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Foroyaa News Paper

Issue No. 78 (13-15 October, 2003)

EDITORIAL


PRESIDENT JAMMEH MUST RESPECT THE PEOPLE AND THE CONSTITUTION

"OPERATION EMPOWERMENT OF THE PEOPLE"

A government, which is a lawbreaker, has no moral authority to accuse anyone
of breaking the law. A head of state who romanticizes unconstitutional role
and promise to relapse to such a mode of governance also his government of
the integrity to lead a sovereign people. A legitimate government must
derive its authority from the consent of the people and must exercise such
authority to safeguard the interest of the people.

A government, which truly respects the people and the constitution, would
not send security forces to pressurize vendors to sell at prices determined
by arbitrary means. The President said that the prices of vegetables have
nothing to do with the depreciation of the Dalasi. He simply accused
vampires of raising prices. What is interesting companies like Youth
Development Enterprise, which Members of Jammeh’s cabinet present as example
of a patriotic business enterprise is selling rice in Soma at 380 Dalasis
per bag an increase from 335 Dalasis. In Serrekunda, Brikama and environ the
Youth Development Enterprise rice has increased to 395 Dalasis per bag. If a
company erected by the Majority Leader of the APRC can sell at such high
prices, what does government have to accuse other businesspersons of being
vampires.

Readers would recall that the AFPRC Government tried to transform the
Cooperative Union into an importer of essential commodities so as to
regularize then prices. Eventually, the union was driven to bankruptcy and
ended up with a deficit of 183 Million Dalasis. Ebou Jallow was accused of
going with 3 Million Dalasis meant to buy essential commodities for sale.
Government should stop blaming others for an economic crisis, which is a
product of their failed policies. They have simply succeeded in enriching a
few tycoons at national expense. What should be done is to have a consumer
price index desk officer at Department of State for Trade who will be able
to give regular information of the cost of importing goods. Association of
Importers, retailers and consumers should be formed to keep track of the
different prices and agree on retail prices of commodities. This type of
democratic dialogue is a better alternative to iron fist measures, which
drive moneychangers underground and the hoarding of goods, which can cause
artificial scarcity. Dialogue is the way to manage the crisis even though
the APRC regime has not put the productive base in place to solve the
crisis.

On the other hand, a government, which respects the constitution, would not
arrest and detain a person beyond 72 Hours without taking the person before
a Court. The constitution sets limit to detention by the executive because
of the aim to prevent indefinite detention without trial. The executive has
no arresting and detention powers. This should be carried out by the law
enforcement agents on the basis of law and the judiciary should intervene
after 72 Hours to determine the lawfulness of any detention.

A leader who orders the detention of his/her opponents with impunity to
teach them a lesson is grossly mislead. We repeat, President Jammeh has not
personal or divine power to rule, otherwise he would not have bodyguards to
ensure his personal safety. What he has control over is the power of the
state, which belongs to the people. He should not be allowed to abuse this
power if we want peace and stability in the country. There is therefore need
for a broad and all inclusive nationwide consultation among opinion leaders
in the political, cultural, religious, social and economic sphere so that we
can set up a non partisan council of wise men and women who would ensure
civil society control of political authority. Such persons of integrity
would be mandated by the people to intervene whenever necessary to counsel
government in those who wish to provide alternative governments to respect
the people and the constitution.

The consultation could lead to Mass National Conference or Rally for
Democratic Governance, which could be addressed by opinion leaders of
diverse backgrounds on a non-partisan platform. If such a conference attract
tens of thousands of concerned Gambians the council of wise men and women
would have the authority to be a free of sanity that ensure peaceful
coexistence of parties and people until the people decide who will manage
their affairs in 2006.

The road to peace is civil society control of political authority. This is
inconceivable until civil society becomes conscious, organized and active.
Complacency and apathy can only pave the way to a social disorder and social
disintegration.


BABANDING SISOKO AND THE 5 MILLION DALASIS DEBT TO CONTINENT BANK

Babanding Sisoko was given a Hero’s welcome by President Jammeh when he was
Chairman of the Armed Forces Provisional Ruling Council. Foroyaa followed
his transfer from the hotels to the State House Number Two in Fajara and was
treated like a visiting Head of State. Poor people used to queue as he threw
money into their midst and watch them to scramble for it.

Babanding was later said to have bought Amie’s Beach Hotel, which was
originally owned by Saihou Ceesay. Babanding eventually changed the name to
Mariatou’s Beach Hotel. Eventually, Babanding’s financial kingdom collapsed.
Today he left a debt of Five Million Dalasis with the Continent Bank.

It is amazing that this money has still not been paid. We strongly urge the
government to show a good example by using the funds derived from the sale
of Mariatou’s Beach to Social Security and Housing Finance Corporation at a
price of 45 Million Dalasis. Infact the Social Security is spending 164
Million to rehabilitate the hotel. This is more than thrice the amount owed
to Continent Bank. Poor depositors are languishing in hardship when people
like Babanding and the politicians he patronized to win elections are yet to
accept responsibility for payment of the debt to the Continent Bank. What
has happened to the 45 Million Dalasis paid by Social Security for the
purchase of Mariatou’s Beach.

EXCHANGE RATES AFTER OPERATION NO COMPROMISE

Long queues can be found at the Standard Chartered Bank as people find it
difficult to see the mobile money changers in the street. The President
promised that Operation No Compromise will bring down the depreciation of
the Dalasi. By October 6th the buying rate for the Pound Sterling was D53
per Pound at Trust Bank, D53 at the Standard Bank, D48 at IBC, D54 at AGIB,
D50 at Guaranty Trust, D50 at FIB. One can see that the rates are different
as one moves from one bank to the others. Now on the 10th October, the
buying rate of the Pound stood as follows:- D52 at Trust Bank, D52 at
Standard Bank, D48 at IBC, D52 at AGIB, D51 at Guaranty Trust, D50 at FIB.

Apparently, the buying rate remained the same at Standard Bank, IBC and FIB.
Infact Guaranty Trust Bank increased the rate from D50 to D51. AGIB reduced
its rate from D54 to D52. Trust Bank also reduced the rate from D53 to D52
per Pound. An analysis of the figures shows that the changes are very
slight.

On the Selling Rate

Trust Bank sold the Pound at a rate of D56.60 on the 6th October, while the
rate fall to D54.50 on 10th October; Standard Chartered Bank sold at D54 on
the 6th and retained the same rate on the 10th October; IBC sold at D50 per
Pound on the 6th and increased the rate to D54 by the 10th October, AGIB
sold at D57.10 on the 6th and reduced the rate at D53 by the 10th; Guaranty
Trust Bank sold at D53 by the 6th; FIB sold at D52.80 and both maintained
the rates on the 10th. Clearly, Operation No Compromise is yet to have any
remarkable impact on the reversal of the depreciation of the Dalasi. Foroyaa
will continue to monitor the rates for two months before making a scientific
analysis of the data.



THE TRUE STATE OF THE GAMBIAN ECONOMY

PART III

In the last issue we emphasized that government should take a fresh look at
the economy before adopting a policy that will not put the Gambian people
against each other.

The first point to not is that the Gambia government needs to keep enough
foreign exchange in its external reserves as required by the IMF and World
Bank amounting to Five Months of import cover. In 2002 the net foreign
reserves amounted to D1.7 Billion or D1700 Million for 5.2 months of import
cover. If the reserves drop below five months the Gambia will not get the
type of donor support that it requires. This will prevent foreign exchange
from coming into the country from the donor community. Secondly, the
government ought to realize that as long as its debts continue to increase
it will require to scramble for foreign exchange to maintain an external
reserve to repay the loans. This will drain the commercial banks of foreign
exchange and create scarcity for the business community. This can lead to
difficulty in importing goods and the type of scarcity that can result in
inflation flight of business from the Gambia. It means that government must
either contain its growing indebtedness or increase the export earnings of
the country.

In order to enhance growth of the productive sector government must reduce
its borrowing from the commercial banks through the issuing of Treasury
Bills and leave them to give loans to producers of what could be sold
internally to prevent increase in imports or what could be sold externally
to earn foreign exchange total loans of the banking system amounting to just
27.5% total assets and the large portion of the assets of the bank comprises
Treasury and Central Bank Bills. The banks are therefore not linked to the
productive sector of the economy, which should generate foreign exchange or
reduce imports. At the end of 2002 the volume of foreign exchange
transaction is the inter bank market rise to 9.2 Billion. This shows the
amount of trading that is taking place at the money market without impacting
on the productive base in the positive manner. The economy must therefore
enhance its agricultural and processing base through huge investments to
ensure food self-sufficiency and the production of value added products.

In the short term the government must recognize that the Gambian economy is
linked to subregional economy through cross boarder trading both at the
formal level through re-export trade and an informal level through
smuggling. Those engaged in this trade have been using the CFA as a
subregional currency. This has been supportive of the Gambian economy by
guarantee access to goods even when our foreign exchange earning capacity
from tourism, on groundnuts went down. For example in 1994 the tourist
industry was ground to be a stop but this did not affect the availability of
goods. Hence the objective is not to stop earning from CFA. What government
should do is to enhance foreign exchange earnings so that the abundance of
foreign exchange would lead to the lower of demand and the depreciation of
the value of foreign currencies.

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