Finance Minister clarifies OIC vehicle procurement process, highlights transparency and strategic financing

Finance Minister Seedy Keita addressed the National Assembly yesterday, offering a detailed explanation of the procurement and financing process for vehicles purchased by the government for the upcoming OIC summit. Minister Keita emphasized that the procurement was handled transparently, with proper approvals and competitive bidding, ensuring the best value for the government.

Keita confirmed that a total of 89 vehicles were purchased from Espace Motors, which pre-financed the transaction. Responding to questions from Hon. Sainey Jawara of Lower Salloum about the procurement method and transparency, Keita explained, “The procurement was done through an open tender due to time pressures, with the Gambia Public Procurement Authority (GPPA) granting approval.”

He detailed that bids were submitted by multiple companies, including Shyben Madi, TK Motors, Espace Motors, and Cornerstone. “All bids were opened and evaluated in the presence of representatives from these companies, with the final decision based on price and technical specifications,” Keita added.

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Espace Motors secured Lot 1 of the contract, providing 60 Toyota Land Cruisers at a cost of 7.4 million euros. After negotiations with TK Motors for Lot 2 could not be finalized, Lot 2 was also awarded to Espace Motors, covering 21 Prado VX, 6 Mercedes Benz, and 2 Mercedes Benz Vans, bringing the total cost of the fleet to 9.96 million euros.

Regarding the source of funds, Keita acknowledged that the purchase was not included in the 2024 budget but explained how the government managed to secure financing. “We approached Ecowas Bank for Investment and Development in West Africa, and they approved a $15 million loan. However, the financing terms were not concessionary, so we requested Espace Motors to pre-finance the vehicles,” he said. He further clarified, “As of now, we have only paid about 20% of the total cost, with the first payment of D120 million made two months ago.”

To make this payment, Keita noted that the government reallocated budgets from Ministries, Departments, and Agencies (MDAs). “We collapsed vehicle budgets from all MDAs and used those proceeds to pay the 20% advance, in consultation with the MDAs, some of whom were allocated vehicles after the summit,” Keita explained.

The Finance Minister’s detailed response underscored the government’s commitment to transparency and fiscal responsibility while managing urgent projects like the OIC summit vehicle procurement.