By Tabora Bojang
Finance Minister Seedy Keita has for the first time publicly provided clarity on the sale and privatisation of Mega Bank by the Central Bank of The Gambia.
The sale of the bank to private investors provoked widespread criticisms with opposition leader Ousainu Darboe alleging lack of transparency in the process.
Responding to questions from parliamentarians regarding the sale, Minister Keita disclosed that Mega Bank was acquired by KM Holdings with 100 percent equity for US$15,250,000.
According to him the bank was disposed off by the Central Bank of The Gambia through the services of DT Associates which acted as a consultant in the process. He said DT initially recommended to the CBG to sell the bank to Vista Group Holding SA, the current shareholder of Vista Bank Gambia but the deal collapsed after Vista failed to pay the D900 million agreed with them in full and also failed to meet the stipulated deadline for payment which was 15 December, 2022.
According to Minister Keita, Vista had already paid to the Central Bank US$5million and US$2.5 million on different occasions but these monies were returned following the collapse of the deal.
He said it however took some time to return the money due to the need to address concerns raised by the Federal Reserve Bank of New York.
According to Minister Keita, the other companies that took part in the first bidding included Sahel Investment and Management International, Accord Associates and AA & Co.
He explained it was after this that the DT Associates was instructed by the CBG to commence another bidding process which was conducted and bids were submitted by several companies out of whom KM Holdings which agreed to pay US$15.2 million stands as the most responsive bidder and they eventually signed a share purchase agreement with the CBG.
“KM Holdings,” he disclosed, “has since effected payment of the full amount as agreed in the share purchase agreement and the transaction has been brought to a close,” the finance minister added.
