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. We are hugely concerned about this development in light of the legal and procedural requirements for the establishment of this august body. We have noted that this Committee is being established in total contravention of the Financial Reporting Act 2013, which is a huge 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 as well as the Financial Reporting Oversight Board (FROB) under Part 8 as public bodies. The Act provides for the registration of chartered accountants, practicing and registered auditors and the setting of 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 in accordance with 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 any election but rather passed a resolution to select its five representatives. The law requires an election to be conducted. 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 being board members of FROB creates a potential conflict of interest and undermines the independence of the Standards Committee.
We are further concerned with the grossly limited inclusivity of the proposed Standards Committee. 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 and Gambia Institute of Chartered Accounts as well as all other stakeholders to uphold and abide by the Financial Reporting Act 2013 in the composition of the members of the Standards Committee.
- FFROB and GICA to proactively disclose the procedures and criteria for the election/selection and appointment their members for public consumption. In this regard, we urge them to publicly share reports of the process.
- All stakeholders prioritize gender representation in the composition of the body.
We recognize and appreciate the unique and important 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 in decision making, prudent internal financial management, judicious use of resources and effective service delivery in fulfilment of fundamental human rights.
Above all, accurate financial reporting is a crucial mechanism in preventing and combating corruption and waste of public resources. Hence the integrity, procedures and the adherence to the law in the composition of the Standards Committee is most critical as it goes to the heart of the governance and development processes of the Gambia.
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. The establishment of 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.