By Tabora Bojang
The auditor general’s report on the consolidated financial statements of the government for the year ended 31 December has disclosed that government granted a duty waiver amounting to D28,982,351.00 to Jah Oil Company, despite the company not meeting the eligibility criteria outlined in the duty waiver application guidelines.
According to the NAO, Jah Oil Company’s primary operation is cement re-bagging, which does not qualify to be exempted from duty waiver as per the eligibility criteria enshrined in the duty waiver application guidelines document by the Ministry of Finance and Economic Affairs.
Auditors noted that the approval for duty waiver dated 6 January 2023 cited market stabilisation and price control as grounds for granting the waiver, but no supporting document or economic analysis was provided to substantiate these claims.
“The approval disregarded the established eligibility criteria, giving Jah Oil an undue advantage over competitors,” the auditors noted.
According to the auditors, Gambia Revenue Authority (GRA) conducted an assessment into the matter which estimated the tax exemption at D28,982,351.00 “while Jah Oil paid only D5,000 for the waiver receipt which is grossly disproportionate to the benefit received
In response to this query, the government explained that at the time of this application, Jah Oil had already applied for a Special Investment Certificate (SIC) at the Gambia Investment and Export Promotion Agency (GIEPA), and that pending the SIC application, the company submitted a duty waiver application for bulk cement in order to avert supply chain disruption.
“The application was granted approval based on this situation and on the 26th July 2024, the SIC application was approved for a period of two years,” the government’s response stated.
However, the auditors maintained that the Special Investment Certificate given to Jah was approved in July 2024, more than 18 months after the duty waiver was granted and it “cannot therefore retroactively justify the prior approval.” The auditors therefore averred that in light of the above, the finding remains unresolved and Jah oil should be engaged to recover the amount involved.
