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Monday, February 17, 2014

Finance Minister Bans 83 Microfinance Institutions, RECCU-CAM too

By Fai Cassian
Alamine Ousmane Mey, Minister of Finance has made public a list of 83 Microfinance Institutions which have not been approved to operate in Cameroon. Surprisingly, the minister’s sledge hammer also fell on the Renaissance Cooperative Credit Union of Cameroon-RECCUCAM, a breakaway faction of the Cameroon Credit Union League-CamCCUL. In the communiqué Minister Ousmane Mey outlined that the decision was taken after a control mission of June 3, to July 12, 2014 the 84 microfinance institutions were found operating in illegality. With RECCUCAM featuring on the list of the microfinance institutions operating in irregularity, there is an atmosphere of uncertainty in the Renaissance Cooperative Credit Union in Cameroon-RECCUCAM. The question as to whether RECCUCAM needs an accreditation as an umbrella organization or an authorization from the ministry abound high. Yet a close source link to RECCUCAM hinted that the control team came when RECCUCAM had not completed its documentation for accreditation. According to the hint, the control mission visited when RECCUCAM hadn’t received the certificate of incorporation from the court and secondly the process of raising capital was ongoing. Sources say by February 6, RECCUCAM had raised over 210 million FCFA as equity capital. It should be recalled that before the minister’s ax, some microfinance institutions like EdenCCUL and Calvary had closed their doors. However, The Eye is aware that this action by the Minister of Finance is intended to check quakes from invading the sector. Bad memories of COFINEST and FIFFA Bank are still fresh in the members who got up one morning just to discover the doors of the banks closed. There is therefore every reason for such checks and balances. (a suivre
When News Breaks Out, We Break In. Minute by Minute Report on Cameroon and Africa

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