By Lamin Njie
Alasan Ceesay otherwise known as Alasan Gent Ceesay has been dragged to court by a business partner over 19.2 million dalasis he owes the businessman.
Mr Ceesay and his company Rahma Gambia Limited took thousands of drums of oil and thousands of bags of USA and Pakistani broken rice from EM KAY Stores worth 21,210,000 dalasis but failed to pay within two weeks of taking delivery of any consignment, according to a complaint by lawyers for EM KAY Stores.
According to a June 4 agreement between Mr Ceesay and EM KAY Stores, an advance payment of two million dalasis was made by Mr Ceesay and his company referred in the agreement as the ‘Traders’.
Mr Ceesay and his company Rahma Gambia Limited on 4 June 2020 entered into an agreement with limited liability company EM KAY Stores for the supply of goods (rice and cooking oil). The latter agreed to ‘sell, supply and deliver’ goods to the traders (Alasan Ceesay and Rahma Gambia Limited) at the price of 21,210,000 dalasis.
For securing the payment of the price of the goods, the traders (Alasan Ceesay and Rahma Gambia Limited) have instructed their bankers, Ecobank Gambia Limited to pay to the sum of D19,210,000 to the company (EM KAY Stores) upon the bank receiving funds from the government of The Gambia, and the bank has acknowledged the said instructions by letter and agreed to act on the instructions of the traders (Alasan Ceesay and Rahma Gambia Limited) upon receipt of the said funds which letter is incorporated into this agreement by reference herein, Provision G of the June 4 Agreement states. The Fatu Network could not immediately establish what the government had to do with the business deal and what role Ecobank played.
Elsewhere in the agreement, it’s said EM KAY ‘may’ supply and deliver the goods at various intervals to Alasan Ceesay and Rahma Gambia Limited (the traders) at various intervals to the traders who shall accept and take delivery of the goods and “the traders shall at all material times pay for any consignment of goods supplied and delivered within a period of 14 days of the date of such delivery”.
Mr Ceesay took 9,000 drums of 20 litres vegetable oil at D990 per drum from EM KAY Stores costing D8,910,000, according to the June 4 agreement. Two thousand drums of 10 litres vegetable oil costing D1,040,000, 6,000 USA 100% broken rice in 5okg bags costing D6,780,000, 4,000 Pakistani 100% broken rice in 50kg bags costing D4,480,000 were also taken by Mr Ceesay and his company, according to the agreement.
Also, the agreement states if the traders (Alasan Ceesay and Rahma Gambia Limited) fails to pay for the price of the goods or any part thereof within 14 days, they shall pay a penalty of 25,000 dalasis per day for each day that the price of the goods shall remain unpaid.
The strict agreement states further that if the price of the goods or any part thereof remain unpaid for a period of one month from the due date, EM Kay Stores shall be at liberty to terminate the agreement, and “reserves the right to take such action as it deems necessary to recover the price of the goods together with any other monies due and outstanding”.
However, lawyers for EM KAY Stores last month filed a lawsuit at the high court against Alasan Ceesay for failing to abide by the letter of the agreement, according to bombshell documents seen by The Fatu Network.
According to a motion filed at the high court, lawyers for the plaintiff (EM KAY Stores) asked the court to place into custodia legis (in law’s custody) all the food items in Mr Ceesay’s possession pending the determination of the case. The lawyers further prayed the court to summon Mr Ceesay and his company (the defendants) to ‘provide’ and ‘furnish’ sufficient security to the satisfaction of the court to the plaintiff’s claims until the determination of the suit and until execution of any decree that may be passed against Mr Ceesay and Rahma Gambia Limited or until further orders of the court. The lawyers then asked the court to make any further or other orders as it may deem fit.
On Thursday September 3, high court judge Momodou SM Jallow ruling on EM KAY Stores lawyers’ application agreed at an in-chambers session at the Bundung High Court Annex that the defendants (Alasan Ceesay and Rahma Gambia Limited) be called upon to provide adequate security for the ‘claimed’ sum of D19,210,000 “which constitute goods taken by the defendants on credit which the afore-said defendants failed to pay for at the prescribed two weeks period of payments agreed by the afore-said defendants, their default being reason for request for prayers 2 of the motion paper dated 18/8/20 which is granted for both defendants to provide adequate security for D19,210,000.00”. The judge could not grant lawyers for EM KAY Stores first prayer which is for the goods to be placed in custudia legis due to lack of space for such ‘voluminous perishable’ items, according to court documents.
In his order after his ruling, the judge ordered that Alasan Ceesay and Rahma Gambia Ltd “provide adequate security for the principal amount claimed by the plaintiff’s for which adequate depositions by the applicants suffice for the grant of prayer 2 of the provision of adequate security of D19,210,000.00 as herein-before granted in cash deposit to the Sheriff of the High Court of The Gambia”. The judge ordered further that “in the alternative for 2 Gambian sureties required who must deposit their Gambia National Identity Cards with the courts’ registry, with landed properties in the Greater Banjul Area, the title deeds of same covering D19,210,000.00 be deposited with the I.D Cards.
“It is required that the defendant Mr Alasan Ceesay be arrested and brought to court at the next adjourned date to show cause why he should not be kept in detention until he has provided adequate security to cover the claimed principal sum of D19,210,000.00, requiring no further or other orders on the fore-going than attendance of the parties for proceedings to proceed on the 10/09/20 upon service of all court processes to the afore-said defendants at 11am; to which afore-said date and time, this case stands adjourned,” the judge ordered further, according to a September 3 order.
On Friday September 4, the Sheriff’s bailiff alongside police officers travelled to Alasan Ceesay’s Fajara Water Front residence and escorted him to the Sheriff’s office at the high court in Banjul, multiple sources told The Fatu Network. Two title deeds have now been left with the Sheriff with a valuation officer set to value the properties on Monday and see if it matches the D19,210,000 ahead of the case’s return on 10 September.
Mr Ceesay’s communication team told The Fatu Network the businessman is not involved in a legal battle ‘anywhere’ in The Gambia.
A statement by Picasso Global Communications said: “The allegation that the Chief Executive Officer and founder of Rahma Gambia Ltd – one of the few Gambian-owned companies in the food commodities sector, was taken to court in relation to a D19 million loan is entirely false and unfounded. Nothing is farther from the truth. We have contacted our client and can confirm that neither Rahma Gambia Ltd nor its CEO or any other agent acting on its behalf is engulfed in any court case anywhere in The Gambia. As of the close of business on Friday, 4th September 2020, neither the Executive Management of Rahman Gambia Ltd nor its legal representatives have been served any legal process. Besides, to the best of our knowledge, the Superior Courts of The Gambia are currently on vacation.
“According to our client, the only financial transaction that he is aware of is in respect of another business that is not related to Rahma Gambia Ltd. Mr. Alasan Gent Ceesay, the CEO of our client, Rahma Gambia Ltd, in the spirit of brotherhood and support for Gambianness, served as a financial guarantor in a business transaction for another Gambian owned enterprise some time ago. The said business defaulted in its agreement with a creditor, and an informal meeting, not a court case, was called today, Friday 4th September 2020 at Picton Street in Banjul, to find a way forward. At the end of that meeting, the issue was amicably resolved, and both parties were left satisfied.
“As a Gambian-owned business, when our client ventured into the food and commodities business – a sector dominated by non-Gambians, it expected a strong pushback and resistance from the current market players. What we did not expect though is that anybody will go as low as fabricating falsehood and unfounded allegations just to achieve that.
“The false allegations are nothing short of a smear campaign aimed at tarnishing the image and reputation of a Gambian owned company that is dedicated to providing Gambians with affordable and quality food. Currently, Rahma is the only company selling a 50kg bag of rice and other basic commodities directly to the consumers at a much more affordable price, making it the preferred choice for many in the country.
“We would like to take this opportunity to strongly encourage Gambians to stay alert to such efforts in the future as they will not relent.
“In conclusion, we would also like to reassure Gambians that their favorite provider of affordable and quality food commodities is here to stay and will continue to serve them.”
The bombshell development comes three weeks after Gambians clapped for Mr Ceesay for gifting his star employee a car worth 1.3 million dalasis.
Mr Ceesay had also last week donated medical equipment to the Edward Francis Small Teaching Hospital worth D500,000.
