Tuesday, October 10, 2017

Senegal's new Foreign Minister makes first visit

President Barrow with Senegal's Foreign Minister 
Barrow, Kaba, Darboe and staffs  











Senegal's new Foreign Minister finally made his much anticipated first trip to Banjul today. According to the press release from State House, Mr. Sidiki Kaba was acting as Special Envoy of the Senegalese President to President Barrow to convey the message of bilateral cooperation and "reiterating President's Sall's commitment to the spirit of friendliness and good neighborliness between The Gambia and Senegal."

The other purpose of Mr. Kaba's visit, according to the release, was to introduce himself in his new functions as Senegal's Foreign Minister.  Prior to assuming his new post, Mr. Kaba, a human rights activist, was his country's Justice Minister.

In addition to paying homage to President Macky Sall in recognition and appreciation of Senegal's leadership in The Gambia's transition from 22 years of dictatorship to his country's, President Barrow reassured the foreign Minister that the two leaders will continue to consult each other on regional and other issues of mutual interest.

Regional integration appears to have been on President Barrow's mind, especially after the recently concluded Gambia-Senegal Economic Forum in Dakar that placed great emphasis on finding ways to overcome the obstacles at the border crossings, impeding the free movement of goods and peoples between the two sister countries.

Accompanying his Senegalese counterpart to State House was Gambia's Foreign Minister, Mr. Ousainou Darboe, accompanied by his senior staff.   Also present were the Senegalese Ambassador to The Gambia, H.E. Salieu Ndiaye, who accompanied his Foreign Minister.  

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Saturday, October 7, 2017

SeneGambia Federation: Has Jammeh made the case?

The just concluded Gambia - Senegal Economic Forum where impediments to the economic integration of the two countries were discussed, there's a renewed interest in some form of a closer association - both economic and political - between the two countries.  This dialogue - in one form or another - is as old as the two sister countries.  As we are fond of saying, Senegal and The Gambia are condemned by both history and geography to make the relationship work to the advancement of both parties.

On July 15th 2014, we wrote a blog post entitled : SeneGambia Federation: Has Jammeh made the case.

Enjoy !!

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Could it be that Yaya Jammeh is succeeding where the United Nations had failed in the early 1960's, and Kukoi Samba Sagnia's failed 1981 coup d'etat making it possible (if not inevitable), the political union between The Gambia and Senegal.

The Gambia's viability as a sovereign state has always been suspect  because of its small size and poor resource endowment.  As a result, the United Nations, prompted by the United Kingdom, studied and eventually concluded that The Gambia's economic and security viability at Independence can only be assured by federating with Senegal.

The political leadership of the People's Progressive Party rejected the idea and so did many Gambian politicians.  There were a few exception, including I.M Garba-Jahumpa who entertained the idea of some form of a political association between the two states, a position influenced by and consistent with his Nkrumaist/Panafrican greed.

At Independence in 1965 to 1970 when The Gambia graduated from its grant-in-aid state status from Britain,  the political leadership's main preoccupation had been to prove to the rest of the world that the smallest independent country in Africa could be, and is viable as a state when the national budget was being financed by internally-generated resources from taxes and excise.  Loans and grants from the World Bank and similar financial institutions became the primary sources of loans on concessionary terms that kept those who still questioned the country's viability at bay, at least until Kukoi struck in the 1981 coup which saw the destruction of both lives and economic infrastructure.  Business confidence was shattered.

Many of us have argued that The Gambia never fully recovered from the 81 coup d'etat, even though significant gains were made from the period of the Economic Recovery Program (ERP) period in 1985/86 to the period commonly referred to as the program for Sustained Development (PSD) period in 1992 until the Jammeh-led coup d'etat in 1994.  It must be noted that former was a World Bank/IMF-lead effort and the latter was a home-grown effort led by Gambians.

The Confederation between Senegal and The Gambia came about as a result of the 1981 coup d'etat, therefore borne out of security necessity and not economic, political, social and cultural necessities.  It is interesting that in spite of the damage done by the 1981 coup, the ERP was able to restore the economy to a level strong enough to compete toe-to-toe with our bigger neighbor.  In fact, the Gambian economy was better managed and far more efficient that Senegal's.  We became the "supermarket of the sub-region" because of better set of policies brought about by the liberalization of the economy.  The Banjul port became more efficient than the bigger Port Autonome de Dakar.

All of the comparative advantages built were lost during the 20 year dictatorship under Jammeh.  The institutions that were built and straightened under the Jawara regime have either been destroyed completely or sufficiently weakened to render The Gambia a sitting duck, unable to fend off any predatory or external threat, on the security side.  The security threat by rogue elements is a real threat now (as opposed to the Jawara era) because of the belligerent and high-risk foreign policy of a regime that toys with Hezbollah and other terror groups in the sub-region.  It warrants the concern of Gambian politicians.

On the economic front, Gambia's viability is threatened by its inability to compete with Senegal because of an economy that continues to be mismanaged by a group of incompetent supporters of the dictatorship.  The country has been emptied of its youthful population who have decided to vote with their feet to Europe in search of fortune and freedom, two commodities that are lacking in Jammeh's Gambia where the economy is contracting, thus cannot provide the much needed jobs for a growing and youthful population, and the State is becoming increasingly militarized.

Even tourists are fleeing the country because of the heavy presence of the military is tourist resorts and access to public beaches has been restricted to exclude ordinary Gambians, especially the young.  Not to be outdone, highly trained young Gambians have abandoned Gambia for their new homes in London, Paris, Geneva, New York and across the globe.  They will never come back to work for pittance in a highly insecure and hostile environment.  They may come to visit grandma and grandpa and few relatives still in the Gambia.  This is the reality and we can thank Yaya Jammeh.

The next government to succeed Jammeh will inherit an extremely weak, and essentially dysfunctional and bankrupt State.  Regardless of the type of a succession hand Gambians will be dealt, the policy toolbox must include the option of a more formal and comprehensive association with Senegal which must be put before the people in the form of a referendum.  Whether Gambians realize it or not, Jammeh is making a strong case for this scenario to be a very viable option.  We know the issue is a very emotional one, and thus prone to irrational thinking but Gambians must consider an association with Senegal as part of the debate.

A frank and open debate of the issue is necessary.  But to do so successfully, we must check our parochialism (some would say patriotism) at the door and look at the raw and hard facts.  Will the association be beneficial (economic, political, social, cultural) to Senegal, and thus entertained, and even encouraged?  It can no longer be business as usual.
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Gambia - Senegal Economic Forum ends in Dakar

                                                Mr. Muhammad Jagana, President GCCI

The first Gambia - Senegal Economic Forum concluded today in the Senegalese capital of Dakar that was attended by a strong Gambian delegation led by Her Excellency Fatoumatta Jallow Tambajang, Vice President of the Republic of The Gambia.

The Forum brought together private sector operators from both countries to discuss prospects for closer economic ties that will lead to the integration of the two economies.  However, for this fete to be achieved, both The Gambia's Chamber of Commerce and Industry (GCCI) President, Muhammad Jagana and Senegal's Serigne Mboup, President of National Union of Commerce, Industry and Agriculture identified common obstacles namely excessive border controls that impede free movements of goods and people.

The lack of good road infrastructure which may partially explain the high cost of road, air and see transport between Banjul and Dakar.  It was pointed out that it cost as much to travel between the capital by air as it is between Dakar and Paris.  "To ship a container from the Port of Dakar to the Port of Banjul costs a lot more that to ship one destined for Europe" according to Serigne Mboup.  There is thus the need to review existing policies in both Senegal and The Gambia to remove some of these impediments that add to the cost of doing business which, in turn, slows down the process of integrating the two economies.

Harmonization of the telecommunication protocols, particularly as it relates to the mobile industry, must be a priority of the governments of the two countries and as a result the Gambian President of the Gambia Chamber of Commerce and Industry president appealed to the two Heads of State to help make it a reality.

The Senegalese President of the National Union of Commerce, Industry and Agriculture urged his government and Senegalese business operators to try and replicate the single structure model that acts as an umbrella for all the business community that interface with the government.

Although the governments of the two countries are committed to strengthening of the bilateral relations to form a strong strategic partnership, the success of this new push will depend on how quickly the constraints that impede the process of achieving the economic integration of the two countries are removed.  The two governments were urged by both delegations to work to achieving this goal.

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Friday, October 6, 2017

Illegal use of Social Security funds by Yaya Jammeh

On the 4th of March, 2014, we wrote this about the misuse of the Pensions, Provident and Housing Funds of the Social Security and Housing Finance Corporation by committing illegally funds that belong to the Gambian workers and their employers who have been contributing to these Funds for their retirement.  The day of reckoning is finally here: 
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Yaya Jammeh and Edward Graham continue to abrogate the laws of the Gambia by using Social Security funds to invest in highly risky businesses and activities that tantamount to gambling with the heard-earned savings of Gambian workers.

Never mind that these criminals claim that the contract is between Youssou Ndoure and SSHFC Staff Association, the entire contract sum is coming from the coffers of the Corporation to which they will held accountable, together with Yaya Jammeh.

To pay Youssou Ndour $80,000 for a "string of concerts" billed as entertainment that will "make every Gambian happy because they all miss the icon."  The public relations officer of the SSHFC went to the extent of thanking both God and Yaya Jammeh for making the signing with the Senegalese singer possible.  The collective display of insanity at the SSHFC is one more sign that the regime of Yaya Jammeh is engaged in a form of extortion associated more with organized crime than a so-called head of state.

The act of paying a singer $80,000 at a time when the Gambia is experiencing its worst economic downturn in nearly four decades is both obscene and criminal.   If Youssou Ndoure and his ilk are blinded by money to see the horrible human right abuses that Gambians suffer at the hands of one of the worst dictator on the continent, Gambians like Edward Graham, Alahji Mohammed Sallah, Gibril and Lamin Sima all of SSHFC should have opposed the deal, even at the risk of losing their jobs.

Investing pensioner's funds recklessly is criminal enough because it is prohibited by the very law that established the SSHFC.  What is equally repulsive, and a sign of complete break-down of Gambia's public finance infrastructure and the entire budgetary process to go with it, is the perversion of a once clearly-delineated role of central government.

SSHFC officials claim that proceeds of the concerts is to be " used to support the development initiatives of Yaya Jammeh in key sectors such as security, education, agriculture and health."

Since when is public finance now the responsibility of SSHFC Staff Association?  What is the function of central government?  What are our taxes for?  If the central role of government of providing and finance the public goods for the public good, including but not limited to security, agriculture, health and education is now the function of a parastatal, then, where is Gambia headed?

SSHFC must realize that Yaya Jammeh is using the corporation's assets for his private use and benefit which is a criminal act and all those lending support to such acts will be held responsible.   As the adage goes:  ignorance of the law is no excuse.  To the staff of the corporation, in the event that you have never bothered to read the Act creating the SSHFC, we'd suggest that you get a copy and read it.  All of you, from Yaya Jammeh and Edward Graham to Alhaji Mohammed Salleh and Lamin Sima, are breaking the law and you will be held responsible.

Has Jammeh bankrupted Social Security?

On the 8th April 2015, we asked the question whether Jammeh was bankrupting the Social Security and Housing Finance Corporation.  The Commission of Inquiry is providing tangible answers to our questions.  

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Edward Graham, MD - SSHFC
Disturbing news coming out of Banjul is that the finances of the Social Security and Housing Finance Corporation (SSHFC) are in such a precarious state that the Corporation has been unable, lately, to raise funds to pay contractors to complete works on the estates they sold plots to.

We have been critical of SSHFC in the past because of the risky investments it has been engaged in at the urging of the Gambian dictator who has financial interests in them, including the public transport sector, putting the Pension Fund at risk at the detriment of the thousands of private sector pensioners.  We have warned that such exposure that the Managing Director is subjecting the corporation that threatens both the organization and the economy as a whole.

The finances of SSHFC are reported to have been dwindled to D 100 million from D 600 million.  It is also being reported that the Office of he President - read Yaya Jammeh - is withdrawing about D 5 million per month.  The assault on the finances of this public corporation by Jammeh and his cronies appears to have intensified now that the Gambia Ports Authority, GAMTEL and NAWEC are financially insolvent, thanks to a level of corruption never seen before.

You will recall that the two ferries - 'Kansala' and 'Aljamdu' - where purchased from a Greek company named Gallia Holdings Ltd that was in a joint venture deal with Yaya Jammeh.  Curiously, the company is registered in the Marshall Islands, an offshore business destination.  The deal went sour when the two ferries arrived amidst a huge fanfare only to be deemed being of the wrong design.  Consequently, they have since been moored at the Banjul port awaiting possible legal litigation. 

Sources close to the regime are accusing Jammeh of working with foreign banks to siphon off Social Security funds/bonds days before they mature which has accrued losses to the corporation that runs into the millions of dollars.  The timing of the withdrawals by Jammeh is determined by information provided to him by insiders strategically planted in commercial banks with details of SSHFC investments portfolio.  Staff of the State House are then instructed to withdraw funds from the corporation's accounts abroad.

When we say that what we have in Banjul is a criminal syndicate headed by Jammeh who uses civil servants to act criminally, we are not engaging in a smear campaign or hyperbole but calling it as it is.   Every effort must, therefore, be made to get rid of the cancer in Gambia's body politic that is metastasizing.

Another bad investment by Social Security

On the 28th February, 2014, we wrote this about Social Security and Housing Finance Corporation's panache to bad and dubious use (or misuse) of pensioners' money.  Here is what we said as the Commission of Inquiry is delving into the corporation's investment activities.   
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Edward Graham, Managing Director

Edward Graham, Managing Director of Gambia's Social Security and Housing Finance Corporation (SSHFC) is back to doing what he did that landed him in prison fairly recently, that is investing social security funds in a very callous and indiscriminate manner at the direction of Yaya Jammeh.

It was on the 15th February 2012 that the infamous Cameroon-born Special Criminal Court Judge Emmanuel Nkea - Jammeh's hanging judge who has himself absconded last month - sentenced him to a one-year mandatory prison term with hard labor for causing a D 73,000, equivalent to less than $2,000 (two thousand ) loss to the Home Finance Company, a subsidiary of SSHFC.  He served less than his mandatory sentence before he was strung from prison, by presidential pardon and returned to his position as head of the Agency legally entrusted with the Provident and Pension Funds.

We have been highly critical of the investment strategy of the SSHFC with a portfolio that includes investments in the tourism and transport sectors at a time when both sectors have been under performing. The corporation has also been involved in dubious partnerships with Yaya Jammeh and his business partners in the Gulf that seem to be directed by Zainab Jammeh.  Bad investments in the past have resulted in a weakened the financial integrity of SSHFC to the point that the corporation had to delay paying salaries.

The latest of these highly dubious joint venture partnerships is the United Arab Emirates' BPI Group based in Dubai and headed by one Dimitris Sophocleous.  This new venture is coming at the heels of another failed joint venture between Government/GPA and the Greek company Gallia Holdings which has left two inappropriately-built and ill-fitted ferries costing Gambian tax payers over $ 8 million sitting in the Banjul harbor when the present ferries plying Banjul - Barra are in dangerous disrepair.

It now appears that the same players who brought us the Aljandu and Kansala ferries are the very same people forcing Edward Graham to enter into yet another venture that is bound to fail.

Yaya Jammeh, Zainab Jammeh and their cronies in the Gulf with the Gambian middleman currently stuck in Banjul are responsible for this ill-advised housing venture named the BPI Social Security Housing.

This new partnership puts the social security contributions and, indeed, the pension funds of ordinary Gambian workers in jeopardy by exposing it to a housing market that is under-developed, and actually contracting because of recent government policy of bulldozing houses built by Gambian retirees and foreign investors that the regime consider to have been improperly permitted.

Mr. Graham is obviously following the directives of Yaya Jammeh who will most certainly blame the Managing Director should the venture fail, as it most certainly will, paving the way for him to be returned to Milee II, this time for a very, very long time.  We continue to see this movie over and over again; yet they do not seem to learn.

Thursday, October 5, 2017

The plundering of Social Security Funds and suggested mitigating measures needed in response

Hon. Samba Jallow, MP Niamina Dankunku
The extent of the damage done to the social security scheme at the Social Security and Housing Finance Corporation may not be known for sometime to come.

And perhaps not until the Commission of Inquiry into the illicit wealth of Yaya Jammeh has completed its work and a thorough assessment of the financial damage inflicted on the corporation by the former Gambian dictator who is currently in involuntary exile in Equatorial Guinea.

Based on what the Commission has revealed thus far, it is safe to say that the Barrow government needs to take immediate defensive measures to protect what's felt of a once financially viable corporation that was established to secure the financial well being of private sector employees during their retirement years.

The social safety net that took years to build as insurance for older workers during retirement has been destroyed by a handful of Gambians, led by Jammeh and his business partners who used the financial contributions of private sector workers into the Pension Fund, Provident Fund and the Industrial Injuries Compensation Fund.

The extent of the damage done to the Housing Finance Fund, the third Fund of the SSHFC is still unclear as the Commission continues its probe.  Pay special attention to the Kanilai Housing Scheme.

Commenting on my Facebook page, Hon. Samba Jallow, the NRP Member of the National Assembly for Niamina Dankunku finally connected the dots, as did many Gambians, when he said, "Sidi Sanneh, this is why when pensioners apply for their pensions and are asked to stay three months before payments is matured."

He expressed the serious nature of the pensioners' predicament and solicited my views on what can be done to mitigate "a very serious" challenge for our country and a serious threat to the welfare of current and future Gambian pensioners.

There are a few defensive measures that could be taken even before the conclusion of the Commission's work to protect what's left of the financial integrity of the Social Security and Housing Finance Corporation :-

1.  Appoint an apolitical Management Team with proven managerial experience to replace the current team.  A new Board should also be appointed immediately.

2.  Restore the Ministry of Finance and Economic Affairs as the line Ministry to replace the Office of The President.

3.  Divest SSHFC of all of its 33% shareholdings in Trust Bank and any other commercial bank with the proceeds going towards replenishing the appropriate Funds of the corporation.  The same should apply to other SOEs with similar shareholdings in commercial banks.  Government should be out of the commercial banking business after divesting from the GCDB and closing its Agricultural Development Bank.

4.  Immediate action taken - legal or otherwise - to recover all outstanding loans due to SSHFC

5.   Bar Management from operating outside the Social Security and Housing Finance Act

6.  An oversight Committee needs to be established to ensure that SSHFC Management and Board are strictly adhering to the above until such time, and preferably at the end of the Commission of Inquiry's mandate and the submission of its Final Report and recommendations before remedial measures are taken to prevent this from ever happening again.

At the end of it all, the moral character of the person is as important as his competence and professionalism matters in such positions of responsibility.

Andrew Sylva comes to mind, who as Managing Director of SSHFC worked under Yaya Jammeh but refused to honor presidential directives that would have meant the inappropriate and illegal use of the finances of the corporation.  Mr. Sylva told his fiduciary responsibilities seriously and was dismissed as a result.  Jammeh initially refused him his pension dues only to reverse himself later.

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