Africa-Press – Gambia. The Committee asked the GM to give a brief overview of the company. In response, he stated that Jah Oil is a Gambian-owned company established in 2005. It operates 29 petrol stations and three remix stations nationwide and forms the foundation of the broader Jah Group.
The Committee further asked about Jah Oil’s status within the petroleum sector, the GM, in his responses, informed the Committee that the company has consistently been recognised as the largest taxpayer among Oil Marketing Companies (OMCs) in The Gambia over the years, and is one of the most critical agents in the petroleum sector.
The Committee asked whether they are familiar with a company named Creed Energy, the GM responded in the affirmative. When asked about his knowledge of Apogee, he explained that the company became aware of Apogee in the latter part of 2023 through informal sources. He noted that Apogee FZC was known to be selling petroleum products. He stated that his knowledge of Apogee was based on documentation, and the company was introduced to them through a representative named Aurimas Steiblys.
The GM stated that Jah Oil became aware of Creed Energy during a transaction wherein an invoice for petroleum products supplied by Apogee was issued in Creed Energy’s name. The Committee asked how this invoice was received. The GM explained that it was sent via email, and the discrepancy in the business name raised initial concern. However, Apogee responded that Creed Energy was acting as their representative, and such practice was considered standard.
The Committee asked whether Jah Oil had any dealings with Ultimate Biege. The GM stated there were no transactions or known relationships with the entity. In response to a question about the difference in operations between PSTV and Apogee, the GM noted that PSTV is a transparent and established international trader whose operations are generally limited to depot activities and not direct marketing on the ground. He further said that OMCs are typically registered in-country, whereas international traders’ activities are restricted to the border.
The GM expressed concern that Apogee appeared to operate independently, unlike routine trading procedures wherein traders must receive ullage requests from registered OMCs. He emphasised that Apogee was the only company granted ullage privileges during the period in question.
The Committee asked whether Jah Oil had applied for ullage space when Apogee FZC was in the country. In his response, the GM states that the company had made multiple applications, all of which were denied. Despite indications of available 63 spaces at the depot, their requests were rejected. Jah Oil, alongside other OMCs such as Oryx, experienced similar challenges. This prompted Jah Oil to write to Gam Petroleum to express frustration, with no positive response.
The GM added that, before Apogee’s involvement, ullage allocations were distributed based on OMC size and market share, with larger OMCs receiving higher allocations. However, during the period under review, Apogee was given preferential treatment. When asked to elaborate on the reason behind this special privilege, the GM stated that it could only be presumed. He urged the National Assembly to investigate further.
Continuing with his testimony, the GM indicated that Jah Oil wrote to PURA and the Ministry of Petroleum and Energy on 18th July, requesting equitable treatment. He noted that PURA responded by instructing Gam Petroleum to treat OMCs fairly and not to allocate most storage to a single trader. However, by the time of this response, the matter had escalated, prompting further engagement with the Ministry. Jah Oil also requested Authorisation to store its fuel in Senegal, as a lack of storage space in The Gambia requires it.
The Committee asked about fuel imported from Senegal, and the GM confirmed that it arrived with certificates of quality and quantity. While taxes were paid in Senegal, duties were paid to the Gambia Revenue Authority (GRA).
Regarding payment methods, the GM stated that invoices received from Creed Energy were paid via SWIFT transfers. Once confirmed, the product owner would issue a release order. He contrasted this with PSTV and Trafigura transactions made directly to the supplier’s account.
The Committee asked whether the GM was familiar with Mr Clément. He responded that he had never met Mr. Clément and had no business transactions with him.
The Committee asked about the company’s due diligence procedures. The GM indicated that his company conducts Know Your Customer (KYC) checks and due diligence on international suppliers, but assumes that local traders are already vetted by authorities.
The GM highlighted some of the most challenging moments in the petroleum sector. He stated that a multi-agency inspection involving PURA, Weights and Measures, and the Standards Bureau uncovered faults in depot flow meters, resulting in inaccurate recordings. He criticised Gam Petroleum for a lack of transparency and poor communication during this period and emphasised the importance of OMC involvement in policy development in the sector.
The Committee informed the GM that Apogee consigned a consignment to Creed Energy and Ultimate Biege. In response, the GM stated that the consignee of a shipment legally owns the product. If Jah Oil had been listed as the consignee, it would have held legal ownership. The Committee concluded by requesting the ullage applications submitted by Jah Oil between July 2023 and July 2024.
Findings
The investigation revealed that invoices for petroleum products supplied by Apogee were issued in Creed Energy’s name, a company incorporated in The Gambia without a licenc to operate in the petroleum business.
The Committee observed that payments were made in the name of Creed’s account at Ecobank and Zenith Bank.
The Committee observed that the local OMCS applied Ullage space. However, while Apogee FZC was in the country, a situation was created that allowed them to deposit their product and sell directly to the OMCs, which is a significant departure.
The Committee also observed that Apogee FZC has exploited The Gambia’s weak enforcement mechanism, allowing them to use the country as a haven to carry out their clandestine activities.
Testimonies also indicated that Apogee FZC was the first international trader to sell and market its petroleum product directly in the country, a serious departure from standard business practice in the petroleum sector.
The investigation revealed that for the first time in the country’s history, the petroleum sector and an international trader (Apogee FZC) have directly applied for ullage space at the depot and were granted the same, contrary to the existing norms.
The committee also noted that while Apogee FZC was present in the country, all other OMCs who applied were denied Ullage space.
The investigation revealed that Apogee FZC, an independent international trader, was granted privileges to occupy all ullage space in the depot during their stay in the country, forcing all other OMCS to buy petroleum products.
It is also noted that the payment methods for Apogee FZC contradict those for the same market players, eg, PSTV and Trafigura, where payments are made directly to the respective supplier’s account; however, in the case of Apogee FZC, payments are made to third parties in Dalasi before being sent to the owner/ suppliers.
Apogee FZC was granted exclusive usage of the entire ullage space at the national depot, forcing local OMCs to purchase petroleum exclusively. This monopoly disrupted supply relationships and skewed market conditions, favouring an unlicensed international trader.
For More News And Analysis About Gambia Follow Africa-Press
