The International Monetary Fund (IMF) today warned that the world economy is experiencing a major downturn in the face of the most dangerous financial shock in mature markets since 1930s, and called for strong and coordinated actions to avoid worse-case scenarios. The IMF’s latest world economic Outlook (WEO) projected global growth to slow substantially in the latter part of 2008, before beginning a modest recovery in the second half of 2009, Growth in advanced countries will be close to zero until at least the middle of 2009, while growth in emerging and developing countries will slow to substantially lower rates than in the recent past. The WEO projects global growth at around 3 percent in 2009.

“The world economy has entered a major downturn after being hit by two large shocks: a surge in oil commodity prices and the expanding financial crisis,” said Olivier Blanchard, the IMF’s Economic Counsellor and Director of Research. “The financial crisis has clearly gotten worse, and no country will be fully immune from the effects on the real economy.

It is too late to avoid a slowdown, but strong and coordinated policies can avoid even worse scenarios. In many countries, plans are already being put place to help resolve the crisis.”

The recovery measures include both financial and macroeconomic policies, Mr Blanchar noted.” while uncertainty remains, we are hopeful that these measures will contain the crisis and return trust to the markets, “he said. “restore trust should result in credit coming back- although it will come back only slowly.”

He said  in the short run, systemic financial actions, from the provision of liquidity to the purchase of assets to the injection of capital, are key to restoring stability and confidence in financial markets, while monetary and fiscal policies in many countries  can help soften the effects of decreasing demand and break the negative feedback loop between the financial sector and the real economy.” with such policies in place, it is reasonable to expect recovery to start in 2009 and gather strength in 2010,” MR Blanchard said.

The WEO projects global growth year on year will slow sharply to 3.9 percent in 2008 from 5.0 percent in 2007, and continue slowing to 3.0 percent in 2009. 
The  US economy is slowing after a relatively strong second quarter, as support from fiscal  stimulus has ebbed and the impact in US credit crisis is intensifying, according to the WEO, which estimates the US will record year on year growth of 1.6 percent in 2008 and 0.1 percent in 2009 against 2.0 percent in 2007.

“Policymakers around the world are facing the daunting task of stabilizing financial conditions while nursing their economies through a period of slower growth and higher inflation,” Mr Blanchard said, adding that financial markets and institutions must be placed on a healthier footing, and supply-demand responses in commodity markets must be strengthened.

We said in these page the last time that it will all be there for us to see at the end of the exercise and as it is at the moment, things are slowly and surely becoming clear for the general public to see.

It has been reported that the National Assembly is going to take legal action against those defaulting Public Enterprises/Agencies that fail to submit their annual reports, accounts and financial statements by the set deadline of 2ndSeptember 2008.

This must be seen to be done because nothing can be more accountable than holding Public Enterprises/Agencies of any country accountable to the taxpayers.

During a press briefing last Thursday at the National Assembly, the speaker of the National Assembly, Hon. Fatoumatta Jahumpa-Ceesay, who is also the chairperson of the Joint Committee stated, “after sending reminders to all Public Enterprises/Agencies to submit their annual reports, it has come to the notice of the committee that some Enterprises/Agencies blatantly refused to submit their annual reports, accounts, financial statements for parliamentary scrutiny or even refuse to attend the joint session as scheduled.”

Whether they’ve refused to submit or not, Public Enterprises/Agencies should know that they are only deceiving themselves, because sooner or later their inadequacy or whatever will stick out like a sore thumb. Then it will be very interesting for us all to see who was not doing something right or who is not taking the taxpayers seriously.

Yes the exercise, as we expressed recently in these pages, may not be popular with some, especially those involved in dubious dealings, but we should all understand that it is geared towards performing lawful checks, scrutiny and oversight over Public Enterprises and Agencies and the public service delivery systems.

Taxpayers should know how their money is being used and this is one way of enabling them to know about it. We would therefore want to encourage the joint committee of the National Assembly to go ahead as soon as possible and take legal actions against defaulting enterprises/agencies. . In a significant way, this will serve as a deterrent to those public enterprises/agencies that would in future engage in such practices.

The Kanifing Municipal Council (KMC), Gambia’s biggest council, has refuted allegations that the council is currently in serious financial crisis.

Pa Kalipha Sanyang, KMC’s Public Relations Officer, maintained that this is never the condition as purported when this paper went to the council yesterday to take in the council’s side of the story over allegations that the council is really in serious financial crisis.

Recent reports have it that the Kanifing Municipal Council is currently facing serious financial crisis, the state of affairs which reassuringly illustrates the sustenance of what many describe as the gloomiest days of the council, as well as bring about a crisis of confidence in KMC.

Sources said the municipality has to turn to the banks for overdraft to be able to pay last month’s salaries.

“Even the tractors can no longer go around to collect garbage as usual because the municipality cannot foot the bill of fuel for them,” the sources said.

According to PRO Sanyang, during this time of the year (lean period) the council receives not much money.

He explained that the peak period, a time when the council usually collects much, runs from January to July. He noted that usually towards the last quota of the financial year, the cash flow goes down naturally.

“The council however remains as solid as ever and we are living up to expectations both in terms of service delivery and overhead expenditures. Never in the history of this council was an overdraft obtained to pay salaries. We had paid salaries as early as the 25th of this month and the tractors are busily serving their purpose.

He revealed that the council is owed well over D70, 000, 000.00 (seventy million) in arrears, which he maintained is negatively impacting on the operations of the council.

He also has avascular necrosis of the head of his left femur secondary to his sickle cell disease. The report states, “we as a board have agreed that he will benefit from overseas treatment for the avascular necrosis of the head of the femur which will need surgical treatment as well as the chronic oesteomylisis which can be followed up at the orthopedic clinic.”

The report also indicates that after examination it is clear that the young man is in urgent need of overseas treatment as the only means of restoring him to a normal life. He is suffering every day and his health is deteriorating all the time. Habibou is seeking help from anyone who is in a financial position to help him in his predicament. He can be contacted on 9325894.

The financial controller for the Community Driven Development Project for CRR North, Mr. Lamin Njie, has said that the CDDP aims to assist local communities in planning and implementing social and economic activity to improve their living standards.

This work is carried out in conjunction with local government authorities.

Mr. Njie made these remarks in an interview with The Point at his office in Kuntaur Wharf Town Niani district recently.

According to him, the CDDP project began with a lot of study and has a project implementation manual, a financial and administration manual and field guides for use by extension workers at community level.

He further stated that the financial and administrative manual shows how funds are to be used both at the LGA and village level. He added that the project has three components a community development facility, capacity building and implementation arrangements. Each of these components has an allocated fund to run their affairs.

In relation to fund flow arrangements, Mr. Njie said local government authorities will be responsible for disbursing the formula based grant for development activities at village and ward levels. The financial controller at the area level is particularly in charge of dispersing funds to villages and wards in accordance with the requirements. This happens after endorsement by the SDP and the PEC when each village or ward will enter into a triplicate agreement with the CDDP and the local government authorities. On the basis of the triplicate agreement, signed by the different villages or wards, the financial controller will prepare a replenishment request and send it to the PCT. Once a project has been positively appraised the VDC/WDC chairman and the RRI team leader enter into a financial agreement with the community development officer on behalf of the CDDP. He stated that upon the signature of that agreement the financial controller is requested by the CDO to release the first tranche of funds into the control of the Village Development Committee. The VDC’s and WDC’s will then request subsequent replenishment of their funds in their respective areas based on physical progress which will be certified by the relevant CDO based on project reports received.

Danieh Osagie,  proprietor of Lamin Institute for Professional Studies (LIPS) said LIPs is in high spirit  to improve the welfare of young and needy Gambians through scholarship packages and job creation, with a sound enterpreneurial skills.

He made this remark during an exclusive interview with the press at his office in Lamin  which is in relation to the institute’s forthcoming anniversary, the fifth of its kind,  scheduled to take place soon.

According to Mr Osagie LPS is not only interested in financial gains, but also to contribute to the welfare of the nation. ‘‘Since its inception in 1993, LIPS has provided over 500 (five hundred) scholarship packages to the physically disabled persons and the most needy students  facing financial constraints, with the aim of empowering the youths.
 
He went further to say that LPS  always  ensure that their students perform successfully, noting that 80% of their graduants have been able to secure  jobs and others are self employed. 

 He added  that, LIPs doesn’t compromise standard and quality.  “We will continue to serve the Gambian youths, so as to enable them  build a better future for themselves,” he assured.

He finally expressed satisfaction about the way  Gambians have taken ownership of the institution.He also used the opportunity to thank  parents and guardians for the confidence and trust they have in the institution.  On his final statement he disclosed to the members of the media that he is now appointing Joseph Osagie as the new  country director.

Honourable Oley Sey, nominated member of the National Assembly, has become the latest victim of what is widely believed to be a crusade against corruption. According to reports monitored on the national television, the nominated National Assembly Member’s current problem came about after President Jammeh’s fulfilment of a pledge to support a nursery school named after his late father, donating D500, 000.00 to the school. It so happened, the GRTS report stated, that the money fell into the wrong hands, one of which is Oley Sey’s.

According to Sukuta Jammeh, the officer handling the investigation, the said amount was given to the Chief of Protocol, Mr. Alagie Ceesay, on July 29th 2008, who gave it to the Secretary of State for Education for onward transmission to the community of Abuko. He added that the Mayor of KMC, who was also present during the handing over, advised that the money be banked in an account with three signatories from the community. This, Mr. Jammeh continued, was not done. But instead one Abdourahman took the said amount to Honourable Oley Sey’s house. “According to him, he gave her D400, 000.00 and retained D100, 000.00, which Oley denied but accepted receiving D200, 000.00 from him,” he revealed.

The  investigator went further to reveal that the said amount of D200, 000 was since recovered from Oley.

Meanwhile, the investigation is in progress to recover the remaining balance missing.

The erstwhile International Bank for Commerce (IBC) has been rebranded to its successor Bank PHB, which is an extension of a leading financial institution in Nigeria’s banking industry.

The new brand was formally unveiled on Friday at a dinner held at the five-star Sheraton Hotel in Brufut, presided over by the secretary of state for Finance and Economic Affairs, Musa Gibril Bala Gaye, on behalf of President Alhaji Dr Yahya Jammeh.

Bank PHB is reputed for its superior value customer services and extensive experience in banking. It is also renowned for its innovative customer-centred services, as they showcase a wide-range of alternative financial products that run to offer its customers with solutions to their unending financial needs.

The launch was also attended by the speaker of the National Assembly, Hon Fatoumatta Jahumpa Ceesay, the governor of the Central Bank of The Gambia, Bamba Saho, high profile officials of the private sector including the officials of Bank PHB, business people, among other dignitaries.

“I am aware that Bank PHB is the fastest growing bank in Nigeria, ranked among the first five among Nigeria’s 24 banks. Our expectation is that you bring that tradition of excellence into The Gambia, fostering healthy competition in the banking industry here that will ultimately lead to a significant improvement not only in the banking products and services, but also stimulate overall improvement in the economy,” said SoS Gaye, while delivering a speech on behalf of the president, who was honoured as the special guest of honour.

Affirming that the president takes the development in the banking sector very seriously, as it is the pivot on which economic activities are hinged, the Finance and Economic Affairs SoS assured the bank that they would continue to give support and play their role as regulators.

Gambia: Gateway

“The strategic location of The Gambia has always endeared it to the hearts of investors. In the 18th and 19th centuries, the coast of The Gambia was a major port for the lucrative trade in slaves, which were brought in by Arab traders through Gao and Timbooktu. The Gambian coast was also used for the trade in gold and ivory by both the Portuguese and English traders,” said the SoS, while buttressing the longstanding economic significance of The Gambia, as strategic location.

He then continued: “The country was so important to all the empires it fell under that, at a time during the early and late 19th centuries, it was the subject of a constant tussle between the English, French and Portuguese colonialists.”

Though relatively small, SoS Gaye described The Gambia as a country where untapped resources are flowing.

“I dare say that your choice of The Gambia as the first port of call in your expansion into the West Coast, and indeed the entire Africa is a wise and promising decision,” he noted, while welcoming the bank to The Gambia.

The Finance and Economic Affairs SoS was hopeful that the emergence of Bank PHB to the country’s banking landscape, with the injection of more funds, and an abiding promise of better services for the people, indicates “our vision of a Gambia that will ultimately become an investment haven for the best business in the world”.
Chuks Chibundu, the managing director of Bank PHB Gambia, said the event heralded a significant milestone in the economic history of The Gambia.

“This is primarily for two major reasons: First, for the people of Gambia, Bank PHB offers a major alternative in innovative financial solution and unparalleled customer experience. Our retail strategy was recently hailed by Renaissance Capital as the most well thought out in the Nigerian banking industry while a leading national paper named Bank PHB the most innovative bank in Nigeria,” he declared.

He then continued: “Secondly, for us in Bank PHB, today’s unveiling marks the first expression of our global expansion drive expected to soon see us establishing strategic dominance in West Africa in the short run and eventually make a major inroad in different parts of Eastern and Central Africa.”

Track record

According to the Bank PHB MD, his bank has become a life experience for the average Nigerian, popular for its innovativity, creativity, resilience and foresight.

“Bank PHB’s 2007 financial report card also confirms it emergence as Nigeria’s eight biggest bank with total assets and contingents of N480 billion (US$84 Million) representing increases of 155 per cent in total assets and contingents and 197 per cent in profits. Bank PHB controls about 70 per cent of the Nigerian stock exchange market capitalisation,” Mr Chibundu added.

Investment haven

Noting that they find The Gambia a strategic business destination, Mr Chibundu said The Gambia’s corruption index is about the lowest in Africa, making it a safe haven for investment, relaxation and business.

“Bank PHB is in The Gambia to support the government’s effort in expanding the economic opportunities available to the average Gambian representing all classes of customers. Our retail suit offers financial options that leave no customer stranded outside the financial space,” an optimistic Bank PHB boss stated.

Ahmed Koro, the executive director of Bank PHB in Nigeria, who represented his chief executive officer, said they are in The Gambia to reach out to the “unbanked, the under-banked and indeed Africans both at home and in the diaspora, who have yearned for the customer experience which only Bank PHB offers”.

Undertakings

For her part, Fatou Mas Jobe, the group head of Retail Banking, who delivered the vote of thanks, traced the historical relations between Nigeria and The Gambia, which could be traced as far back as The Gambia’s Independence in 1965, before delving into the economy.

Mrs Mas Jobe, a redoubtable Gambian banker, who is famous for her reservoir of innovations, said The Gambia has in recent years witnessed a steady growth in its economy, enhanced by the economic opportunities.

“For us as an institution just a few years into our operations, our scorecard speaks so eloquently of our service excellence and commitment to employee welfare. A few months after assuming management responsibility of the erstwhile IBC; we effected a significant upward review of salaries thus making us one of the highest paying banks in The Gambia,” she said, while elaborating on other significant undertakings by the bank.

“Through our convictions and actions both in financial management and human development, we have become synonymous with ‘Thinking Possible’ and extraordinary achievements. Bank PHB is the first Nigerian corporate organisation to partner with the US government in the sponsorship of its most prestigious scholarship programme: The Fulbright Scholarship,” she said.

Bank PHB’s Mas Jobe was of the hope that in the next few years, Bank PHB would have been fully transformed into a true financial supermarket, providing services not only in banking, but also in asset management, insurance and other related financial services.
 
She then thanked President Jammeh, the government and the people of The Gambia for giving them the opportunity to contribute to the growth of the economy.