FOROYAA – BURNING ISSUES

Issue Number 94/2003, 8-10 December, 2003

Editorial

Why Parties Opposed to APRC are Silent on its Division

Many people are wondering why the Opposition did not try to capitalize on
the serious split that is developing over Baba Jobe’s arrest. Readers would
recall that many National Assembly Members tried to visit Members of the
Executive to urge them to intervene after Baba was arrested but to no avail.

Apparently, many APRC National Assembly Members received material support
from Baba Jobe. Many other party members have been receiving goods from the
Youth Development Enterprise. This gave Baba Material Influence. Maybe this
is why President Jammeh was pressurized to say that he is infact the force
behind the Youth Development Enterprise, eventhough the statement was
subjudice, especially when the case that is to start on 8th December, is
precisely about the Youth Development Enterprise. From the comments of APRC
Party stalwarts we can gather that some are in support of what is happening
to Baba while others are opposed to it.

In our view, Gambia is bigger than the APRC. The strength of an alternative
government must not be determined by the weakness of a party in office, but
the viability of its alternative policies. A party, which cannot build unity
and trust in its ranks based on honesty, justice and the placing of national
interest before personal interest cannot possibly promote national unity.
What is important is for political parties opposed to the regime to leave
the people to be their our judges of the record of the regime and dwell on
building an alternative political agenda that can earn the confidence of the
people in particular and the international community in general. This is the
way forward.


GAMBIA IN DEBT CRISIS

TOTAL REVENUE = 2171 MILLION

DEBT SERVICE = 1573 MILLION

72% OF REVENUE TO REPAY DEBTS

The Gambia Government is anticipating to raise 2171 Million as revenue for
2004 excluding grants. Raise 2171 Million as revenue for 2004 excluding
grants. An overview of debt service for 2004 however indicates a payment
requirement of 1573 Million Dalasis. This simply means that 72% of revenue
collected should go to pay debts. This is the message that should be
gathered by all Gambians from this year’s budget presentation by the
Secretary of State for Finance and Economic Affairs.

Secondly, the revenue will fall short of what is required to meet government
expenditure by approximately 895 Million Dalasis. Government has the
capacity to raise 2171 Million as revenue and 410 as grants. However because
of the State of the Central Bank and the lack of Audited Accounts those
agencies, which used to give budgetary support have decided to put an
embargo on those funds until the government meets all criteria for
accountability. The government now has to clean up the mess in its financial
institutions and put the Auditing system in order before being considered
for budgetary support by the Donors.

We have emphasized over and over again that taking loans to carryout
development projects and issuing Treasury Bills without a corresponding
development of the productive base of the economy will only lead to a debt
crisis. The government however argued that Gambia was the Jewel of West
Africa; that its Donors had claimed that it was among the best in economic
performance. Now the Donors are singing a different tune.

We hope the Gambian people will begin to understand that most of the debts
being paid are domestic ones. The foreign debts and interests being paid are
past ones. In short, most of the foreign loans being taken by the government
will be paid in twenty or thirty years. The domestic debts however comprise
both short term and long term treasury bills. The interest on the short-term
treasury bills to be paid in 2004 amounts to D706 Million, while the long
term amounts to only D45 Million. The interest on the foreign debt amounts
to D242 Million. These payment of the principal of the foreign debt is what
amounts to D578 Million. It is therefore absolutely incorrect to say that
the government has just inherited a debt burden. The Truth is that the
government is depending on treasury bills to meet its expenses. This is
unsustainable. A country cannot develop by debts alone!!

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