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City of Banjul
Monday, November 29, 2021

Court orders Euro Africa to pay D28 million to Gampetroleum

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By Bruce Asemota

Justice Ebrima Jaiteh of the High Court in Banjul has ordered Euro African Group Limited to pay the sum of D28, 993, 805.82 to Gampetroleum storage facility company limited for being monies owed for using their storage.

Euro African Group Limited was also ordered to pay the sum of one million, three hundred thousand dalasi as legal and administrative cost to Gampetroleum.

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The facts about the case are that Euro African Group Limited used the Gampetroleum storage facility company Limited as a storage facility for fuel products and being a customer of the Gampetroleum. Euro African Group were into the business of importation, distribution and sale of products such as Automatic Gas Oil (AGO), Premium Motor Spirit (PSM), Heavy Fuel Oil (HFO) Liquefied Petroleum Gas (LPG) and Jet Fuel.

The plaintiff averred that its storage facility is used by the defendant to store its said petroleum products.

Justice Jaiteh disclosed that the first prosecution witness testified that the plaintiff and the defendant entered into a storage agreement signed by the representatives of both plaintiff and the defendant on the 15th July 2014.

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Justice Jaiteh further disclosed that Pw1 also testified that upon signing the said agreement, Gampetroleum provided storage service for the Euro African Group and invoices were duly issued to them and that Euro African Group paid off some of the invoices and used the Central Bank bench mark rate instead of the Ministry of Finance exchange rate as per the storage agreement.

The judge further stated that that the said invoices were tendered into evidence and marked as exhibit “P6 (a) to (m)” respectively noting that upon concluding the reconciliation exercise by its Accounts Department it was concluded that the Euro Group owes the Gampetroleum storage facility the sum of D28, 993, 805. 82 bututs from various transactions through the years.

Justice Jaiteh said Gampetroleum tendered as evidence email from PW1 as the senior finance manager of the Plaintiff’s company dated the 27th December, 2018 to the Defendant explaining the discrepancies on the foreign exchange rate to settle the various invoices.

Justice Jaiteh further said that Euro African Group was absent in court for cross examination and the witness was discharged from the witness stand.

Justice Jaiteh revealed that the evidence presented before the court showed that there was an offer, acceptance, consideration; intention to create legal relationship and capacity to contract and as such there is a binding agreement between them.

Justice Jaiteh held that the Plaintiff is entitled to the sum of D28, 993, 805.82

He emphasized that the relationship between the parties is commercial in nature and Euro African Group under the circumstance is obliged to pay all the costs of the fees and expenditure incurred but refused to pay the said amount owed and outstanding. 

Justice Ebrima Jaiteh held that the Gampetroleum has satisfied and proved that they are entitled to the claim sought on the writ of summons.

He accordingly ordered Euro African Group to pay the Plaintiff the sum of D28, 993, 805.82.

Euro African Group was also ordered to pay statutory interest at the rate of 4 percent from date of judgment to date of final liquidation of the judgment sum.

Furthermore, Euro African Group was ordered to pay the Sum of D1, 300, 000.00 awarded to the plaintiff as legal and administrative cost.

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