By Muhammad Bah
According to the Management of the Public GSM Company, Gamcel, the Company operated at a loss in 2013 amounting to D234 million compared to D157 million in 2012. This statement was made before the Public Accounts and Public Enterprises Joint Committee of the National Assembly during their annual review and scrutiny of the performance of Gamtel/Gamcel on Thursday 22 January 2015.
The Managing Director, Mr. Baboucarr Sanyang told the PAC/PEC joint committee that the situation has been aggravated by the depreciation of the dalasi against the major international currencies, doubtful debts, interconnection, depreciation and dealers’ commission. He said interest receivable and similar incomes dropped from D875,000 in 2012 to D760,000 in 2013 representing a decline of D115,000 or 13%.
Mr. Sanyang explained that the losses made during the year, before interest and tax, increased from D157 million in 2012 to D234 million in 2013 representing increases of 76 million or 48%.
He highlighted the interest charges on loans and bank overdrafts have increased from D32 million in 2012 to D36 million in 2013, representing an increase of D4 million.
In his presentation on behalf of Gamcel, he told the PAC/PEC joint committee that the tax charged was based on total revenue due to the fact that the company registered a loss in the year, therefore the corporate tax for the year was D11 million in 2013 compared to D10 million in 2012, representing an increase of D1 million.
“The balance sheet showed a drop in the value of non-current assets from D667 million in 2012 to D540 million 2013 representing a decrease of D127 million or 19%. Investment during the year was D88 million compared to D300 million in 2012,” said Director Sanyang.
He added: “The accumulated depreciation charged against the cost of assets has increased as reported in the audit accounts, the total current assets increased by D3 million and the current liabilities increased from D73 million in 2012 to D514 million in 2013, representing an increase of 38%.
He drew the conclusion that the escalation resulted from the increase in interconnection debt from D78 million in 2012 to 217 million 2013. Similarly, long-term borrowing dropped from D153 million in 2012 to D133 million. This drop was attributed to the settlements made during the year.