Finance Minister Seedy Keita faced tough questioning from National Assembly Members (NAMs) yesterday regarding a $50 million loan facility, equivalent to D3.4 billion, granted exclusively to Jah Oil, a private company. The loan was part of an agreement approved last June by the National Assembly between the government and the Arab Bank for Economic Development in Africa (BADEA) to support Gambian businesses importing food and other essential commodities, aiming to alleviate market price pressures.
Minister Keita confirmed that Jah Oil is the sole beneficiary of the $50 million facility from BADEA. He explained that prior to the loan disbursement, the Ministry of Trade engaged with Gambian-owned companies to discuss the financing terms, including eligibility requirements and conditions. Interested companies were required to pay a nonrefundable upfront administrative fee of D48 million and provide a guarantee equivalent to the loan amount.
Despite claims by some NAMs that other companies were interested but denied access, Minister Keita stated that only Jah Oil complied with the requirements, paying the administrative charges and guarantee, which unlocked the loan facility for them.
Challenges from NAMs included questions about the screening process and why the loan was not divided among multiple companies. Minister Keita clarified that the screening was led by the Ministry of Trade and that the loan was non-divisible, posing a risk to the government if divided.
Responding to queries about empowering the National Food Security Processing and Marketing Corporation, Minister Keita mentioned efforts to secure similar, smaller loan facilities with international partners to involve more businesses.
Minister Keita emphasized that the government acted as a facilitator and any private sector beneficiary, such as Jah Oil, would be solely responsible. He also assured that the government ensured all private companies had the necessary collateral and securities in place to avoid government liability in case of default.
The opposition NAMs continued to press for more transparency, asking for all bidding documents and the list of private companies that applied for the loan. However, Minister Keita reiterated that questions regarding eligibility should be directed to the Ministry of Trade, which led the screening process.
The Finance Minister’s responses did not fully satisfy the NAMs, who raised concerns about the lack of transparency and the perceived favoritism towards Jah Oil in the loan allocation process. The issue is expected to be further debated in the National Assembly as members seek more clarity on the matter.
