By: Fatou Krubally
In a riveting testimony before the Local Government Commission of Inquiry on December 18, 2024, Jim Gaye, the Sales and Marketing Manager at Espace Motors, revealed shocking details of the procurement deal for the KanifingMunicipal Council (KMC)’s “Mbalit” trucks, showcasing a significant profit margin per truck.
Key revelations emerged as Gaye disclosed the intricacies of the deal, highlighting that each truck, priced at $90,000, generated a profit of $20,000 for Espace Motors after requesting $121,000 from the KMC.
The witness underscored the financial discrepancy, revealing that Espace Motors added $589,000 for the 19 trucks above the original cost from the company in China. The witness provided crucial payment receipts as evidence of the transaction.
The witness elucidated the financial structure between Espace Motors and AGIB, where profits were distributed on a 60%-40% basis, emphasizing shared profits for project implementations. However, Gaye acknowledged his lack of knowledge of the specific agreement between Espace Motors and AGIB, prompting Lead Counsel Patrick Gomez to request the joint-venture agreement be presented to the Commission.
Gaye clarified Espace Motors’ involvement in the bidding process for the contract, securing a successful bid among competitor companies. The witness detailed Espace’s collaboration with AGIB to secure funds for the purchase of the trucks, highlighting the financial nuances and profit-sharing arrangements within the partnership.
Lead Counsel Gomez probed the witness on the repayment structure, prompting Gaye to acknowledge the KMC’s indirect involvement in the loan facilitation process. The witness revealed Espace Motors’ rationale for the project’s viability, emphasizing verbal assurances from the KMC as the basis for financial commitments.
Concerns arose regarding the financial sustainability of the project, with revelations that the trucks’ revenue generation fell short of repayment obligations, leading to renegotiations with AGIB and the KMC. Gaye affirmed the agreement for a fixed deposit account for potential financial fallbacks.
The witness’s testimony offered a candid glimpse into the financial intricacies of the KMC truck procurement deal, revealing substantial profits for Espace Motors amid doubts surrounding the project’s viability. The inquiry shed light on the complex relationships and financial risks inherent in large-scale transactions, prompting further scrutiny of the financial agreements and feasibility of the project.
