Witness Testimony
The Committee commenced its hearing with Gam-Petroleum’s (GP) general Manager (GM) by requesting an explanation of his mandate and qualifications for the role. In response, the GM informed the Committee that he is responsible for the company’s day-to-day management and represents Gam-Petroleum at the Board level.
Upon further inquiry regarding his appointment, the GM stated that the Board of Directors appointed him following a recommendation from the Office of the President. He noted that he had initially served in an Acting capacity following the dismissal of his predecessor, which was linked to missing petroleum products deposited at the depot. He informed the Committee that the Cabinet had established a Taskforce to investigate the matter and report back. When asked about the fate of the investigation, the GM confirmed that he had been furnished with a copy of this report, following which the Committee formally requested to be equipped with a copy.
The Committee asked whether the GM knew the 36,953.614 metric tons of petroleum products marketed in The Gambia. The GM responded in the affirmative.
The Committee asked about the shareholding structure in Gam-Petroleum. In his response, the GM stated that the Gam-Petroleum is not a Public Enterprise, but is governed by a Memorandum and Articles of Association, and he indicated that the shareholders include the Gambia Ports Authority (GPA), the Social Security and Housing finance Corporation (SSHFC), the Ministry of Finance and Economic Affairs (MoFEA), the Gambia National Petroleum Corporation (GNPC), and Star Oil Group, which holds 25% of the shares. Consequently, the Committee requested the following:
a) A detailed breakdown of the remaining 75% shareholding,
b) A copy of the company’s Memorandum and Articles of Association.
c) Documents detailing how Star Oil Group acquired its 25% stake.
The Committee asked about the Gam-Petroleum operations and the organogram. In his response, the GM stated that Gam-Petroleum operates a single storage facility in Mandinary Village. On the organisational structure, he explained that the company is governed by a Board of Directors, with a General Manager, supported by three Senior Managers. He further indicated that GP was not organised or systematic before the current management, particularly regarding operations, filing systems, and general record keeping. At this juncture, the GM submitted his written statement, which the Committee adopted.
The Committee enquired about the ullage application guidelines and specifically the
procedures governing oil storage at the depot. The GM explained that applications are processed through recommendations from the Senior Manager, Depot Manager, and Operational Manager, and the General Manager grants final approval.
When the Committee asked GM whether he was familiar with the three oil companies referenced in the FIU report, the GM responded in the affirmative. He stated that he was aware of Apogee FZC and Ultimate Biege Logistics (UBL), and that their representatives had visited his office together. He further described Apogee FZC as an international oil trader based in Dubai. The Committee requested a copy of the Apogee FZC and Gam-Petroleum storage agreement.
The Committee then questioned the GM about the discrepancy between the names Apogee FZC and Apogee FZE, both appearing on documents submitted to the Committee. The GM stated that the company they had dealings with was Apogee FZC and was not focused on the variation in nomenclature. The Committee, therefore, requested the registration certificate of Apogee FZC as held by Gam-Petroleum.
The Committee asked about the due diligence process surrounding the application and approval of Ullage space. The GM stated that as a storage facility, Gam-Petroleum does not conduct in-depth investigations into companies or individuals. Instead, it relies on the documentation relating to the product intended for storage. He noted that GP lacks the institutional resources to carry out rigorous due diligence processes on international traders.
The Committee further enquired about the general requirements for petroleum traders seeking large space at the deposit. The GM explained that international traders are not required to be registered in The Gambia to engage with Gam-Petroleum. He stated that the depot operates under the bonded warehouse framework and is considered a border zone. As such, the company focuses primarily on the quality and standards of the petroleum products, rather than the corporate registration status of the traders. He added that oil traders are independent entities and can sell their products to any party.
When questioned on how GP verifies the credibility and the genuineness of the petroleum products before accepting the ullage application, and how it handles contract breaches. The GM cited the case of Apogee FZC and stated that samples were taken and verified at labs to confirm if they met required standards before they were accepted. He further described that the fuel received from Apogee FZC was among the best quality they had received.
In response to a question regarding the facilitators of Apogee FZC, the GM stated that the company was represented by its Commercial Director, Mr Aurimas Steiblys, who visited the 29th GP along with a representative of Ultimate Biege Logistics, known as Nana Kofi Amoako.
The GM indicated that the Apogee FZC and Creed Energy representatives have entered into and agreed to confirm their partnership. He added that the initial transaction failed due to insufficient funds and that the name of the previous company involved was not requested. Between March and 21st May 2023, there was a fuel shortage in the country, and given the situation on the ground, Gam Petroleum proceeded with verification procedures, ultimately accepting the product. The vessel carrying the fuel arrived on 20th April 2023.
The Committed inquired why specific ullage applications were approved, while two others were not, even though the GM had described the fuel situation as a crisis. The GM explained that the decision to approve or reject applications was based not on the fuel situation in the country, but on procedural compliance. He added that the applications were denied due to insufficient storage space.
The Committee asked whether Apogee FZC needs to be registered in the country before conducting business there. The GM reiterated that Apogee FZC did not need to be registered in The Gambia, as it operated in a free zone.
The Committee referred to the Bill of Lading, which listed Ultimate Biege Logistics Ghana c/o Creed Energy Limited, Gambia as the consignee. The Committee noted that Ultimate Biege Logistics was not registered in The Gambia at the time of the transaction, and therefore was not legally recognised to represent Apogee FZC. In response, the GM reiterated that, from the perspective of Gam-Petroleum, promoters of international traders are not required to be registered locally to act on behalf of their principals.
Findings
The investigation revealed that Gam-petroleum did not perform a due diligence assessment on Apogee FZC before onboarding them. The General Manager stated that conducting due diligence on new clients is not part of their operation, as this is unimportant to them.
The investigation and testimonies from other witnesses stated that at the time Apogee FZC was in the country, other OMCs were not allowed to use the ullage facility at the depot and were all compelled to buy their petroleum products from Apogee FZC.
Testimonies also indicated that Mr Yoro Jallow, GM of Gam-petroleum, was serving as an agent for Apogee FZC. This was cemented during the testimonies of the MD of GNPC and ORYX, who stated that Mr. Yoro Jallow had introduced Apogee FZC to them.
The Committee also observed that during the period Apogee entered the market, they were giving exclusive use of the ullage facility.
The monopolisation in granting of the ullage to international traders (Apogee FZC) has greatly put our local OMCs at a disadvantage.
The Committee also observed that the alleged shortage of petroleum products occurred on the 31st of October 2021, contrary to his submission that the shortage occurred sometime in 2023.
The Committee does not find Mr. Yoro Jallow to be truthful in his testimony to the Committee, and consequently does not find his testimony to be credible.
