Rédaction Africa Links 24 with babucarr balajo
Published on 2024-03-25 09:37:40
The US$50m loan agreement between The Gambia government and Arab Bank for Economic Development in Africa (BADEA) has raised concerns over its legality and transparency. In a letter to the editor, Nuha Ceesay from Leeds, United Kingdom, has dissected the loan arrangement, shedding light on possible violations of the 1997 Gambian Constitution and The Gambia Public Finance Act 2014.
According to Ceesay, the loan proposal was brought before the National Assembly in June 2023, with the intention of borrowing US$50m from BADEA to lend to Gambian businesses involved in importing food and essential commodities. However, Ceesay argues that the government’s handling of the loan raises questions about its compliance with legal requirements.
Ceesay refers to Section 155, Sub-section 3 of the 1997 Constitution, which stipulates that no loan shall be raised by the government without the authorization of the National Assembly. Ceesay points out that the loan agreement between The Gambia government and BADEA should have been approved by the National Assembly and recorded in the Meridian System. Failure to do so, according to Ceesay, would constitute a breach of the constitution.
Furthermore, Ceesay highlights the provisions of the Public Finance Act 2014, specifically Section 43 and 46, which require the National Assembly to ratify international loan agreements and state guarantees. Ceesay raises concerns about the D48m fee imposed on the US$50m loan, suggesting that it was set by the government, not BADEA, to favor a specific borrower, Jah Oil.
Ceesay also points out inconsistencies in the lending criteria set by BADEA for loans between US$20m and US$75m, noting that the D48m fee does not align with their standard requirements. Ceesay questions the legality of the fee and urges the finance and trade ministers to clarify the basis for imposing such conditions on the loan.
In conclusion, Ceesay calls for independent journalism and critical analysis of government actions, urging journalists not to be swayed by official narratives. By conducting thorough research and questioning authority, journalists can avoid being used as tools for government propaganda.
The letter from Ceesay raises important questions about the transparency and legality of the US$50m loan agreement between The Gambia government and BADEA. As the debate continues, it is essential for all parties involved to adhere to legal requirements and ensure accountability in the handling of public funds.
Read the original article on The Standard
