By Arret Jatta
Business tycoon Mohammed Jah of Espace Motors and AGIB Bank yesterday testified at the LG Commission on the procurement contract of 19 trucks between Espace Motors and the KMC.
According to Jah, KMC and other councils contacted Espace Motors after the mayoral elections in 2018, expressing interest in solving the waste management problem in their municipalities.
Jah stated that his company had already been exploring ways to address the issue and had discussions with various municipalities.
“I am a shareholder and ultimate owner of both AGIB Bank and Espace Motors. However, I do not manage their day-to-day operations, each institution has its own board of directors and professional management teams who are responsible for commercial decisions, risk assessment and contract execution,” Jah explained.
He revealed that he attended a few meetings with KMC, including a council meeting where the mayor and consultants were present.
“The meetings aimed to negotiate a better discount for the trucks, and I agreed to provide a discount of D10million, almost 10% of the project’s cost,” Jah said.
The Commission’s lead counsel, Patrick Gomez, questioned Jah about his role in the procurement process and his relationship with KMC.
Jah explained that he took part in the process but stressed that technical meetings were attended by his company’s professionals.
Gomez also specifically asked about the clause related to advanced payments and security and Jah explained that the clause meant that if KMC wanted to buy trucks with an advanced payment, Espace Motors would need to secure that payment.
The Commission also examined the contract’s clause stating that the procurement of trucks would be done by the Ward Development Committees (WDCs) and facilitated by KMC.
Jah interpreted this to mean that KMC would facilitate the process, but the contract was between Espace Motors and KMC.
Jah further explained that KMC couldn’t afford to pay the 20% deposit required in the bidding document, so they negotiated to waive it. He stated that his company took the risk, and in case KMC failed to pay, they would retrieve the trucks.
The hearing continues.
