By: Kebba AF Touray
The Financial Intelligence Unit (FIU), has recommended in its report, a tax audit on Creed Energy / Apogee FZC and Ultimate Beige Logistic FZC, to ensure that both companies pay their appropriate tax returns to the Gambia Government.
The FIU made this recommendation in relation to the trading of petroleum products in the Gambia by the said companies.
According to the FIU report, neither Creed Energy nor Ultimate Beige Logistics are licensed to trade in such products within the Gambia. The report indicated that the FIU received intelligence on the operations of a company called Apogee FZC, a non-registered company in the Gambia; that Apogee FZC relies on Creed Energy and Ultimate Beige Logistic companies to trade in petroleum products within the Gambia and internationally, though both companies are not licensed to trade such products within the Gambia.
“The report also indicates that Creed Energy maintains an account with Access Bank, while Ultimate Beige Logistics maintains an account with Ecobank (G) Limited. Both companies jointly opened accounts with Apogee FZC to receive proceeds from the sales of petroleum products and further remit the funds to Apogee FZC in Dubai, upon the latter’s instructions,” the FIU Report indicated.
The report further added that the FIU also received intelligence reports that certain individual(s) are receiving kickbacks (bribes) of D600,000.00 monthly.
In light of these circumstances, the FIU requested from Access Bank and Ecobank, the account opening packages and statements of accounts of the said companies, to analyze the matter.
On the premises of the registration of the companies and opening of bank accounts, the FIU report said Creed Energy was registered on May 7, 2021, to carry out business on energy consultancy, petroleum trading and retailing, alternative energy solutions, and petroleum financing and other related activities, both within and outside The Gambia.
“On November 20, 2021, the Board of Directors of Creed Energy Limited held an executive meeting to approve the opening of a corporate current account in US Dollars, Euro, and GMD with Access Bank (G) Limited in the name of the company,” the FIU report said, adding that on April 12, 2023, Creed Energy Limited wrote to the branch manager of Access Bank (G) at Kairaba Avenue, requesting for a bank comfort letter to complete a diesel sales transaction with their supplier.
“In the letter, they stated that they have been with the bank since 2021 and therefore, would like to engage the bank to ensure the successful running of this transaction. The expected cargo was 36,935.614 metric tons of petroleum products and its estimated time of arrival was 21st April 2023,” the FIU report said.
The report further added that the pricing as given by the supplier is based on the platts system using the European market scan for African products (FOBSTS West Africa) with a premium of US$25 per ton. The projected inflow to the bank after sales was estimated at an excess of US$30 Million, with a payback period after sales of seven days.
Among other concerns, the FIU indicated in the report that Apogee FZC, a company based in Dubai in the UAE, is highly involved in the sale of petroleum products to customers in the Gambia and beyond, by issuing invoices and receiving payments through joint accounts with Creed Energy and Ultimate Beige Logistic, without being registered and licensed in the Gambia to trade in such a business.
The report indicated the importance of investigating the enablers behind Apogee FZC, saying Apogee FZC which is registered in Dubai, in the UAE, is the ultimate owner of the petroleum products imported into the Gambia.
“Thus, Creed Energy Limited and Ultimate Beige Logistic were registered to likely serve as front companies to facilitate the sales of these products in the Gambia and beyond,” FIU reported.
The FIU report then recommended that the Gambia Police Force conduct investigations into the matter to establish the possible offences therein and take the necessary steps thereafter. The report further recommended that the GRA conduct a tax audit on both companies and ensure that the appropriate tax is paid to the Government of the Gambia.
On the banks, the FIU report recommended that both Access Bank and Ecobank be written to for an explanation on why they allowed their banks to be used by customers to open and operate accounts and trade in products when they (customers) did not have the required license to do so.
