FOROYAA – BURNING ISSUES

ISSUE NUMBER 99/2003


TRIAL OF BABA JOBE AND OTHERS

Baba Jobe Pays D2.5 million to GPA

Part 4

As the trial of Baba Jobe on six charges of criminal offence continues in
the High Court before Justice M.A Paul, the second prosecution witness Aziz
Samba who is the financial director of the GPA informed the court that
during this trial period, Baba Jobe and Co had paid D2.5 million towards the
outstanding debt of YDE. Mr. Samba said that the payment was effected on the
11th of December 2003 through the lawyer of the first accused Baba Jobe.

Mr. Samba further indicated that upon receipt of the amount in cheque, his
office had sought advice from the office of the solicitor general. The DPP
asked them to accept the amount and put it in the name of Baba Jobe.

Evidence of Aziz Samba

Q: Name?
A: Aziz Samba
Q: Address?
A: Fajara M Section.
Q: Occupation?
A: Financial Director, GPA.
Q: Do you know the accused persons in the dock?
A: Yes.
Q: Can you tell the court how you came to know them, starting with the first
accused?
A: I know him as a businessman who brings a lot of goods in the country,
e.g. rice cooking oil, sugar and also a very influential person in
government.
Q: What about the second accused?
A: He is MD of YDE.
Q: In what name does the first accused carry out his transactions?
A: YDE.
Q: How do you deal with him when it comes to transactions?
A: We send invoices to him through our way book which are always signed.
Q: What type of customer is he?
A: A credit customer.
Q: Does he have an account with you?
A: Yes.
Q: How was that account opened?
A: In 2001 there was a day when I was called by the then MD, GPA, Ibrima
Jagana to open an account for Mr. Jobe in the name of YDE.
Q: Before this were there transactions between GPA and Mr. Jobe?
A: No.
Q: How was he made a credit customer, did it take time before he was
considered.?
A: No, it was on the spot.
Q: Was that normal?
A: No.
Q: Why?
A: Because normally what we do is that we must at least have a former
business relationship.
Q: What are the results of his transactions with the GPA today?
A: Total losses.
Q: What is the magnitude of the losses?
A: D27.2 million but on the 11th of December 2003, they paid for the sum of
D2.5 million in cheque through Mai fatty, Counsel for the first accused,
Baba Jobe.
Q: How?
A: We received a letter from Mr. Fatty indicating that he has been advised
by his client Baba Jobe, to forward the payment of D2.5 million towards the
debt of the YDE.
Q: Do you have a copy of the cheque?
A: Yes.
Q: Did you also prepare a receipt for the payment?
A: Yes.
Q: Do you have the copy here.
A: Yes.
The copies of the letter, the cheque and receipt were tendered with no
objection and were admitted and marked as follows: the letter as Exhibit Q,
the cheque as Exhibit R and the receipt as Exhibit S.
Q: So the total losses have changed by D2.5 million?
A: Yes.
Q: He was given Exhibits J and K containing invoices and asked if those were
prepared under his office?
A: Mr. Samba replied in the affirmative.
Q: Who signed them,?
A: They are normally signed by accountants.
Q: Shown Exhibit G, a letter which was written by the management of YDE for
the withdrawal of a given cheque 3308428 and asked what gave rise to it?
A: This happened when the MD Baba Kanteh, Buba Baldeh and Buba Senghore came
to my office to say that the said cheque should not be taken to the bank for
cash and since that was not normal with the GPA I requested that they write
a letter to that effect.
Q: What transaction is the cheque related to?
A: MV Wanalilari.
Q: Does GPA have warehouses?
A: Yes.
Q: How do customers get access to them?
|A: They are for rent.
Q: Who keeps them?
A: When a customer pays for a warehouse he controls it.
Q: Is the GPA in a position to know the level of goods in such rented
warehouses?
A: No.
Q: Do you know anything about the 8022 metric tonnes of rice brought by
Wanalihsali?
A: No.
Q: Do you know of anybody in the GPA who may know?
A: Well, there is a department in charge of warehouses, those people may
know.
Q: Are you aware that YDE is having still up to 8022 tonnes in those
warehouses?
A: No.
Q: Are you in position to know?
A: No.
Q: Did you make any statement to the police?
A: Yes.
Q: Which police?
A: Banjul.
Q: Did the GPA at any time report this matter to the police?
A: No.
Q: Do you know who reported the matter to the police?
A: No, but I know we had written letters to the office of the SG, the
departments of state for works and finance, after a few days we were called
to the police to write a statement.
Q: Yourself and who?
A: The MD and myself.
Q: Why did you classify the D27.2 million as losses?
A: Because by the GPA policy after a year when there is no sign of
willingness from the customer of payment of liabilities, then at the end of
the financial year all such debts are classified as losses but this does not
stop GPA from pursuing them.
Q: Were there any other payments made by Baba Jobe?
A: No, except for two.
Q: Was there any willingness from the first accused?
A: No.
End of evidence-in-chief of the witness.
Cross Examination of Mr. Samba By Ousman Sillah
Q: When did you become director of finance?
A: In December 1996.
Q: Are you an accountant by profession?
A: Yes.
Q: When did you qualify to be an accountant?
A: 1992.
Q: Where did you work since then?
A: Nowhere except GPA.
Q: Where did you get qualified?
A: UK.
Q: When did you resume?
A: 1993.
Q: When you resumed what was your position?
A: Management accountant.
Q: When did you become finance director?
A: December 1996.
Q: Were you aware of any rice being imported into this country by the AFPRC
during the two year transition?
A: No.
Q: You are not aware that this government had been ordering rice into this
country?
A: No.
Q: Are you a member of the GPA board?
A: No.
Q: Have you ever been a member?
A: No.
Q: Have you ever sent any of your correspondence to the board that were sent
to the office of the SG, office of the president, departments of state for
works and finance?
A: No.
Q: Do you know the month this letters were sent?
A: I can’t remember.
Q: Do you know the day or date?
A: No.
Q: Shown Exhibits A, C, D, E and M and asked to look at them and tell the
court who wrote them?
A: The GPA.
Q: They are sent to the Secretary General, Office of the President,
Department of State for Finance, YDE and copied to Baba Jobe.
Q: Do you have any other correspondence(s) prior to the 5th August 2003
addressing the debt issue of YDE?
A: I can’t tell.
Q: Are there any other letter or letters from GPA on the debt of YDE
addressed to the SG, departments of finance and works predating 5/8/03?
A: I do not think so.
Q: Did you tell the court that you know the accused persons in the dock?
A: Yes.
Q: Who are they?
A: Mr. Baba Jobe but failed to say the name of Baba Kanteh but as MD of YDE.
Q: So you do not know all the accused persons?
A: You know, I only met the second accused person once.
Q: Is it true that you rely on the manifest to prepare your invoices?
A: No, we use the actual and the manifest.
Q: Does the GPA see the bill of lading?
A: No.
Q: Have you ever seen any manifest in the name of Baba Jobe?
A: I can’t tell since I do not deal with manifest.
Q: Shown Exhibits J and K, the way book and the log sheet book and asked:
Did you certify the copies?
A: Yes.
Q: And did you certify them purposely for this case?
A: Yes.
Q: What date did you certify them?
A: I do not remember.
Q: Do you have other credit customers?
A: Yes.
Q: Do you know what it means by a limited liability?
A: It determines the shares.
Q: Do you know that it means more than that?
A: I do not.
Q: During your studies as an accountant, did you do company law?
A: Yes.
Q: Does your list of credit customers include the name of Baba Jobe?
A: No.
Q: Did you address all the invoices to YDE?
A: Yes.
Q: Would you agree that it was your former MD who instructed you to open an
account for Baba Jobe.
A: Yes.
Q: Did you tell the police that between 2001-03 that the first accused
brought in shipment of goods and did not pay to the tune of D26,165,000.33?
A: Yes.
Q: Who runs the ferries now?
A: GPA.


ISSUE NUMBER 100/2003

December 29-31 2003

Editorial

A New Gambia is Needed!!

Ousman Sillah’s Murder Attempt

It is still difficult to believe that a Gambian, born and bred in this
country, would hide in the dark for hours to wait to put off the studio of a
radio station like Radio One FM or a press house like that of the
Independent, or try to shoot a lawyer in cold blood.

One would have thought that people would learn from history. How many hands
have been amputated in Sierra Leone to inspire fear? How many girls have
been raped and how many bellies butchered just to impose one’s will on
another.

Today Sierra Leone, Liberia and Cote d’Ivoire are back to square one. Many
of the warlords have died. Many heads of state have disappeared. Nations and
people remain to try to patch up their shattered lives and shattered dreams.
This is the price of a human being’s cruelty to another human being.

When the attack on the Independent Newspaper occurred, we emphasized that it
is not an act of bravery to hide in the dark to destroy the lives and
properties of defenceless citizens. We emphasized that, any person who is
forced to live in fear by violence will die a thousand times before his
death as books of wisdom taught us. A human being who wants to live in
freedom must never be afraid of his or her fellow human being. Those who
engage in violence to be feared will only earn the contempt of the people.
Once they are found they will bring shame to themselves and their children.
What is clear is that those who operate green picks up without number plates
have been identified with previous terrorism.

Now we are told that on Friday 26th December 2003, between the hours of
12.30am to 1.30am, Mr. Ousman Sillah, a Lawyer to Baba Jobe was shot at his
gate upon his return from a marriage ceremony. He was rushed to Ndemban
clinic where operation was performed. He was flown to Dakar the same day for
further operation. By Saturday morning it was conveyed that he went through
two successful operations and is recovering.

Who is responsible for the murder attempt? What could the person or his
patron gain? Is it designed to silence the Lawyer? This would be absurd
since Baba Jobe has more information than his lawyer. Is it to suppress the
case? This would also be silly since it is the state, which has started the
case and can stop it any time? Is it to destabilize the state? This would
also be absurd since the collapse of the APRC would mean a loss to both the
Baba and Jammeh camps? It is difficult for us to understand the motive of
this senseless violence.

We are anxiously waiting for the outcome of the investigations. We are
closely monitoring the attitudes of all propagandists in this case to locate
the source of this brutal and despicable act.

Notwithstanding this we would relocate the minds of the readers to what we
said since "Operation No Compromise" was declared and detention took place
for more than 72 hours. In our view, the government has lost the capacity to
govern without creating economic and political crisis. Consequently, the
Gambian people should salvage the situation by engaging in a nationwide
consultation with a view to convening a mass national conference involving
civil society organisations, political, religious and traditional
representatives and other opinion leaders.

This mass national conference witnessed by tens of thousands of concerned
Gambians can come up with a charter for Freedom and Democratic Governance.
It can further appoint a committee of wisemen and women whose duty would be
to sensitize the public, discuss with the government and others who wish to
be an alternative to ensure that senseless violence, intimidation, impunity
and devisive politics is put to rest and that an environment conducive to
the establishment of a government based on the undiluted choice of the
people is maintained. This is the way forward. The people must take their
destiny into their own hands. They must ensure that all political leaders
respect that desire to live in peace free from fear.

National leaders could set the ball rolling! Gambia belongs to all of us; we
must not allow a few to destroy it at our expense.



The State of the Gambian Economy

Analysis of 2004 Budget

Foroyaa will suspend its independent analysis of the state of the Gambia
Economy to focus on the speech delivered by the Secretary of State for
Finance and Economic Affairs, Mr. Bala Gaye on the 19th December 2003. Many
readers have requested for a comprehensive evaluation of the speech. Foroyaa
has maintained all along that the Gambian economy was heading towards crisis
despite the denial of the representatives of the government including the
President.

It is therefore important to focus on the assessment of the SoS regarding
the state of the economy.

First and foremost, we will give a brief summary to show the true state of
the economy and then look at all aspects in greater detail.

The Fundamentals of the Economy

Each economy has internal and external factors, which determine its state of
health. This has been summed up in the conditionalities established in order
for Gambia to become qualified to be a member of the West African Monetary
Zone.

The SoS Finance indicated in his opening remarks that "the Gambian economy
has witnessed a series of economic shocks both internal and external that
have threatened to destabilize the economy and indeed, threatened to disrupt
the social fabric of our society."

One may now ask: What are these internal and external shocks?

These are factors that are of concern to the members of the West African
Monetary Zone. They can be summed up as follows:

A government should be able to raise enough revenue to meet its expenditure
requirements to provide public services. If a government fails to earn
enough money to meet its requirements it must either receive aid known as
grants or borrow money to meet its shortfalls or deficits. The West African
Monetary Zone has established a standard to limit the shortfall or budget
deficit. It calls for each government to ensure "sustainable fiscal position
by reducing the ratio of budget deficit (excluding grants) to 4% of GDP or
less throughout the period 2004 – 2005. In his budget speech the SoS
indicated that the budget deficit for 2004 is 11.6% of GDP. The deficit for
2003 is estimated to be D540 Million. The deficit is to rise to D895 Million
in 2004.

Suffice it to say that the deficit falls far short of what is required by
the members of the West African Monetary Zone. This is the first point. Let
us move to the second point of financing deficits through borrowing.

Government Borrowing to Finance Deficits

We have mentioned that a government, which runs into budget deficit, must
either receive grants or borrow to meet its revenue shortfalls. The West
African Monetary Zone has established limits on the financing of deficits
through borrowings. A healthy economy should enable a government to reduce
its dependence on loans or debts to finance the budget. The West African
Monetary Zone has established the limit of financing the deficit to be 10%
of the previous year’s tax revenue. For example, in 2003 the tax revenue
amounted to 1.5 Billion daslasis. The deficit to be financed by borrowing by
the Central Bank should not be more than D150 Million. However, government
borrowing to finance the deficit is increasing.

The SoS indicated that the bulk of domestic debt is in treasury bills, which
constitutes 82% of the domestic debt. The 895 Million dalasis deficit for
2004 is expected to be financed through borrowing. In fact interest payment
on domestic debts will be 994 Million in 2004. Gambia is therefore falling
short of the second requirement for qualification as a member of the West
African Monetary Zone.

On Inflation

The third factor, which emphasises the state of an economy is the
accessibility and affordability of goods. The West African Monetary Zone
imposed a conditionality for inflation not to be above single digit in 2003
and to climb down to 5% in 2004.

The SoS indicated that the annual inflation rate as at September 2003 is
15%. The prices of goods have been skyrocketing without any equivalent rise
in income. This has been acknowledged by the SoS in the following words:

"Moreover, the tight foreign exchange situation caused by shortfalls in
domestic output and export earnings, the rising cost of fuel imports as well
as slowing down of donor assistance, has continued to put pressure on the
exchange rate and therefore on the price level." The SoS added that "the
Gambian people were thus squeezed in two ways, purchasing power had fallen,
and prices had risen."

On Foreign Reserves

The fourth factor in determining the strength of the economy is the level of
the foreign reserves of the country. The West African Monetary Zone expects
an average level of foreign reserves that is equivalent to more than 3
months of import cover. IMF expects 5 months of import cover. The SoS
indicated that the gross foreign reserves of the country fell by 42.2% from
D1530 Million to D883 Million, which provides barely three months of import
cover. This drop from 5.2 months of import cover to 3 months of income cover
indicates a worsening of the state of the economy.

Lastly, the West African Monetary Zone calls for all states to maintain real
exchange rate stability. The SoS however indicated that between December
2002 and September 2003 the Dalasi depreciated in normal terms by about 43%,
50% and 58% against the Dollar, Pound Sterling and Euro respectively.

All these facts indicate that the Gambian economy is indeed in a state of
crisis with a debt burden of 20 Billion Dalasis and debt service charges
amounting to 1.5 Billion for 2004. This constitutes 46% of the National
Budget. This is more than the total expenditure on Education, Health,
Agriculture, Finance, Foreign Affairs, Interior, Tourism, Works,
Information, Fisheries combined. There is no doubt that the debt burden is
Unsustainable.

We will continue to make a comprehensive analysis of the budget speech in
the Next Issue.

Baba Jobe’s Trial

Part 5

Q: Mr Samba, let me ask you for instance, when GPA sends a board member or
any official to purchase a ferry and after all what needs to be done are
done, when there is a delay in handing over the ferry who is responsible?
A: I would not know
Q: Mr. Samba was shown the receipt from the payment of D2.5 million towards
the debt of YDE on the 11th December 2003 and asked: Why did you use it in
the name of Baba Jobe instead of YDE?
A: Since this case was before the court when we received the letter with the
cheque, we consulted the office of the Solicitor General for advice, it was
then that the DPP asked us to put it in the name of Baba Jobe.
Q: What did you not understand about the letter of counsel for Baba Jobe?
A: Like I said, the reason why we solicited advice from the office of the
Solicitor General is purely for legal advice.
Q: So it was then the DPP who asked you to put it in the name of Baba Jobe?
A: Yes.
Q: Would you agree that the cheque that Buba Baldeh, Buba Senghore and Baba
Kanteh came to collect was only a blank cheque?
A: Yes
Q: What reasons did they give?
A: They only said that there was no money in the account for the D2.2
Million.
Q: Was the cheque even delivered to the bank again?
A: No
Q: Mr. Samba was given the photocopy of another cheque and asked whether
that too had been retrieved from them?
A: Mr. Samba Said yes, but I do not remember those who collected it from his
office and had not requested for a letter to be written to that effect.
Q: Why?
A: Because it was cash that was paid to the effect.
Q: When was it?
A: I do not remember.
Q: Where you ever met by the First Accused Baba Jobe concerning the debt of
the YDE?
A: Never, we had several meetings with the MD Mr. Kanteh, Buba Baldeh and
other Board Members but not Baba Jobe.
Q: Have you ever been called by your MD, where you met Baba Jobe on this
debt of YDE?
A: No, the only time I met him in the office of the MD was the day when he
made the cash payment of D299,000. The MD called me to collect the amount.
Q: At this point Mr. Sillah gave the Witness the logsheet and asked why it
does not contain dates of receipt and delivery?
A: Mr. Samba agreed that the information sheet is limited and could not
include all those columns but that this is why they used the way book to
deliver.
Q: Further again Counsel Sillah gave the witness the way book and asked: Why
does it not include the delivered date and receipt?
A: Yes, they are not part of the columns?
Q: So would you agree that the way book is useless since it does not contain
necessary columns like date delivery and receipt?
A: Yes
Q: Shown both the log sheet book and the way book and shown changes in dates
of invoices and asked if he agrees that those are alterations?
A: Mr. Samba agreed.
Q: He was further shown dates of invoices in an inconsistent nature and
asked if those are inconsistencies.
A: Mr. Samba answered in the affirmative
Q: Mr. Samba in business terms when one is unable to pay for a debt, does
that amount to unwillingness?
A: Not at all
Q: What is the role of the board?
A: They are responsible for policy implementation at the level of the
authority.
Q: Are you aware that the board of the GPA has asked your lawyer to take
action and he did start by writing a letter?
A: Yes.
Q: Given a copy of the lawyer’s letter and asked to whom it is addressed?
A: YDE.
Q: Why did you not leave your lawyer to go by his business in the letter to
YDE to bring the matter to court after the expiry of the 7 days deadline?
A: I don’t know.
Q: Has Mr. Jobe ever visited your office for negotiation toward the
settlement of debts?
A: No
Q: Finally, Mr. Samba did you tell the court that after you sought advice
from the office of the Solicitor General, afterwards the DPP came up to say
put it in the name of Baba Jobe?
A: Yes.
Cross Examination by Mai Fatty
Q: Would you agree Mr. Samba that the only time you met Baba Kanteh he had
not told you that he was representing Baba Jobe?
A: Yes, he only said he is the MD of YDE.
Q: Are debts transferable to preceding the year?
A: No
Cross Examination by Edu Gomez
Q: Mr. Samba up to the time of this case what was the outstanding debt from
GPA to YDE?
A: D27.2 Million.
Q: And therefore as far as GPA is concerned it is a debt?
A: Yes.
Q: And before this case proposals were made towards the settlement of the
debt?
A: Yes.
During the discussions over what date to take for the next sitting the Trial
Judge Justice M.A. Paul had expressed his concern over how soon he would
like to complete the Criminal Case of Baba Jobe. Justice Paul indicated that
what he had been seeing around the court may have a psychological impact on
his mind. Case adjourned till 12, 13, & 14 January 2004.

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