Africa-Press – Gambia. Muhammed Jah, Chairman of Agib Bank and Espace Motors, on Wednesday, September 17, appeared before the Local Government Commission of Inquiry to provide clarity on the procurement of 19 refuse trucks for the Kanifing Municipal Council (KMC).
Jah told the Commission that Espace Motors was awarded the contract to supply the trucks after winning a competitive tender. While he personally attended some meetings, he explained that all technical discussions were handled by his team.
He further disclosed that Espace Motors granted KMC a 10% discount—equivalent to D10 million—after the council requested additional concessions.
Lead Counsel Patrick Gomez, however, pointed out that the initial arrangement stipulated that the agreement was to be between Espace Motors and the Ward Development Committees, with KMC serving only as a facilitator.
In response, Jah said he was not involved in the technical deliberations but insisted that the contract was signed directly with KMC, not the individual wards.
“Well, like I said, counsel, I was not privy to the technical meetings, but what I know is that QuantumNet signed directly with KMC, and probably there was an internal agreement between KMC and different wards. For us, based on the contract we did not sign with individual wards,” he stated.
Counsel Gomez highlighted that the agreement made explicit reference to ward development committees, noting, “It is very clear about the relationship between Espace Motors and the ward development committees.”
In response, Jah clarified that Espace Motors’ contract was signed directly with the Kanifing Municipal Council (KMC), not its individual wards. “What we saw as a business is that KMC was flooding a tender, and of course, any internal agreement they have with their wards is internal to them,” he stated.
Counsel Gomez pointed out that the signed contract serves as the foundation of their agreement, with its terms and conditions binding on both parties.
Jah concurred but stressed that all discussions and meetings regarding the deal were held exclusively with KMC, not the ward committees.
Counsel Gomez reminded him that the signed contract formed the foundation of the agreement, stressing that the terms and conditions were binding. He further pressed Jah on whether he realized that KMC could not make the required 20 percent down payment.
Jah explained that this issue arose during pre-contract negotiations. He clarified that the down payment was not made because KMC stated it could not afford it. As a result, Espace Motors agreed to waive the deposit for the first batch of trucks, while maintaining the requirement for the second batch.
He acknowledged that Espace Motors assumed a financial risk in the event of default, but noted that the company would have repossessed the trucks, albeit at a depreciated value.
Jah further clarified that he had no knowledge of KMC’s approach to Agib Bank for a loan and did not recall the matter being discussed at board meetings. When asked about Espace Motors’ loan arrangements with Agib Bank, he maintained that the company held no such loan.
He concluded by reiterating that all discussions and agreements were conducted directly with KMC, not with its ward committees.
“What we have is “Musharrakah.” Agib Bank is completely different from conventional banks. It is an Islamic bank. When we have a project, we introduce our clients and the project to Agib Bank. If they agree to go into partnership on that project, we share the profit 60/40,” he said.
The counsel reminded Jah that Agib Bank pursued the Kanifing Municipal Council (KMC) for recovery of the funds, even though the agreement was strictly between KMC and Espace Motors.
In response, Jah explained that the matter involved a partnership account, stressing that Agib Bank acted out of concern over potential financial loss. He described the arrangement as a partnership in which all parties were expected to contribute to client recovery efforts.
Jah acknowledged that there was no direct contractual relationship between Agib Bank and KMC. However, he clarified that as KMC’s bankers, Agib Bank was considered part of the partnership.
“QuantumNet and Agib have a relationship, and QuantumNet can ask Agib to go after the payment,” Jah added.
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