By: Fatou Krubally
Mr. Louis Prom, the court-appointed receiver for companies linked to former President Yahya Jammeh, Monday told lawmakers that most of the businesses placed under receivership in 2017 were financially insolvent and burdened by heavy debts.
Testifying before the National Assembly’s Special Select Committee on the Sale and Disposal of Assets Identified by the Janneh Commission, Mr. Prom said 17 companies under his care were “financially weak,” with several dormant and unable to operate due to liabilities and administrative neglect.
“Most of these companies were not functioning, and they had serious financial issues. Observer Company, for instance, had a D17 million tax liability with the Gambia Revenue Authority,” he said. “That liability led to the company’s closure shortly after our takeover.”
Mr. Prom said Augustus Prom & Co. was appointed as receiver by a High Court order dated 21 July 2017, initially for six months. The appointment was extended several times, finally concluding in June 2019. He clarified that his firm’s mandate was not to sell the companies but to manage and preserve their assets.
He told the committee that upon visiting the various business premises, many offices were locked and inactive, with no staff present. He cited Africara Insurance and its associated forex bureau as examples of firms that were dormant and non-operational at the time of takeover.
Mr. Prom said his firm secured physical assets such as vehicles, office furniture, and equipment from warehouses located at the airport. According to him, some of the machinery belonged to Westwood Timber and a gold dust refinery known as MCG.
He said that due to time and financial constraints, Augustus Prom & Co. focused on safeguarding assets and maintaining limited operations at companies like KGI and the abattoir. “We were not in a position to turn around the companies within the limited time frame,” he said.
Mr. Prom also told the committee that the companies inherited significant debt, including a D53 million claim from NAWEC. He said the lack of support from the Attorney General’s Chambers forced the firm to hire private lawyers to defend the companies in court.
He added that the firm submitted three comprehensive reports to the High Court, Attorney General, and the Janneh Commission detailing the legal and financial state of the companies.
