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Friday, November 30, 2012

2011 CONAC Report: The Shocking Revelations on Misappropriation of State Funds, Money Laundering, 419 Scams

Billions Diverted at Kribi Deep Sea Port & Lom-Pangar
Network on Money Laundering Uncovered
40 Cases Deposited for Judiciary Action
The Anti-corruption Commission-CONAC has published a 300 pages document exposing the channels of misappropriation of public funds in Cameroon. The report which was presented to the general public by its President Dieudonee Massagam indicates that corruption in the country has reached it peak. The report was presented in four parts highlighted the strategies adopted in 2011 by the commission to check on corrupt practices.  According to the report, CONAC investigation focused mainly on four major axes, which are mining, forestry, social sector, electronic governance and public contracts. In the domain of controls, systematic controls were carried out on the execution of the Public Investment Budget, forestry and wildlife as well as the implementation of HIPC Projects in communities. CONAC control mission also visited the Kribi Deep Seaport and the construction of the Lom-Pangar dam. The third part was devoted on the prevention and punishment of corrupt practices. And the fourth part on cooperation in the fight against corruption.
2 Billion Embezzled at Lom-Pangar
Regarding the Lom-Pangar project, CONAC audit found many irregularities in procurement procedures from preliminary studies to the level of monitoring and the implementation. Cases of misappropriation of public funds estimated at billions of CFA francs involving Cameroonian officials in conveyance with officials of the bidding company contractors were also uncovered. According to the report, this project became the subject of appetites transgressors who found a boon to enrich themselves at the expense of the state and taxpayers. The payments made mistakenly to the detriment of the State or subject to corruption charges on public finances were estimated at FCFA 2,054,717,180 (two billion fifty-four million seven hundred and seventeen thousand one hundred and eighty francs).

Kribi Deep Seaport: White Collar Gangster Unmasked
The results of investigations on the project on monitoring and verification of transactions related to the expropriation and / or destruction of property as well as the compensation of victims have resulted in the discovery of numerous irregularities, abuses and financial favours. It is interesting to note that 58 of 809 beneficiaries’ compensated in each case were receive a payments ranging from 100 million and more than two billion CFA francs per person. The report of the Conac unmasked through a careful analysis of the conditions for the establishment and obtaining land titles in the area helped to understand that 65% of so-called land owners are not titled. In fact they are “delinquent white collar gangsters. A total of 149 land titles were compensated to the tune of FCFA 10,774,638,375, while people in the frantic search for property  were also identified among the owners whose lands are being registered were paid FCFA 8,383,688,000 (eight billion three hundred eighty-three million six hundred thousand). In addition, the report cites eleven categories of the biggest scams were fraudulently paid huge sums ranging from 500 million to more than 2 billion FCFA each. As a result out of the 149 land titles on the basis of which the compensation was calculated, 44 land titles were established after 6 February 2009, date of Order No. 156/Mindaf declaring the construction of port of Kribi. Compared to the overall total payment of 10,774,638,375 FCFA made as compensation to holders of land titles, those whose documents showed a date later than February 06, 2009 received 4,821,356,625 FCFA 44.7% in total.
40 Court cases/Money Laundering
CONAC report also reveled that in 2011, 40 cases were sent to court. The 40 cases were sent to court are estimated FCFA 10,518,533,171 (ten billion five hundred and eighteen million five hundred thirty three thousand one hundred seventy-one).
The report shows how public and private banks have been transformed to instruments of corruption, money laundering and terrorist financing. It also revealed how Managers of state corporations and bank managers are involved in dubious business. They are related to foreign trade transactions, foreign exchange transactions and questionable lending. Regarding the payment by check and bank transfer for the Treasury, the report shows that large sums of money from the state, representing the amount of tax charges are pending in 10 banks. The total amount of money as at 31 December 2010 amounted to FCFA 3,884,727,668 (three billion, eight hundred and eighty-four million seven hundred twenty seven thousand six hundred sixty eight francs). The CONAC instructed the Ministry of Finance to recover this money as a matter of urgency. The report also emphasizes on the fact that various techniques are used by government officials to carryout money laundering in the country. The report various techniques highlighted in the report which are commonly used include: false contracts between mother companies and their subsidiaries in transnational mafia network, the loan disguised and altered value (use of nominees) and the use of shell companies and nominees in the procurement is very rampant. This method of laundering of public funds is common. In general, the report says, the officer splits upstream markets and the provider or supplier overcharged downstream to generate a profit. The scam on the Internet "scamming or fraud 419" is also part of these techniques mafia.



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