Microfinance: COBAC places Credit Mutuel on liquidation

The 19- year old  Crédit Mutuel, a micro finance institution has been placed on liquidation. 

The institution’s trouble became evident  in December 2016 when the Central African Banking Commission , COBAC  designated a provisional  administration to redress the situation. 

After no positive reports were recorded, the Central African Banking Commission withdrew the licence of Crédit Mutuel

( no 2018/462/ of 20th Sept 2018 )

Mr Emmanuel Eboa who was designated liquidator has called on creditors to present valid documents to justify  their claims between 28th Feb to 26th March 2019.

Disappointed creditors have been invading the deserted premises with  the aim of making withdrawals.

But, the doors of the institution remain sealed,  the premises abandoned.

Credit Mutel : The onset of financial crisis

Reports hold that in 2016, the founder of Credit Mutuel Joseph Njeunou died.  Ownership dispute between family and financial partners ensued .

The big clients became very uncertain and began making massive withdrawals.

Inspite of management’s efforts, the customer confidence was at its lowest. 

Persistent rumours held that the institution had gone bankrupt. The rumours completely paralysed the smooth functioning of the micro finance .

The Credit mutuel collapse comes after Cofinest,  FIFA, , City Trust Credit Fund , Cadecci and others that have suffered the same fate.

To check the recurrence of bankruptcy, COBAC has instituted a new regulation for all microfinance within the CEMAC sub region.

These institutions have upto 2020 to comply .

 

Kathy Neba Sina

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