Time For A Trust Buster

It is often stated that it is good business practice to have vertically integrated companies. This in my view must come with a caveat.

The energy sector in the Gambia is in a precarious situation as it is heavily controlled by an entity that participates in the procurement, storage and retail of our downstream petrobusiness. Equally this entity is heavily vested in the generation of Electricity and still acts as a supplier of carburants (Heavy Fuel and Light Fuel). This is not acceptable and begs for an immediate revisit in the interest of the General public. Imagine a supplier of light fuel to NAWEC doubling as an independent power producer selling the same product (Gasoil) to NAWEC. This invites irregularities such as transfer pricing and other procurement irregularities that may be detrimental to the public interest.

The news in town is that Galp Energia has been bought by a major player in the Market by way of Mr. Bazzi's outfit Euro African Ltd. This is a major cause for concern as a storage provider cannot compete other retailers at the pump. I therefore opined without hesitation that public policy must discourage such a practice by terminating the management agreement by the minority share holder to administer the Mandinari Tank Farm depot. The new dispensation MUST allow the majority shareholders the public enterprises to form the management of the storage company. Government can also raise capital by divesting the equity holding of he public sector to the existing Oil Marketing companies as the have a direct nexus with the management of the Tank Farm.

I hate any semblance of Monopoly and encourage an anti trust environment. I therefore urge the authorities to redirect our energy policy to eliminate our heavy reliance in one individual and company. Energy is a vital component of economic development and our national aspirations must not be leverage to one or two entities. Finally, we implore on the new administration to champion an economic agenda that is premised on economic Nationalism which gives priority to Gambian entrepreneurs so long as it is not compromising economic efficiency and quality of service delivery.

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