Monday, March 27

“Various Executive Directives Amounting To Over GMD2.0 Billion In Principal Affect Us” – SSHFC Responds

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Officials From Social Security And Housing Finance Corporations

By Ramatoulie Jawo  

The Management of the Social Security and Housing Finance Corporation (SSHFC) has told the National Assembly Standing Committee on Public Enterprises (PEC) that they were affected by the impact of various Executive Directives that compelled them to make loans to various corporations to the tune of over GMD 2 billion, which they are having a challenging time in recovering.

SSHFC management made these remarks in response to the National Audit Office’s report before PEC. 

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The Management of SSHFC responded that as per the 2019 internal audit report, medical and health rent owings amounted to D4.1 million dalasis out of the D12.1 contained there. 

“The Auditors reported that the Corporation has not effectively protected the welfare of the members for the period under audit. However, we need to put this into context because we were affected by the impact of the various Executive Directives amounting to over GMD2.0 billion in principal, recovery of which is still a challenge, not including the lost interest which could have amounted to over GMD315 million,” SSHFC told PEC in response to the NAO report. 

The Management of SSHFC indicated in their response that this list of investments was imposed on the Corporation through Executive Directives and the directives included Galia (two ferries), Qatari (GFFI), GAMCO Police Barracks, GCAA (fire tenders and ambulances), GGC Loan Guarantee, GRTS Satellite, GIA Hajj, NAWEC Loans and Kanilai Housing Project.

“All the above investments are red herrings, including one NAWEC Loan (Build Own and Transfer). The amount of this loan is D74,517,000. The overall recoveries to date (December 2022) are D384,325,843.10, leaving an outstanding amount of D1,615,674,156.90.,” SSHFC told the PEC. 

The Auditor’s revealed that SSHFC’s Internal Audit Report on Investment has stated that the Department of Finance and Investment has not maintained proper documentation and review of the annual tenancy agreement for one of the investment properties (The NTC Complex) since January 2015, resulting in GMD12.1 million arrears owed to SSHFC by the tenants of these properties. 

The National Audit Office made the revelation at the presentation and consideration of the SSHFC Performance Audit Report on the Management of Social Security Funds before the National Assembly Standing Committee on Public Enterprises (PEC).

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