We have obtained information that the Financial Reporting Oversight Board (FROB) will inaugurate the Gambia Accounting, Auditing, and Corporate Governance Standards Committee (henceforth referred to as the Standards Committee) on Wednesday, 29 January 2024. Considering the legal and procedural requirements for establishing this august body, we are hugely concerned about this development. We have noted that this Committee is being established in total contravention of the Financial Reporting Act 2013, which is a concern for professionalism, transparency, and accountability in the financial reporting system in the country.
The Standards Committee is established under Section 66 of the Financial Reporting Act 2013. The same Act establishes The Gambia Institute of Chartered Accountants (GICA) under Part 2 and the Financial Reporting Oversight Board (FROB) under Part 8 as public bodies. The Act provides for registering chartered accountants and practicing and registered auditors and setting accounting, auditing, and corporate governance standards.
The nine (9) members of the Standards Committee come from both GICA and FROB. The Act states under Section 66(2)(a) that GICA will elect five (5) representatives by the Rules of the Institute, and Section 66(2)(b) states that FROB will appoint four (4) representatives.
We have received information that GICA did not conduct an election but passed a resolution to select its five representatives, as the law requires. In the case of FROB representatives, we have obtained information that two of the appointed members are Mr. Modou Ceesay, the current Auditor General, and Mr. Attikan Dibba, the current Finance Director of the Central Bank of The Gambia, who are both currently serving as Board members of FROB itself.
Given the mandate of the Standards Committee, the appointment of these two officials raises serious questions about the independence of the Committee. The Financial Reporting Act 2013 states in Section 66(4) that “The standards committee shall be independent in its decision-making and the standards issued by it shall not be subject to approval by any other entity, including the Board (i.e. FROB).” Thus, the appointment of Ceesay and Dibba as board members of FROB creates a potential conflict of interest and undermines the independence of the Standards Committee.
We are further concerned with the proposed Standards Committee’s grossly limited inclusivity. Out of nine members, we noticed only one female member. This falls short of the standards of gender inclusivity expected of such a national institution, which should have aimed for at least 30% gender representation in line with best practices and stated government policy.
In light of the foregoing, the Edward Francis Small Centre is gravely concerned about the circumstances surrounding the establishment of the Standards Committee. For that matter, we hereby demand the following:
- The Financial Reporting Oversight Board, the Gambia Institute of Chartered Accountants, and all other stakeholders must uphold and abide by the Financial Reporting Act 2013 in the composition of the Standards Committee.
- FFROB and GICA proactively disclose the procedures and criteria for their members’ election/selection and appointment for public consumption. We urge them to share reports of the process publicly.
- All stakeholders prioritize gender representation in the composition of the body.
We recognize and appreciate the unique and essential function of the Standards Committee in ensuring transparency and accountability in corporate governance and financial management in the country. Financial reporting is a professional tool and process that enables both the government and other entities to acquire accurate financial information, which is necessary for decision-making, prudent internal financial management, judicious resource use, and effective service delivery in fulfilling fundamental human rights.
Above all, accurate financial reporting is a crucial mechanism in preventing and combating corruption and the waste of public resources. Hence, the integrity, procedures, and adherence to the law in the composition of the Standards Committee are critical as they go to the heart of the Gambia’s governance and development processes.
In this regard, the Edward Francis Small Centre for Human Rights and Justice reserves the right to take legal action to ensure full compliance with the Financial Reporting Act 2013 if these issues are not adequately and urgently addressed. Establishing the Standards Committee must reflect the principles of good governance, which are transparency, accountability, and the rule of law, to foster confidence in our corporate and financial governance structures and processes.
