EFSCRJ raises alarm over establishment of standards committee, demands compliance with financial reporting act

The Edward Francis Small Centre for Human Rights and Justice (EFSCRJ) has voiced strong concerns regarding the planned inauguration of the Gambia Accounting, Auditing, and Corporate Governance Standards Committee by the Financial Reporting Oversight Board (FROB) on January 29, 2024.
The Centre, in a public statement, highlighted alleged violations of the Financial Reporting Act 2013, which it claims undermine professionalism, transparency, and accountability in the country’s financial reporting system.
“We have obtained information that the Financial Reporting Oversight Board will inaugurate the Standards Committee. We are hugely concerned about this development in light of the legal and procedural requirements for the establishment of this august body,” the statement read.
The EFSCRJ pointed out that the Financial Reporting Act 2013 stipulates clear guidelines for the establishment of the Standards Committee. According to Section 66, the nine-member Committee should comprise five representatives elected by the Gambia Institute of Chartered Accountants (GICA) and four representatives appointed by FROB. However, the Centre alleged that GICA bypassed the election process, opting instead to pass a resolution to select its representatives.
Furthermore, FROB’s appointment of two of its own board members—Auditor General Modou Ceesay and Finance Director of the Central Bank of The Gambia, Attikan Dibba—has raised serious concerns about potential conflicts of interest. The Centre noted that Section 66(4) of the Financial Reporting Act mandates the independence of the Standards Committee, emphasizing that its decisions should not be subject to approval by any other entity, including FROB itself.
“Given the mandate of the Standards Committee, the appointment of these two officials raises serious questions about the independence of the Committee,” EFSCRJ stated.
In addition to procedural lapses, the Centre criticized the lack of gender inclusivity within the proposed Committee, with only one female member out of nine. This falls far below the recommended 30% gender representation benchmark in national institutions.
In response to these issues, EFSCRJ issued a series of demands:
1. FROB and GICA must adhere strictly to the Financial Reporting Act 2013 in the composition of the Standards Committee.
2. Both bodies should disclose the procedures and criteria used for the election and appointment of members, including publicizing reports of the process.
3. Stakeholders should prioritize gender inclusivity in the Committee’s composition.
The Centre underscored the critical role of the Standards Committee in ensuring transparency and accountability in corporate governance and financial management. Accurate financial reporting, it noted, is essential for informed decision-making, prudent resource management, and combating corruption.
“Above all, accurate financial reporting is a crucial mechanism in preventing and combating corruption and the waste of public resources. Hence the integrity, procedures, and adherence to the law in the composition of the Standards Committee are most critical,” the statement emphasized.
EFSCRJ also warned that it reserves the right to take legal action if the issues are not urgently addressed. “The establishment of the Standards Committee must reflect the principles of good governance—transparency, accountability, and the rule of law—to foster confidence in our corporate and financial governance structures and processes.”
The Centre concluded by reaffirming its commitment to promoting good governance in the spirit of Edward Francis Small, declaring 2025 as “The Year of Transparency and Accountability.”