ANB-BIA SUPPLEMENT

ISSUE/EDITION Nr 354 - 15/10/1998

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Cameroon

State business deals under the "Renewal" (1)


by Sylvestre Tetchiada, Cameroon, July 1998

THEME = CORRUPTION

INTRODUCTION

Look how our cabinet ministers become rich -
major procurement contracts, business deals, involvement in small businesses...,
there's no lack of ways and means
for a Minister who wants to get rich quickly

In the popular imagination, a Minister of State is necessarily a very rich man. In Cameroon, some of them are immensely rich, a confidential report puts their fortunes in the billions. In sharp contrast to a Minister's situation when he first takes up his post!

Last year, the Yaounde weekly Mutations revealed that Ministers can earn over CFA francs 600,000 (FF6,000), and if, before their appointment they already earned more than CFA francs 600,000, they have a right to be compensated for loss of earnings. Also, once they are appointed, they receive a credit of some tens of millions CFA francs - which they do not pay back - for the purchase of a government car (powerful, preferably a German make), and that's about it. Eventually, the lucky ones who get to preside over the board of a state-run business, are paid a given amount. It's not known if there is any kind of "cash settlement" at the end of each month for "services rendered".

The mind boggles when one sees how these "servants of the people" scramble to enter government; the sacrifices they make and the voodoo rituals they undergo in order to remain in power. And see how they shed tears when they're sacked! The clever ones know that a ministerial portfolio means large earnings and can make one a millionaire or even a billionaire if one is in the right place and knows the "right people". It doesn't do to be too scrupulous if one wants to get rich quick!

When a Minister wants to make money right from the word "go", he sets up a company to provide various services for the ministry he heads. There's the upkeep of the offices, provision of materials, paper, office furniture, vehicles, the list can be made endless.

A new ministry creates a "general supply company" under the name of a brother or somebody he trusts, his mother - even if she is already dead - or even his mistress. There is some over- invoicing (nothing very serious you understand), even if nothing is delivered. But the Minister (here people like to call him "His Excellency") knows how to get priority in payment: an urgent telephone call to his colleague the Minister of Trade and Finance is all that is needed.

If the provisions' scam does not enrich him sufficiently, there are always new buildings, civil engineering projects and public works to fall back on. Thus, the former Minister of Public Works, Jean-Baptiste Bokam, who was sacked in 1997, did not hesitate to entrust the work of re-surfacing the roads to his wife. Unfortunately, following a quarrel about the unequal division of the spoils among the partners in the project, the affair was reported in the newspapers.

Another former Member of Parliament from the one-party era, used to have a small business selling computers. Now, as Minister with special responsibility for Parliamentary Affairs, he has cultivated the art of "obliging" his clients. "Gregory", as he is affectionately known by his admirers, knows his way round the computer maintenance business in the public sector. This brings in around two hundred million francs annually, even if the computers are never serviced: the installation of new computers is sub-contracted out to consultants, and that is all.

Apart from the multiplicity of possibilities arranging business deals, there are important contracts to be signed and the projects approved. Let's take a look at a typical case. A Minister of Posts and Telecommunications who has to negotiate the updating of an urban telephone system with a multinational company, seems to think he has a right to a commission as a reward for due diligence. In fact, that's what happened when it came to signing a contract with INTELCAM (Cameroon's International Telecommunications Company) - the Minister in question demanded 240 million francs which he received from a French company.

It's generally "understood" that everyone closes their eyes to these goings-on, even when the amount can be as much as a billion francs. The multinational loses nothing, as the invoice is simply "adjusted" accordingly, to cover the hand-out.

The "Minefi" (2) - heart of the 30% system

The Minister of Trade and Finance has a relatively easy job, especially when it comes to "managing" a national debt of a billion billion dollars. It's called the "30% System". He doesn't do anything publicly but instead sends out a number of flunkies to go and see those who are owed money by the State. The State has the full amount available, but what happens? "Look", says the Minister's messenger. "We can only afford to pay you two-thirds of what you're owed. Will you accept this". The person owed money by the State is only too happy to get something - after all, he's been waiting for years to be paid back. The other third goes into the Minister's pockets (with the debt recorded as having been paid 100%). It could be that of a 100 billion francs officially paid out by the end of each year, 30 billion is salted away by unscrupulous officials.

The "30% System", plus widespread corruption of the state apparatus, prompted the anti-corruption campaign which was launched last April. But after only three weeks of uproar in the Media, it was suddenly cut short because of pressure from different sources. Things are much more lucrative when it comes to international financial operations. An example: the CFA franc's devaluation (by 50%) in 1994. The Minister responsible for overseeing the operation knew that devaluation was on the cards, so he quickly invested the country's money in a financially safe place, let things die down, and then pocketed the profits made from his "investment". Such operations are called a "clever ruse", since insider-dealing is not yet defined in Cameroon as an economic crime

Gifts embezzled

Besides the Ministers who juggle signatures and documents, there are those who have access to more material things. A Minister of Social Affairs has no commercial transactions or projects to approve. But there are gifts from international organisations to be processed: e.g. tricycles for the handicapped. So what happens? "His Excellency" organises a glittering reception in the full light of the nation's media, for the official receiving of the tricycles by his ministry. Then comes another reception to distribute these machine to a few carefully selected handicapped people. The remainder of the tricycles end up with a local dealer who quietly sells them off. Proceeds are then "suitably" divided.

The Minister of Culture has the smallest budget of all the ministries. For him, the opportunities of making a bit on the side are rare. So he betakes himself to the National Museum and helps himself to its sculptures, statues, other works of art, elephant tusks and snake skins. And when some statues end up in the West - like the famous Afo Akom in the United States - there is a loud clamour for them to be brought back home. Alas for the Minister, tongues are a-wagging that he knows a lot about this business...

"His Excellency" turns to politics

When a Minister is not in a position to approve contracts, he's still got to make his profit somehow. So what happens? He becomes a politician. If he's in the central committee of the ruling Democratic Rally of the Cameroonian people, better still for him! He becomes very active in the villages, where his every move is recorded on national television. He then makes certain he's in a position of power within the party when the election campaign begins and is able to recharge the slush fund (which he controls) thanks to the business people in the area who are now "his people".

Once the election campaigns are over, there are still opportunities available to raise a little extra for one's personal needs. For example, occasions such as the anniversary of Paul Biya coming to power; and the umpteenth anniversary of the party's foundation. Everyone must make a suitable contribution, but often nothing is organised and the money collected ends up in the pocket of the organiser.

Some Ministers who are not sufficiently "politically- minded" have nothing, get nothing, and are in danger of ending up poor men. So they do their best to prove to all and sundry that they are extremely concerned with matters of national interest. It's not complicated - their "concern" can lead them to helping themselves to money put aside to pay the bonuses of Cameroon's national football team, the "All-Conquering Lions". Or they simply transfer to their own bank account, money meant for their ministry. There's no proof, obviously, of the Minister's "activities".

By way of conclusion - in Cameroon, a Minister will not be sent to prison because he has misappropriated a few little millions of francs. Ministerial immunity really does exist. Even when the Minister's wife at home manages a network for stolen vehicles!

NOTA - (1) The "Renewal" is a policy initiated by President Biya when he took over power in 1982. It gravitates around four points: Democracy; freedom; openness; political maturity.
            (2) Ministry of Trade and Finance.

END

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