Issue N0.14/2004, 16-18 February, 2004

Editorial

PRESIDENT JAMMEH AND THE OIL QUESTION

Is the end of the dark days in sight?

Whole-heartedly announcing the discovery of oil, President Jammeh
pronounced, "It has spelt the end of the dark days of the Gambia." He
also indicated that Gambia would be transformed from the smallest and
poorest country to the richest in the world. A word of caution must be
expressed here. President Jammeh must avoid making sweeping statements.
Oil is an important resource, indeed a strategic resource, but it is not
the be all and the end all. Even though oil is a strategic material the
right policies and leadership must be in place to ensure success. Nigeria
has large oil reserves and other strategic minerals. Apart from
languishing in poverty people living in the oil-producing region of
Nigeria have to cope with the enormous environmental problems brought
about by oil production.  South Africa has gold, diamond and other
resources but most of the blacks are still poor. According to a South
African politician unemployment has reached 8 million, 22 million
languish in poverty and 5 million are HIV infected. Angola, Gabon, Sudan
and other African nations are oil-producing countries but that has not
made them donor nations. On the other hand, Cuba is not an oil producing
country but they can afford to provide The Gambia with more than 150
doctors. Poverty and misery continue to plague Africa despite being one
of the richest continents in the world. What Africa lacks is an
enlightened leadership that is committed to the masses; a leadership that
can digest and diagnose its problems and prescribe appropriate solutions.
If the capital generated from the production of oil is not ploughed back
to the productive sector, to fishing, agriculture, light industry, etc,
to generate more wealth, Gambia would continue to face crises and remain
vulnerable to the visicitudes of the international economy such as
fluctuating oil prices. The end of the dark tunnel will be in sight when
the Gambian people become enlightened and empowered and begin to carve
their own destiny.

PRESIDENT JAMMEH ANNOUNCES OIL DISCOVERY

In early January this President Jammeh told the nation that he had
something, which is going to take The Gambia out of poverty in the short
run, something that would transform The Gambia from a donor recipient to
a donor nation. But he said he was not going to let the cat out of the
bag at that time. Foroyaa indicated then that existence of mineral was
not his making and that there was no need to make the finding a secret.
We also pointed out that titanium ore deposits were discovered in the
Gambia as far back as 1953. We further noted that data show that Gambia
possesses possible Petroleum prospects. We also stated that infact a
Commissioner of Petroleum was appointed before President Jammeh assumed
power. On Friday, 13th February 2004 President Jammeh announced the
"existence of oil in very large quantities" in Gambian waters. He gave
the history of the earlier prospecting for oil dating going back to the
1980s. But he said the initial reports were not positive. ! He also said
that the companies engaged in the prospecting wanted to change the
financial terms to the detriment of the country but his government
refused. He explained how he worked hard since 1995 to prospect for oil
in The Gambia, noting that he latter engaged a western company to review
all previous work done. He then announced that after a thorough
evaluation of the oil potentials in 500 square kilometres of deep water
and 3000 square kilometres of shallow water of the country’s offshore
territory the company came up with a report indicating that one-fifth of
the deep sea area contains very large quantities of oil. No estimates
were given of the quantity of oil potential. The company was not named.
However, as reported in one of our earlier publications, in 1999 the
government had an agreement with Geophysical Company Veritas DGC Ltd for
acquisition of geophysical data through seismic tests. President Jammeh
said that oil prospecting will continue in the rest of the country, i.e.
on land. He expressed high hopes of further discovery of oil. President
Jammeh hailed the discovery in great excitement and pronounced it as the
beginning of a new future for The Gambia. He described it as spelling the
end of the dark days of The Gambia, noting that The Gambia will be
transformed from the poorest and smallest nation to the richest nation on
earth. He is worried by the attitude of present Gambian citizens,
stressing that honesty and dedication are prerequisites for the building
of a wealthy country. He expressed fear that oil might lead to more
laziness and complacency. He emphasized that only Gambians can develop
our country, nobody else. He called for attitudinal change. He called for
national unity and called for Gambians to forget differences based on
language, religion, tribe and political ideology. He cautioned Gambians
not to be carried away by the oil discovery, pointing out that nobody
would drink oil. He emphasized that The Gambia is potentially rich in
agriculture and called on Gambians not to abandon agriculture for oil. He
pointed out that "this country’s future lies on what you and I do."
President Jammeh also said that operation no compromise is still alive
and kicking, noting that there would be zero tolerance for laziness,
indiscipline and treachery. He emphasized that the security and defence
of The Gambia are under control. In conclusion, he thanked the
governments of Canada, Taiwan, Nigeria, Turkey and Mauritania for being
true friends of The Gambia, apparently for assisting The Gambia in
prospecting.

Baba Jobe’s Trial

President Jammeh Provided The YDE Money – Says Buba Senghore

As Buba Senghore continues his evidence in chief in the six charges of
economic crimes against Baba Jobe, Baba Kanteh and YDE on this 11th day
of February 2003, it is good to note that this reporter got in barely
less than five minutes after counsel Jobarteh started his examination of
the witness, Buba Senghore. So let us pick up from where our reporter
picked up. The representations were normal with the DPP, Agim leading the
prosecution, while the defence team was led by Edu Gomez.

Mr. Jobarteh’s Examination

Q: Buba Senghore, do you know the names of any of the customs officers
who inspect goods at the Banjul port when you go to clear YDE goods in
the presence of the NIA and police officers?A: I cannot recall their
names but I know one Alhagie Mbye.  Q: You have told the court here
yesterday that YDE from its inception was dormant in 1996 because most of
the members were involved in electioneering. That later in 1997 it was
revived. Can you tell the court if there were any officers appointed?A:
No, up to 2003 when it was decided at a meeting that Baba Jobe takes up
the role of CEO and that Baba’s shares of 90% be transferred to Momodou
Sula Jobe, myself Buba Senghore 5%, Hamidou Baldeh 2.5% and Kuru Kongira
2.5% with Mr. Buba Baldeh as secretary to the board. There were no
officers, the company only had a manager, Alasana Jammeh. Q: At that
meeting was any chairman appointed?A: No.
Q: Was any assistant CEO appointed?A: No, because at the time the office
was run by the MD, Alasana Jammeh. Q: As a board member of the YDE, were
you at any time informed by the GPA that YDE was owing GPA up to the time
when you were told by an officer before the letter you said they sent to
you?A: No, not until we received that letter which stated that YDE’s
total debt with GPA was D8 million. Q: At this stage the witness was
shown Exhibits A, C, D, E and Z and asked if he was familiar with the
contents of Exhibits Z and further told to read the fifth paragraph A:
The content read: "Finally, the chairman and CEO, Baba Jobe recommended
that we go into negotiation with the GPA and customs with a view to
determining the debt situation of YDE with the two institutions and a
payment plan." Q: Was this instruction carried out?A: Yes, following this
Mr. Bubacarr Baldeh and myself were assigned to meet with the heads of
GPA, customs and income tax. This was done. We held several meetings with
the heads of these three institutions and the department of state for
finance. Q: Apart from these meetings, was there any other meeting held
in connection to YDE’s debt issue?A: Yes, we also had a meeting with the
vice president in her office during which the managing director, Mr.
Adama Deen, director general of customs then Ousman Mboge, PS finance and
economic affairs, Karamo Bojang and income tax were in attendance. Q:
What was the conclusion of this meeting?
A: The meeting concluded that YDE should prepare a document outlining its
vision and mission among which are empowering of Gambia youths with
skills empowerment and providing the Gambian people with basic
commodities which goes to fight poverty.  Q: Was this document
prepared?A: Yes.
Q: After this, did the negotiation continue with these institutions?A:
Yes, you see even the day I was arrested, there was a letter in my
handbag from the customs to the CEO. Since we continue to reconcile with
the GPA, customs and income tax, we had worked out a payment plan with
the income tax, which was in progress. We proposed a payment for the GPA
they refused. It was at this moment that the GPA and customs said that
they had advice from top authorities saying that they go ahead with
recovering their dues in full. Q: Did they say from whom or where, when
they said from the top?A: They said from the office of the Secretary
General. Q: Even after this, were you engaged in the negotiation?A: Yes,
as I said even after the arrest and during this trial. Q: Who was the SoS
for Finance that you met on the debt issue of YDE?A: Famara Jatta. Q:
What was your purpose of meeting Famara Jatta?A: You see, as I said at
that time the MD, GPA, Mr. Deen and the director general of customs Mr.
Mboge were telling us that they were under pressure from the SoS Finance
and the Secretary Generalto collect their dues. Q: What was the outcome
of that meeting with Famara Jatta?A: There was consideration from SoS
Jatta but he said he was under pressure from the government and even the
IMF for full recovery. Q: At this stage Counsel Jobarteh produced a bunch
of documents and handed them to the witness and asked, are they
photocopies?A: Yes they are photocopies of invoices that the CEO applied
for from the shipping agencies after the customs sent us their first
indicative value since they were not available at that time. Q: Justice
MA Paul asked: What are the documents?A: They are invoices of YDE
imports. Mr. Jobarteh applied to tender them. Justice Paul intervened to
enquire: "Even when the witness did not tell the court what the documents
are?" Mr. Jobarteh said my lord; I think the witness had said invoices.
Justice Paul I think it was not until the court had asked what the
documents are. Counsel Jobarteh again said, my lord, thank you for that
and went ahead to tender them for identification purposes. There was no
objection. They were admitted and marked Defence I.D 1 – 25. Q: Where are
the originals?A: They may be with the CEO.
Q: Did you submit that document on the vision and mission of YDE that you
were asked to prepare at the meeting you held with the vice president in
her office with the heads of the three institutions and finance?A: Yes.
Q: If you see it, will you be able to identify it?A: Yes.
Q: Shown the document and asked: Is that it?A: Yes, this is the very
document we prepared and submitted. The document was then tendered
without objection. It was marked defence Exhibit AA25.  Q: Mr. Senghore,
finally, prior and after this meeting, was there any time when YDE
refused to honour its obligations due to GPA and customs? A: No, since we
have agreed on a payment plan with the income tax which was honoured, a
proposal was suggested to the GPA and we were in a reconciliation process
with customs and the higher authorities such as secretary general, Alieu
Ngum.

Cross Examination Of Buba Senghore BY DPP Agim

Q: Mr. Senghore, is YDE owing GPA?A: Yes.
Q: What about customs?A: Yes.
Q: You talked about the reconstituting of YDE, when was it?A: This was in
2003. Q: Shown Exhibit AA1 and asked how much shares did you say was
given to Momodou Sula Jobe, Buba Senghore, Hamidou Baldeh and Kuru
Kongira? This was the memorandum of incorporation. A: 90%, 5%, 2,5% and
2.5% respectively.
Q: Further shown Exhibit AA4 and asked if he was a shareholder? That
Exhibit AA4 is another memorandum of incorporation. A: No.
Q: Do you agree that since you did not have any shares in AA4 you cannot
become a shareholder in this subsequent memorandum of incorporation?A:
There is another one different from this one, which is not here. If you
see that you will find out that the executive agreed that shares be
transferred from Saul Ndow and others. There I have shares. Q: When you
are asked to produce that, would you be able to do it?A: Yes. Q: If you
fail to produce it, you agree that will amount to fraud?A: Yes.  Q: How
many shares do you have?A: 5%.
Q: How much money did you pay for your shares?A: I paid no money as I
said here yesterday; it was president Jammeh who paid the money. Q: What
about Momodou Sula Jobe, do you know how much money he paid for his 90%?
A: He did not pay any money.
Q: How about Hamidou and Kuru Kongira?A: They did not pay anything. Q:
When did Mr. Mboge leave as director general?
A: Around August or September.
Q: And you would agree that he was leaving the amount GPA and customs
were asking from YDE were very huge amounts?A: Yes. Q: Why then did you
change the name of the company from YDE Ltd to YDE Company Ltd? A: The
name did not change.
Q: The witness was shown Exhibit AA4 and AA5 and asked if YDE Company Ltd
and YDE Ltd, that is the first registration, are not indicated in Exhibit
AA1?A: Yes. Q: Can you tell the court why the difference in the two
names?A: There is no reason. Q: I put it to you that the reasons are to
create a legal technicality in order to escape from paying tax that is
liable to you?A: No. Q: May I further put it to you that this is why the
first accused Baba Jobe changed his share status to Momodou Sula Jobe? A:
Not at all.
Q: Since that is not the reason, can you tell the court the reason?A: The
reason is like I said there was no capital investment by any of the
shareholders. It was the president who produced the capital. We only did
it to invite more people into the running of YDE. Q: Why then did you
constitute the board in that form that any body that sees it will say it
is a different company?A: No, it is just to facilitate the registration
and running of the affairs of the company. Q: When did you comply?
A: In November 2003
Q: When did you say YDE started actual business of import and export?A: I
said procurement started some time in 1996/97 when actual business
imports started in 2000/2001. Q: Who produced the money of YDE?A: The
president of the Republic, president Yahya Jammeh. Q: Who else was giving
money to YDE?
A: Any way, all I can say is that money was coming through Honourable
Baba Jobe. Q: When did you join the YDE?A: I said I was among those who
formed the organization. Q: What was your position?A: I was a member.
Q: From 1997 – 2000 what were you?A: I was an executive member
coordinating procurement. Q: From 2000 to 2003?A: I was still a board
member and one of those responsible for directing the affairs of YDE. Q:
Who was the managing director of YDE from 2001 – 2003?A: Alasana Jammeh
as I said before, until some time in 2003 when Baba Kanteh took over as
acting managing director. Q: Shown an exhibit in which customs requested
invoices from YDE and asked if it was complied with?A: Yes.  Q: When did
you comply?A: In November 2003.
Q: Do you know where your CEO got the invoices?A: I can’t tell.
Q: Why did you now file your invoices with your SAD form?
A: Because they were not available at the time.
Q: What are your bills of lading?A: Those were always submitted during
the process of clearing.  Q: Why then did you need invoices?A: Because
customs did not use the correct indicative values during their
assessment. Q: What prevented you from sending your invoices on time?A:
Because they come after the arrival of the goods. Q: Do you know how long
it takes from the arrival of the goods to that of invoices?A: I can’t say
exactly. Q: When do they come, before or after?A: I know it is not
before.
Q: So it is certain that you did not know whether invoices come with the
goods or not? A: My lord at the time of clearing of the goods we were
more concerned with the bills of lading. Q: When exactly can you say
invoices come before or after the arrival of the gods?A: After arrival.
Q: Apart from the former director general, did you have any meeting with
any other officer of the customs? A: We had meetings with Mr. Tambajang
the current DG and Mr. Malamin Sanyang. Q: Why did it take you so long
from 2001 to 2003 to submit all your invoices? A: The CEO will be in the
best position to say that.
Q: Can you tell the court why for all this period YDE has not been paying
her dues? A: We had never refused. The organization was not a profit
making body, among other things that was our constraint and negotiations
went well on course. Secondly the CEO too, in his capacity was doing all
he could in terms of payment. Q: Were you having goods from other
sources?
A: Yes.
Q: How were you dealing with those suppliers? Were you buying and
selling? A: They were supplying then we sell, we pay.
Q: Are you aware that it is because of one of such consignment of 18,000
tonnes of rice, which came on Waranilani; that YDE took a loan of 1.56
Million Dollars from Standard Chartered Bank and did not pay, now there
is a legal suit in the high court of the Gambia against the YDE? A: I
don’t know anything about that.
Q: Are you further aware that as a result of the said suit by the
Standard Chartered Bank that an order is made in favour of the bank
against YDE for the sale of 18,000 tonnes of rice in your warehouses? A:
I don’t know and I can’t say anything about it.
At this stage the DPP produced a copy of the said court order and showed
it to the witness and asked him to read the portion which stated that the
amount of D1.56 Million Dollars was taken from the bank under the
guarantee ship of the government of the Gambia with an interest that
brought the total due for the bank to be around 2 Million Dollars. The
DPP applied to tender the court order. Mr. Gomez objected on the ground
that the witness has said that he does not know about such a suit or
order and secondly the witness is not the custodian of the document; that
thirdly the status of the said order is now being revised. The DPP in his
reply submitted that the document is relevant to the findings of the
court in the trial before it. Since it will help the court to have an
idea of how YDE operates. The court over ruled the objection and marked
the said order and suit as exhibits AA26 and AA27. Further again shown a
copy of a letter written by YDE to the director general of customs
informing them that the consignment of 18,000 tonnes of rice that came on
Waranilani should be transferred to AUSTLER a company that supplied the
rice. Who is to pay for the customs duty and asked: Q: Are you aware of
this transfer?
A: No.
The Copy of the letter was then tendered by the DPP without objection and
marked AA28. Q: Where you aware that it was the government of the Gambia
that had acted as a guarantor in order for YDE to be able to contract
that loan of D1.56 Million Dollars? A: I am not aware.
Q: How many bank accounts does YDE operate?
A: I know of only two, one in Serrekunda Trust Bank and the other in
Standard Chartered Bank Banjul. Q: How much is in the Serrekunda account?
A: I do not know.
Q: How about the Banjul one?
A: I do not know.
Q: Do you know what happens to the proceeds of sales of YDE?
A: I do not know and secondly it is good to note that the company is not
a profit making entity. Q: Mr. Buba Senghore as one of the pioneers of
YDE and a top official do you want to tell the court that you cannot say
anything about your sales money? A: We are normally informed that they
are kept in a bank account.
Q: Did you ever see the statement of your account from the bank?
A: No.
Q: Do you have an external accountant?
A: No we only have our accountant in the office who does our accounting
job. Q: Have you ever seen an audited account of YDE?
A: No.

The matter was adjourned to Monday 16th February 2004.

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