Finance Minister Confirms Government’s $10M Rescue for GAMCEL Salaries

Finance Minister Hon Seedy Keita tabling © Askanwi Media

By Edward Francis Dalliah

Months after concerned GAMCEL staff demanded payment of their outstanding December 2024 salaries, the Minister of Finance and Economic Affairs, Hon. Seedy Keita, revealed that the government had appealed to the World Bank and secured a $10 million to ‘bail out GAMCEL’s salaries for the last two months.’ This revelation came during an interview on Coffee Time with Peter Gomez on West Coast Radio on Tuesday, 11th March 2025.

GAMCEL, a state-owned enterprise under Gamtel, has been grappling with a severe financial crisis that has impacted both its service delivery and the welfare of its staff. This situation has led some employees to express dissatisfaction with how their management has been handling their affairs in recent years.

A petition submitted by those concerned staff to the management and other key government institutions on 20th January 2025 outlined ongoing issues with salary payments. The petition stated that “since September 2022, there have been multiple delays in the payment of staff salaries.” It also highlighted those salaries due at the end of December 2024 that remained unpaid at the time of the petition.

During his appearance on Coffee Time, the Finance Minister confirmed that, through government intervention, staff had finally received their last two months' salaries. These payments, Hon. Keita said, were made possible by a $10 million budget support grant from the World Bank in 2024, which the government had secured after appealing to the international bank for a “social package for GAMTEL and GAMCEL staff.” He stated that the bank had responded positively to the government’s request.

A press release from the World Bank, dated 6th December 2024, highlighted the approval of a “$30 million budget support for The Gambia to enhance productivity and improve economic governance.” The report further stated that part of the grant aimed at “improving procurement systems; bolstering the economic governance of state-owned enterprises (SOEs); increasing domestic revenue mobilisation; and reinforcing climate and social resilience.”

However, questions remain about how the government will account for this funding in the 2024 budget execution, as it was received in late December 2024. GAMCEL staff only petitioned their management in late January 2025. If, as claimed, the $10 million funds provided by the World Bank were used to cover the outstanding December and January salaries, this suggests a shift in the execution timeline, extending from 2024 into 2025.

Our reporter reached out to GAMCEL employees, who confirmed receiving their salaries. However, they remain concerned about whether the situation will repeat, given that the company is still operating at a financial loss. According to the 2024 SOE Biannual Financial Report, the company posted a net loss of D69 million in the first half of 2024, despite generating D59.5 million in revenue. The report indicated that high operating costs contributed to an operating loss of D65 million.

A significant factor in GAMCEL’s financial distress is its disproportionate administrative and staff expenses, which totalled D84 million, which translates to 142% of its total revenue. Worryingly, 71% of the company’s earnings were directed solely toward staff salaries, leaving little room for reinvestment in infrastructure or service improvements, based on the report.

However, despite what the report stated, staff have raised concerns about repeated delays in salary payments. Our reporter managed to get hold of the Staff Service Rule and found out that the rule stipulates that “salaries and allowances shall be paid monthly in arrears on a date determined by the Managing Director, but not earlier than the 25th of the month.” This means that staff will receive their payments for the month not earlier than the date of the 25th of that month, but it could be later depending on the Managing Director's decision.

Employees have also expressed frustration over deductions for Credit Union payments, which they claim ‘have not been accessible for over two years.’ An even more troubling issue, highlighted by the staff in their petition is the deduction of personal income taxes from their salaries, which appear not to have been remitted to the relevant authorities.

This failure to pay taxes has reportedly hindered employees’ ability to access essential services, such as vehicle clearance. This situation suggests that the company may be violating the GRA’s regulations, further complicating its already precarious financial position.

Despite the World Bank’s $10 million bailout alleviating immediate salary arrears, GAMCEL’s ongoing financial struggles, mismanagement, and compliance issues suggest that the company’s challenges are far from over. Staff remain concerned about the sustainability of their payments and the future of the company, raising uncertainty about its long-term recovery or potential privatisation.