On Wednesday, September 17, Agib Bank and Espace Motors Chairman Muhammad Jah made an appearance before the Local Government Commission of Inquiry to clarify the Kanifing Municipal Council’s (KMC) purchase of 19 garbage trucks.
Jah informed the Commission that Espace Motors won a competitive tender and was given the contract to provide the vehicles. He clarified that his team handled all technical conversations, even though he personally attended several meetings.
He further revealed that after the municipality asked for more reductions, Espace Motors gave KMC a 10% discount, or D10 million.
However, Lead Counsel Patrick Gomez noted that the original agreement stated that KMC would only act as a facilitator and that the deal would be between Espace Motors and the Ward Development Committees.
Jah retorted that the contract was signed directly with KMC, not the individual wards, and that he was not part in the technical discussions.
“Well, like I said, counsel, I was not privy to the technical meetings, but what I know is that QuantumNet signed directly with KMC, and probably there was an internal agreement between KMC and different wards. For us, based on the contract we did not sign with individual wards,” he stated.
“It is very clear about the relationship between Espace Motors and the ward development committees,” Counsel Gomez said, emphasizing that the agreement specifically mentioned ward development committees.
Jah responded by explaining that the contract between Espace Motors and the Kanifing Municipal Council (KMC), not its individual wards, was signed directly. “KMC was flooding a tender, and of course, any internal agreement they have with their wards is internal to them,” he said, summarizing what the company had witnessed.
Jah agreed, but emphasized that KMC, not the ward committees, was the sole party to all talks and meetings about the agreement.
Counsel Gomez emphasized that the terms and conditions were legally binding and reminded him that the signed contract served as the basis for the agreement. He also asked Jah if he was aware that KMC was unable to provide the minimum 20% down payment.
This problem came up during pre-contract negotiations, Jah clarified. He explained that KMC claimed it could not afford the down payment, which is why it was not done. Espace Motors consequently consented to forego the deposit for the first batch of trucks while keeping it in place for the second batch.
Although he pointed out that Espace Motors would have repossessed the trucks, albeit at a reduced value, he admitted that the company took on a financial risk in the case of default.
Jah added that he did not remember the topic being brought up at board meetings and was unaware of KMC’s request to Agib Bank for a loan. He insisted that Espace Motors did not have any loan agreements with Agib Bank when questioned about them.
He reiterated at the end that all talks and agreements were made with KMC directly, not through its ward committees.
“What we have is “Musharrakah.” Agib Bank is completely different from conventional banks. It is an Islamic bank. When we have a project, we introduce our clients and the project to Agib Bank. If they agree to go into partnership on that project, we share the profit 60/40,” he stated.
The counsel reminded Jah that although the arrangement was only between KMC and Espace Motors, Agib Bank sought the Kanifing Municipal Council (KMC) to recover the monies.
Jah responded by clarifying that the issue pertained to a partnership account and emphasizing that Agib Bank took action due to possible financial loss. According to him, the agreement was a partnership where both sides were required to support the client’s efforts to recover.
Jah admitted that Agib Bank and KMC did not have a direct contractual arrangement. He did clarify, though, that Agib Bank was regarded as a participant in the relationship since they were KMC’s bankers.
“There is a relationship between QuantumNet and Agib, and QuantumNet can ask Agib to pursue the payment,” Jah continued.
Counsel Gomez emphasized that the terms and conditions of the signed contract are binding on both parties and form the basis of their agreement.
Jah agreed, but emphasized that KMC, not the ward committees, was the sole party to all talks and meetings about the agreement.
Counsel Gomez emphasized that the terms and conditions were legally binding and reminded him that the signed contract served as the basis for the agreement. He also asked Jah if he was aware that KMC was unable to provide the minimum 20% down payment.
This problem came up during pre-contract negotiations, Jah clarified. He explained that KMC claimed it could not afford the down payment, which is why it was not done. Espace Motors consequently consented to forego the deposit for the first batch of trucks while keeping it in place for the second batch.
Although he pointed out that Espace Motors would have repossessed the trucks, albeit at a reduced value, he admitted that the company took on a financial risk in the case of default.
Jah added that he did not remember the topic being brought up at board meetings and was unaware of KMC’s request to Agib Bank for a loan. He insisted that Espace Motors did not have any loan agreements with Agib Bank when questioned about them.
He reiterated at the end that all talks and agreements were made with KMC directly, not through its ward committees.
“What we have is “Musharrakah.” Agib Bank is completely different from conventional banks. It is an Islamic bank. When we have a project, we introduce our clients and the project to Agib Bank. If they agree to go into partnership on that project, we share the profit 60/40, he stated.
The counsel reminded Jah that although the arrangement was only between KMC and Espace Motors, Agib Bank sought the Kanifing Municipal Council (KMC) to recover the monies.
Jah responded by clarifying that the issue pertained to a partnership account and emphasizing that Agib Bank took action due to possible financial loss. According to him, the agreement was a partnership where both sides were required to support the client’s efforts to recover.
Jah admitted that Agib Bank and KMC did not have a direct contractual arrangement. He did clarify, though, that Agib Bank was regarded as a participant in the relationship since they were KMC’s bankers.
“There is a relationship between QuantumNet and Agib, and QuantumNet can ask Agib to pursue the payment,” Jah continued.
