President Adama Barrow’s government has released a Gamcel boss, who accused of embezzling millions of dalasis while working at Gamcel. Mr. Seedy Jaiteh, is among the freed prisoners. Below is the Audit report in which he was indicted.
Final Report: Gamcel Fuel Review Exercise
Both the Gamtel and Gamcel 2009 and 2010 annual Programmes of work include fuel management efficiency reviews. Due to capacity constraints at the Gamcel Internal Audit, this exercise was not conducted in compliance with the 2009 annual audit programme. Based on the foregoing, the Gamcel fuel management efficiency review was listed amongst the priority ones for the 2010 audit programme.
OBJECTIVE
The objective of this exercise is to determine the degree of care and diligence applied in the management of the company’s fuel resources through the inbuilt control safeguards being applied.
SCOPE
This review covers the period 1st January 2009 to 20th August 2010.
OBSERVATIONS
Internal Audit observed the following ‘A – Z’ processes in the management of the fuel coupons:
An LPO is raised coupled with a completed payment (cheque is paid to Galp before releasing the coupons to Gamcel).
The coupons are thereafter collected by DHR’s driver from Galp.
The driver brings the coupons together with the signed pv to the Gamcel store for a GRN to be raised.
The stores staff after confirming the quantity and value, raise an SIN (stores issue note).
DHR (Seedy Jaiteh) signs the SIN and takes delivery of the coupons.
DHR (Mr. Jaiteh) issues to HR staff in convenient quantities at regular intervals. These are logged in a quire book by HR staff and signed by them. HR staff thereafter issue coupons to drivers for Gamcel vehicles. The HR staff also issue coupons for the Gamcel generators.
Tests Conducted and Findings: DHR (Seedy Jaiteh)
All LPOs’ issued to Galp from Gamcel were verified for the period under review and the amount arrived at amounts to D26,000,000 as per attached listing (annex 1). This amount was matched against the nominal ledger control listings (from Finance) and were found in agreement. Based on the results of this test, Internal Audit was assured that the fuel coupons purchased during this period is as stated above. All fuel coupons purchased are received by DHR (Seedy Jaiteh) and issued to the HR staff in lots at given intervals for distribution to Gamcel vehicles and generators.
Fuel coupons issued to the HR staff by DHR (Seedy Jaiteh) during the period under review amounts to D14,656,000 as per attached annex 2. At the cut-off date (20th August 2010), the inventory of fuel coupons found in hand with DHR (Seedy Jaiteh) amounts to D245,000.
Based on the information from the HR Department, the Finance and the Procurement (receiving point) sources, a shortfall of D11,099,000 remains not supported by any form of documentation or the existence of physical fuel coupons. This is of grave concern to the Internal Audit, and DHR (Mr. Seedy Jaiteh) should provide documented justification in support of this shortfall as soon as possible. A statement of receipts and Issues of fuel coupons is tabulated (attached as annex 3) which shows movements and how the short-fall gradually buids-up from D790,000 in January 2009 to D11,099,000 on the 20th August 2010.
This shortfall was discussed with DHR (Seedy Jaiteh) and he was requested by GM to account for the initial shortfall of D16,163,000. However, DHR (Seedy Jaiteh) was only able to account for D5,049,000 representing fuel coupons issued to his staff for the period March ’09 to September ’09 (not previously provided). This residual shortfall of D11,099,000 now tends to harden into a permanent shortfall.
Tests Conducted and Findings: HR Staff:
DHR (Mr. Seedy Jaiteh) being the main custodian of Gamcel fuel coupons, issues to his staff in convenient lots at a time. During the period, the quantity of fuel coupons issued by DHR (Mr. Seedy Jaiteh) to the HR staff amounts to D14,571,000 (annex. 2).
The HR staff maintain a register where fuel coupons issued to Gamcel vehicles/motor cycles and generators are listed and signed for by the drivers and security staff (for the generators). The total issued by the HR staff totals to D14,656,000 (annex 4 (over 200 pages – too bulky to attach). The difference between the amount for the quantity received and that issued amounts to D141,000 (excess of issues over receipts). This difference is attributed to the inventory in hand at 31st December 2008 not brought forward.
Recommended:
That DHR (Mr. Seedy Jaiteh) to provide evidence (documentation) to explain the short-fall of D11,099,000 within seven working days ended Thursday 14th October 2010. Failure to provide the required documentation on the due date could render this short-fall as a fraudulent one.
DHR (Mr. Seedy Jaiteh) to surrender all fuel coupons in his possession to the stores section of the procurement office with immediate effect.
That HR clerks to be filling SINs which should be approved by DHR to enable them to withdraw from the store a quantity sufficient for a week’s operational needs.
That the HR staff to maintain the existing register to record:
Quantity, denominations and values of fuel coupons received,
Quantity, denominations and values of fuel coupons issued, details of recepients with their signatures, and vehicle numbers.
On the basis of the average quantity issued weekly, a re-order and a minimum inventory level should be established to mitigate against stock-outs.
Based on the foregoing, it is recommended that DHR (Mr. Seedy Jaiteh) be temporarily relieved of his duties pending the finalization of this impending short-fall of D11,099,000.
Thanks
…………………………………..
Director Internal Audit
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