By Mustapha K. Darboe
It has been a year of rumour of alleged tax evasion by a Russian trader in petroleum products, Apogee FZC.
The Dubai-based company — through a partnership with two locally registered companies — imported $30m worth of petroleum products into the country in April 2023.
All sold and no tax paid. An attempt to use the courts in December 2023, by the Gambia Revenue Authority, to recover its tax arrears failed.
Concerned about the potential tax losses, Gambian lawmakers commenced an inquiry into the scandal in September 2024 after a motion was moved and adopted to probe the allegations of non-payment of tax on July 22, 2024.
The Facts
- Between May to April 2023, a Dubai-based Russian company— Apogee FZC— imported $30m worth of petroleum products into The Gambia.
- Apogee FZC accessed the Gambian market through a collaboration with Creed Energy Limited and Ultimate Beige Logistic, two companies that are registered in the country.
- Apogee opened a joint account with Ultimate at Ecobank in June 2023 and also opened another account with Creed at the Access Bank in May 2023. The Apogee that owns the petroleum product was the sole signatory to the accounts.
- Neither Apogee, nor the two companies that were its local partners paid any tax to the Gambia Revenue Authority on the imported petroleum products.
- On October 11, 2023, the Financial Intelligence Unit (FIU) finalised its investigation into the import of petroleum products into the country and urged the Gambia Revenue Authority and Gambia Police to investigate the issue to determine potential criminal liabilities and tax obligations.
- The FIU concluded that both Creed— that was merely registered as a company— and Apogee— which is only registered in Dubai— are not properly licensed by the Public Utilities Regulatory Authority (PURA) to trade in petroleum products in the Gambia.
- In December 2023, Creed Energy sued Access Bank Gambia Limited for transferring D339m from its joint account with Apogee to the account of Ultimate-Beige Logistics Gambia Company Limited without its instructions.
- In December 2023, the GRA made a failed attempt to join Creed Energy in its legal battle with Apogee to recover its “tax arrears”.
- On July 22, 2024, the lawmakers voted for a motion establishing inquiry into importation of petroleum products valued at $30m.
- The motion was tabled by the member of the Lower Saloum constituency Hon. Sainey Jawara.
- The inquiry was led by the Finance and Public Accounts Committee and Public Enterprise Committee of the National Assembly.
- There have been allegations that the companies involved failed to pay tax because they were paying D600, 000 monthly as kickbacks to authorities who are meant to hold them to account.
- The investigation by the FIU has asked for an official probe into D600, 000 alleged bribes paid to authorities. They have also recommended a tax audit.
