff respectively. "The comprehensive lists of the AMRC staff portfolio is herewith attached as Appendix 1 to this report," he added.

He further stated that the Corporation continues to train, equip and strengthen staff at all levels of the institution with modern techniques and skills, which would enable them perform most efficiently. He explained that AMRC's training and development is geared towards the acquisition of professional and vocational skills in areas such as Strategic Management, Finance, Marketing, Law, Information Technology and other areas where it is felt there is a training gap.

In view of the above, he said the Corporation is currently training nine members of staff in both local and overseas training respectively and this lists of staff under training are hereby attached as Appendix 2 to the report.

GPPA review

Lamin K. Barrow, a compliance officer from the Gambia Public Procurement Authority (GPPA), said that AMRC was found to be fairly compliant with the Public Procurement Act 2001 and Regulations 2003. The Committees then raised concerns, questions, recommendations and suggestions in the AMRC report before it was considered and adopted.

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