Actions by Corrupt government officials in The Gambia has put the government into a critical financial situation, owing to tax and revenue losses amounting to over 2 Billion Gambian Dalasis, which occurred as a result of poor assessment of tax payment by The Gambia Revenue Authority(GRA).
Recently the government issued a commission of inquiry into the evasion and corruption practices by GRA, the nation's institution tasked with the collection and management of tax and revenue to the government. After an intensive auditing assessment process, the commission led by Justice Mama Fatima Singateh (a renounced legal practitioner in The Gambia), on wednesday 16th June, 2012 presented the final report of the commission to the head of state, at the State House in Banjul. The report revealed numerous abnormalities within the GRA administration in terms of improper record keeping , poor tax administration, gross incompetence and negligence, which led to a huge amount of loss of necessary revenue to The Gambia Government.
According to the report the reassessment conducted by the commission of inquiry on tax evasion shows the total liability of fifty(50) selected tax payers including twelve hotels, ten legal practitioners, seven medical doctors, six insurance companies, consultants and Engineers, four GSM operatoprs and four other companies amounted to D2,525,56,591.57 Billion.
The report also revealed that the methodology adopted by GRA was flawed. The Gambia is a tax based economy prompting the commission equired into the tax obligation of Legal Practitioners, Accountants, Medical Practitioners, Construction Companies, GSM Operators, Hotels, Private Sector Companies and other businesses, which are mandated by law to pay tax.
Reacting to these facts in present of cabinet ministers and commission members, The Gambian leader Yaya Jammeh said the government will remedy the situation. He expressed dismay and dissatisfaction over companies and individual lack of tax payment to the government, while reiterating that his government will put a definitive end to corruption by any possible means.
He however, apologized the Gambian people for the country's revenue deficit, due to improper collection of tax by the Authority concerned."The government will recover all the lost Bututs. We will remedy this situation because those who owed the state will be made to pay their tax obligation, because a criminal investigation will be setup.There would have been no deficit if these assessments were done properly.The government lost such amount of money because the revenue went to the wrong pockets" he said. He also went on to say that his government will fight corruption to the letter, "I don't care about a cousin or an uncle". President Jammeh said the idea of setting up a commission of enquiry is not new, noting that he has always been suspicious on the amount of government losses on revenue collection. He said those found guilty of tax evasion will face the full force of the law, as no body can justify such an economic sabotage.
Meanwhile four officials of the revenue authority and ten others are currently standing trial on corruption charges.The Gambia is one of the smallest and poorest country in Africa, with a high unemployment rate.The action taken by government to investigate into the public fund is therefore welcomed by almost every Gambian.