FOROYAA – BURNING ISSUES
Issue Number 98/2003, 22-24 December, 2003
Editorial
President Jammeh And The SoS For Finance
During the swearing in of the present SoS for Finance, Musa Bala Gaye, and
President Jammeh indicated that economic vampires were out to rely on
speculation of the dalasi and the rise in prices. He assured SoS Gaye that
he knew there were people who were hoarding foreign currencies and would
therefore clean up the whole mess so that the new SoS would have a soft
landing.
When the SoS appeared before the National Assembly on 19th December 2003, he
made it categorically clear: "The Gambian economy has witnessed a series of
economic shocks – both internal and external – that have threatened to
destabilize the economy and indeed, threaten to disrupt the social fabric of
our society." This is acknowledging what we wrote last year that the country
was heading towards economic crisis because of its huge debt burden, the
growing budget deficit and the low level of development of the productive
base. President Jammeh referred to us as the so-called economists.
It is clear that he was the one who had little understanding of the
fundamentals of the Gambian economy to the point of imagining that he would
do away with the depreciation of the dalasi and price increases by threat.
Instead of a soft landing, the SoS has parachuted right into an economic
marsh or quicksand. He has to utilize all his ingenuity to hold his ground.
At least he has started talking in a plain language.
He has explained very clearly the major cause of the depreciation of the
dalasi as the "shortfall in domestic output and export earnings, the rising
cost of fuel imports, as well as a stirring down of donor assistance." It
was made very clear to them that donor assistance will dwindle unless the
Auditor General’s reports were submitted with consistency so that there is
transparency in the handling of government finances. No state economy can
operate like a household food store with one person holding the key while
claiming that everything in the store was coming from "Allah’s World Bank."
It is now clear that foreign money has not been dropping like manna from the
sky. The projects have not been coming from heavens. The regime has been
relying on loans. The debt burden is increasing to the tune of D20.03
billion.
The trade deficit for 2003 is 3.9 billion. The annual rate of inflation is
15%
Our foreign reserves have dropped by 42.2 percent from 1530.04 million
dalasis to 883.6 million which is barely sufficient to finance three months
of imports. President Jammeh should now drop the mask. Economics is a
science. It should not be mystified. The facts should be faced squarely. He
should acknowledge the demonstrated incapacity of his government to put
things right and tell the Gambian people that he is only trying his best and
that his best is not good enough, they should find another solution. This is
the only honest approach to the present crisis.
The Budget Speech
20 Billion Dalasis Debt Burden
Purchasing Power Falls, Prices Rise!!!
The Secretary of State for Finance and Economic Affairs delivered his 2003
budget speech on 19th December 2003.
He indicated that internal and external shocks have threatened to
destabilize the economy. He showed how output in agriculture was affected by
adverse weather conditions; that foreign exchange earnings from groundnuts
which was estimated to be 14 million dollars fell below 7 million dollars.
He explained that shortfalls in output and export earnings, plus the rising
cost of imports have made the Gambian people to be squeezed in two ways:
purchasing power has fallen and prices have risen.
The country has the vision of being an export-oriented country according to
vision 2020. The Secretary of State indicated that imports for the year 2003
are projected to be 4 billion dalasis whilst exports for the same period are
estimated to stand at 93.7 million dalasis. This gives a trade deficit of
3.9 billion dalasis.
It is very clear from this that the foreign exchange earning capacity of the
country from exports has been reduced.
This has contributed remarkably to the depreciation of the exchange rate of
the dalasi. Between December 2002 and September 2003 the dalasi depreciated
by 43% against the US dollar, 50% against the pound sterling and 58% against
the euro.
The government has also experienced shortage of revenue and budget deficits.
Grants have fallen, compelling government to rely on domestic borrowing.
External and domestic borrowing stands at 666.6 million dollars or 20.03
billion dalasis.
The external debt is about 576 million dollars or 17.85 billion dalasis
while domestic debt stands at 2.18 billion dalasis. The Secretary of State
has confirmed that treasury bills constitute 82% of the domestic debt.
The total cost of servicing domestic debts was 266.9 million dalasis in 2002
and is expected to rise to 436.2 million dalasis in 2003 because of the
increase in the volume of outstanding treasury bills and the skyrocketing
interest rates, which go along with it.
On the Expenditure
The total expenditure for 2004 is estimated at 3.8 billion dalasis. The
recurrent expenditure to meet the day to day services of government is
estimated to be 2699.8 million dalasis while the development expenditure is
expected to be 1638.19 dalasis.
The most startling revelation is that interest payments on both external and
domestic debts would amount to 994 million dalasis. This is twice the total
sum paid to all civil servants in the public service.
Suffice it to say that 1.17 billion or 71.8% of the development budget is
coming from loans. Where will the money come from to meet the recurrent
budget? According to the Secretary of State, government will improve and
enforce existing taxes so that all monies due to government will be paid.
User fees and charges will be adjusted such as 30% increase in postal
services; increase in licence fees and road tax; increase in land rent and
survey fees; increase in licences for firearms, driving, general dealers,
ordinary number plates and so on. A whole list is anticipated through a
gazette notification.
The pump price of petroleum for PMS has been increased by D3. It is
therefore very clear that what the user fees entail has absorbed any gain
that would have been made by the 10% increase in salaries as of January 2004
which was mentioned by the Secretary of State. The people will continue to
experience depreciation of income because of user fees, rise in
transportation cost and prices.
Baba Jobe’s Trial
160,440 Bags of YDE Rice in GPA Stores
Part 3
This is the third part of the report on the proceedings on the trial of Baba
Jobe and others. The first prosecution witness Adama Deen is still in the
witness box. In Issue No. 96 / 2003 we started with the cross examination of
Adama Deen. In this Issue we publish the remaining part of the cross
examination.
Mr Deen told the court that YDE has 8022 tonnes of rice in GPA stores. This
is estimated to be 160,440 bags worth not less than 165 million dalasis.
Continuation of Adama Deen’s Cross Examination
Ousman Sillah first started his cross examination by reminding the GPA MD
that he is on oath and should speak the truth.
A: Yes
Q: You know the personalities in this trial?
A: Yes.
Q: Who are they?
A: The first accused is Baba Jobe, the second is Baba Kanteh and the third
is Youth Development Enterprise (YDE).
Q: You had earlier told the court about invoices the GPA sent to YDE in
Exhibit J.
A: Yes.
Shown Exhibits J and K and asked how many invoices there are in Exhibit J?
A: Mr. Deen, in his first reply, said there are 15 invoices for vessels, 1
for rentage of GPA stores. Counsel Sillah repeated the question. The judge
intervened and told the witness to answer the question on how many invoices
are there.
A: Mr. Deen counted and said 17 invoices.
Q: How many are in Exhibit K?
A: Two
Q: What period are covered in Exhibit J?
A: 2001 to part of 2003.
Q: What about Exhibit K?
A: Only 2003.
Q: The first invoice reads what?
A: It is on MV Squa dated 29/9/01, invoice number 10337 and addressed to
YDE.
Q: What about the second invoice?
A: It is of MV Squa, numbered 10338, dated 29/9/01 and addressed to YDE.
Q: What about the third one?
A: It is of MV Squa, dated 29/9/01, numbered 10339 and addressed to YDE.
Q: Will you agree that all the invoices in Exhibits J and K are addressed to
YDE?
A: Mr. Deen replied in the positive.
Q: Is there any of them addressed to the first accused Baba Jobe?
A: No.
Q: Not to Baba Kanteh?
A: Yes.
Q: Do you have an account of YDE?
A: Yes.
Q: And it is a credit account?
A: Yes.
Q: Does Baba Jobe and Baba Kanteh have a credit account with the GPA?
A: No.
Q: Does the GPA have any other credit customers other than YDE?
A: Mr. Deen answered in the affirmative.
Q: I guess they are many?
A: Yes.
Q: And they are still owing GPA?
A: Yes.
Q: Is it correct that your relation with them are the same with YDE?
A: Yes.
Q: I guess they should all have equal treatment from the GPA?
A: Yes.
Q: And the GPA reserves the right to determine how you deal with them by the
GPA Act?
A: Yes.
Q: What about the services that you charge in foreign currencies?
A: Shipment dues
Q: Do you have a canteen service in the GPA?
A: Yes, on contract.
Q: What type of services are offered there, are they on credit?
A: They are determined by the contraction.
Q: Does the GPA take rice from YDE on credit?
A: Yes, once or twice in my time.
Q: Do you remember the quantities?
A: No.
Q: Are they all paid for?
A: Yes.
Q: When you pay, are you normally given receipts?
A: Yes.
Q: Do you have any of those receipts with you here?
A: No.
Q: Do you have a staff by the name of Saihou Bojang?
A: No.
Q: What about Dodou Jobe?
A: There are over 400 staffs, I cannot remember all their names.
Q: Shown a receipt of payment from YDE to the GPA and asked whether that is
one of such receipts that GPA is issued by the YDE when it pays for rice
credited to GPA?
A: Yes.
Q: Did the GPA pay for the particular receipt?
A: Yes.
Counsel Sillah who is leading the defence applied to tender the receipt
through the witness. The DPP raised an objection stating that first of all
no proper foundation had been laid, secondly it is a photocopy. The DPP then
cited section 101 of the Evidence Act. He asked further where the photocopy
is from, had it been compared? He submitted that we have witnessed
photocopies different from originals. The DPP further cited section 199 of
the Evidence Act. He urged the court to dismiss the application.
In his reply, Mr. Sillah submitted that the relevant section 101 cited by
the DPP has even helped the defence in their application, Mr. Sillah further
argued that to be labour on the origin of the photocopy is a waste of time.
He added that since the defence is not in possession of the original, it is
for the prosecution to prove if there is any forgery of the photocopy.
In his ruling, Justice Paul indicated that the court has found the evidence
of the witness pertaining to the document relevant and therefore overruled
the objection of the DPP.
On the marking of the document as an exhibit the DPP urged the court to mark
it defence exhibit differently from those of the prosecution. Justice Paul
accepted and remarked the first two exhibits of the first day of cross
examination as Defence Exhibits L and M and the receipt in question as
Defence Exhibit N. Mr. Sillah then showed Mr. Adama Deen Defence Exhibit M
and asked him to read the first paragraph and it reads, "a certain cheque
was sent to the standard Chartered Banks but was dishonoured."
Q: What is your understanding of dishonoured, does it mean that there is no
money in the account or it is not sufficient?
A: Mr. Deen replied that it could mean both.
Q: How do you know that cheques sent to bank by GPA are dishonoured?
A: They are sent to the financial manager who informs me.
Q: Have you ever seen a cheque marked RD?
A: Yes.
Q: What does RD mean?
A: Returned on demand.
Q: Have you ever seen a cheque marked stopped?
A: No idea.
Q: Shown Exhibit J and asked to look at it and further asked: Do you see
anything like "please represent it?"
A: Yes.
Q: Do you know what that means?
A: No idea.
Q: In simple English what does it mean "represent?"
A: To send it back.
Q: Did you do that with this particular receipt?
A: No.
Q: Does the GPA have ware houses for rentage to businesses?
A: Yes.
Q: Is there any of them currently used by YDE to store its rice?
A: Yes.
Q: Do you know the amount of tonnes of rice in those warehouses.
A: No.
Q: Shown prosecution exhibit G and asked the same question?
GPA MD said 8022metric tonnes of rice stored in GPA warehouses.
Q: Mr. Deen, are these rice bags in 50 kgs?
A: Yes.
Q: I guess a tonne would be 20 bags, so 8022 tonnes times 50 would be
160,440 bags of rice?
A: Yes.
Q: Mr. Deen, would you agree that even if we take a bag to cost D350 even
though all YDE rice are only 25% broken that would be 160,440x350 equal to
165,154,000.00?
A: Mr. Deen confirmed on a calculator and said yes.
Q: Do you know that by the law that established the GPA when a business is
owing GPA they have the power of holding and selling the goods of such
companies to recover any amount owed to GPA?
A: That may be right.
Q: You mean to say as MD you do not know that some of the port dues you
charge to YDE in invoice are only payable by the master and ship owners?
A: We have never done so. All that is charged to YDE are payable by them.
Q: What types of charges are payable to GPA?
A: They are two. The first is ship cost charges payable by only ship owners
that are paid in foreign cash. The second one is cargo charges that are
charged to importers.
Q: Does ship dues not only mean ship cost charges?
A: No, it could mean both.
Q: Do you know Baba Kanteh?
A: Yes.
Q: How long?
A: 20 years ago.
Q: Have you ever met him in your office in his capacity as MD of YDE?
A: No.
Q: Do you know when he became MD of YDE?
A: No but I know it was in 2003.
Q: Was it in the first or second half of 2003?
A: In the second half.
Q: Mr. Deen, do you have a board of directors?
A: Yes.
Q: Mr. Deen, you have said in your evidence-in-chief that GPA sent letters
on this matter to the secretary general’s office of the president, SoS for
Communication and Finance, did you send any to your board?
A: No.
Q: Is it that you did not want them to know about it?
A: No.
Q: Do you know who was MD of YDE before Kanteh?
A: Mr. Jammeh.
Q: Did you ever meet him as MD of YDE?
A: Yes.
Q: Did you ever meet the first accused in your office?
A: Except for two transactions out of 22.
Q: Do you know the dates?
A: No.
Q: Do you record appointments in your diary?
A: Not all appointments.
Q: Mr. Deen, I put it to you that you only met Mr. Jobe three times?
A: I met him for all the transactions except twice.
Q: In fact the first time he met you was after you were appointed MD, GPA?
A: No.
Q: But did he congratulate you on your appointment?
A: Yes.
Q: Where?
A: I can’t remember if it was on telephone but not anywhere outside my
office.
Q: Did you ever meet Mr. Jobe outside your office?
A: Yes, it was at GAWA building in Kanifing.
Q: When was this?
A: 12th April 2003.
Q: The day?
A: Saturday.
Q: For what?
A: For him to pay his dues.
Q: Who requested for the meeting?
A: I requested.
Q: Is it not correct that you wanted YDE to accept you as their clearing
agent?
A: Not true.
Q: Does Mr. Jobe have an account with GPA?
A: Yes.
Q: Is it Mr. Jobe who is having an account with the GPA or YDE?
A: The account we have is for YDE but Mr. Jobe is always appearing for YDE.
Q: Have you ever met any other officials of YDE?
A: Yes.
Q: Who are they?
A: Mr. Buba Baldeh, Buba Senghore and others in the presence of members of
our management.
Q: Did you meet them for a second time?
A: Yes.
Q: Were there any members of the management team?
A: Yes, I think.
Q: Who arranged for the meeting?
A: They called for it.
Q: You were asked to bring the way book?
A: Yes.
Q: Did you have it here?
A: Yes.
Q: Are there any signatures for YDE?
A: Yes.
Q: When was the first signature from YDE?
A: 1st August 2001.
Q: What about the last one?
A: Some time in October 2003.
The defence Counsel Ousman Sillah then applied to tender the way book and
the log-sheet. They were not objected to and were marked Defence Exhibits O
and P.
Q: Is there any where in your way book or log-sheet where Baba Jobe is
indicated?
A: No.
Q: Are you agenting with any of the signatures?
A: No.
Q: Mr. Deen, did you in your statement to the police, say that Baba Jobe the
first accused gave you 33 cheques that were dishonoured?
A: Not at all.
Cross Examination By Mai Fatty
Q: Mr. Deen did you not in your evidence-in-chief, tell the court that Baba
Jobe had some time this year introduced Baba Kanteh to you as MD YDE?
A: That is not correct.
As the counsel tried to raise a follow up question, the trial judge told the
counsel that he should leave that for the addresses. Counsel accepted.
Q: Mr. Deen, can you tell the court where Baba Kanteh was introduced to you?
A: Mr. Kanteh was never introduced to me as MD of YDE.
Edu Gomez’s Cross Examination
Q: Mr. Deen, which of the accused are indebted to the GPA?
A: The first accused in the name of YDE.
Q: Would it be right to say that all shipments of goods that were brought to
GPA came in the name of YDE?
A: Very well.
Q: And as such all your invoices were directed to YDE?
A: Yes.
At this stage Adama Deen was discharged by the court and the matter was
adjourned till Monday, 22nd December 2003, for the prosecution to call their
next witness, the customs
Waa Juwara Granted Bail
At Friday’s proceedings of the trial of the NDAM’s Secretary General, Lamin
Waa Juwara, the presiding judge, Justice Paul, granted him bail. At a
particular stage during this trial, the counsel for Waa Juwara, Mr. Borry
Touray, being dissatisfied with the manner in which the trial judge handled
the case, wrote a petition to the Chief Justice requesting for a transfer of
the case.
Meanwhile he applied to the court for a stay of proceedings until the Chief
Justice takes a decision on his request. The court however refused his
application and ruled that the trial must proceed. Mr. Touray then
temporarily withdrew his representation of Waa Juwara on the ground that he
could not continue to represent him under the condition he was subjected to
by the court.
Waa Juwara was given time to get another lawyer. When he returned to court
he told the court that Mr. Touray is their party lawyer and he could not get
another lawyer without his consent. The trial judge then adjourned the case
and remanded him in custody.
When he appeared in court again, his lawyer, Mr. Touray, was there but due
to misunderstanding he did not apply for bail and Waa Juwara was returned to
Mile II. Attempts by Mr. Touray to resolve the matter in chambers proved
futile.
By then Mr. Touray had filed an application asking for a transfer of the
case. This application was to be heard on Friday.
However, after the usual indication of representation, Mr. Touray asked the
court to permit him to proceed with his application for bail since the DPP
Akimoyae Agim had informed him that he was served with the motion for the
transfer only on that day.
The DPP opposed the application on the ground that the court cannot
entertain any matter pertaining to the case unless the issue of transfer is
resolved.
Mr. Touray, on the other hand, submitted that the issue of bail is
fundamental because the liberty of the accused is at stake. He further
submitted that when the liberty of the accused is at stake, the first thing
to do is to restore it, then any other thing can follow.
In his reply, the DPP submitted that bail is not a right under the
constitution. He indicated that the only grounds for right to bail are (1)
the release of a suspect or forwarding him/her before a court within 72
hours, (2) lack of a trial within reasonable time. He relied on section 19,
subsections (3) and (5) of the constitution.
The judge overruled the objection and allowed Mr. Touray to proceed with his
application for bail. When he did, the DPP did not oppose it. The judge then
restored the bail with the previous conditions. The case was adjourned till
Friday for the hearing of the motion.
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