KMC Cashier Saihou Sabally: D140M Audit Reveals Missing Vouchers

• A forensic audit is underway for former Kanifing Municipal Council cashier Saihou Sabally regarding over D140 million in payments.
• An inquiry found D140.1 million in cheques cashed in Sabally's name lacked corresponding payment vouchers.
• Sabally denies misappropriation, stating he followed existing council procedures for cashing cheques and returning vouchers.
• The Gambian government has accepted recommendations for a surcharge and an economic crime investigation into the matter.
• The Auditor General has been directed to examine the unsupported cheques, with recovery proceedings contingent on establishing specific loss and responsibility.

An inquiry revealed that over D140 million in payments processed by a former Kanifing Municipal Council cashier lacked corresponding payment vouchers, prompting a government-backed economic crime investigation.

A forensic audit has been initiated concerning a former cashier for the Kanifing Municipal Council (KMC), Saihou Sabally, following an inquiry that identified a substantial financial discrepancy. The investigation revealed that over D140 million in cheques, which were cashed under Mr. Sabally's name, could not be matched with supporting payment vouchers. This finding has triggered a broader examination into financial practices within the council.

Bank records indicate that between May 2018 and January 2023, cheques totaling D167.6 million were processed in Mr. Sabally's name. While the Commission of Inquiry successfully traced corresponding vouchers for D27.55 million of this amount, a significant sum of D140.1 million remained without proper documentation at the time of the inquiry. This substantial gap in record-keeping forms the core of the ongoing KMC cashier Saihou Sabally D140m audit.

During his testimony, Saihou Sabally maintained that he did not misappropriate any funds. He explained that he cashed cheques based on authorizations from the council's chief executive and finance director, subsequently distributing payments to staff, allowance recipients, and suppliers as instructed by the accompanying vouchers. Mr. Sabally asserted that he returned all completed vouchers to the Finance Department and did not retain copies for himself.

He further clarified that he did not maintain a cashbook nor did he formally record the handover of vouchers to the Finance Department, stating that this was the established system he had always followed. The Commission, however, noted that these missing records severely hindered its ability to confirm the legitimate use of the funds or whether payments were appropriately authorized. It also highlighted instances where cash was disbursed before supporting vouchers were prepared or while these crucial documents were held elsewhere. Mr. Sabally recounted one specific '1-by-6' salary payment cycle where senior managers instructed him to return funds to the Receiving Cash Office due to the council's cash requirements, a directive he complied with, receiving official receipts for the returned amounts.

The Gambian government has formally accepted the Commission's recommendations, signaling a firm commitment to addressing the financial irregularities. This includes initiating a surcharge process and launching a full-scale Gambia economic crime investigation. A surcharge is a mechanism designed to recover funds when an audit establishes a financial loss and identifies the responsible party.

In response to the findings, the government has directed the Auditor General to meticulously examine all unsupported cheques involved in the KMC audit. The directive specifies that recovery proceedings will be pursued if the audit definitively establishes a specific financial loss and identifies the officer responsible for it. It is important to note, however, that the absence of missing payment vouchers Gambia does not, by itself, constitute proof that Mr. Sabally personally took the money, as the investigation aims to uncover the full scope of responsibility.

This case highlights the Gambian government's commitment to pursuing financial irregularities in public institutions, signaling increased risk for officials involved in cash handling and record-keeping. Lawyers should advise clients on robust internal controls and meticulous documentation to mitigate exposure to forensic audits and potential economic crime investigations, especially concerning payment vouchers and cash management.

Source: Original reporting via Foroyaa