Deposits & Consignment Fund DG counts achievements after 18 months of operation.

Obam further dissected hurdles faced, especially in recovering idle funds, which it is empowered by law to receive from financial institutions. 

In the refreshing and exciting interview, Evina Obam threatened to go tough on financial institutions yet to surrender idle funds in their keeping. He however indicated that there is still room for mutual understanding as CDEC continues to solidify its position as a new national development agent. Excerpts 

Mr Director General, how would you assess the operationalisation of Deposits and Consignment Fund, more than a year after it fully went operational?

The process of making CDEC operational began on 20th January 2023, with the appointment of the main managers by the President of the Republic, in particular the Chairman of the Board of Directors, the Director General and the deputy Director General.

To date, we are progressing satisfactorily. In fact, in less than eighteen (18) months, the following non-exhaustive achievements can be cited: the Board of Directors has been set up and has held four (04) sessions; the Internal Commission for the Award of Contracts has been set up; a headquarters building has been acquired (in the form of a lease), fitted out and equipped; the managers of CDEC have been sworn in as bearers of constraints before the competent courts; an internal text of operation has been drawn up and adopted by the Board of Directors. We have also adopted a three-year strategic plan spanning 2023 to 2025. CDEC now has an organic framework, text guiding staff, internal rules, code of ethics and a professional code of conduct.

In addition, four texts of application of the law and the decree governing CDEC have been drawn up and signed by the competent authorities. These are: a decree of the Prime Minister, Head of Government; two decisions of the Minister of Finance and a convention between the treasury administration and CDEC.

We have carried out sensitisation of holders of the funds and values devolved to CDEC and signed conventions with these actors. There has been the effective transfer of the resources devolved to CDEC by certain actors among others.

Mobilising resources was one of the main objectives of this operationalisation process. To this end, and in order to integrate the CDEC smoothly into the institutional and financial landscape, a participatory approach was adopted, giving priority to consultations with banks, insurance companies, legal professions, stakeholders in the  port clearance chain, public service providers  (water, electricity, telephony and housing), public contract players among others. These consultations are still on as part of ongoing efforts to raise awareness among the various stakeholders.

On December 1, 2023, the Prime Minister signed a decree outlining the terms and conditions for the transfer of funds vested to CDEC. To date, how many companies have already voluntarily made the transfers and what has CDEC received?

Several players have shown exemplary citizenship by spontaneously transferring the funds and securities recorded in their books to CDEC. After 31st May 2024, the deadline set by the Prime Minister, Head of Government, in his decree of 1st December 2023, CDEC received billions of FCFA from some twenty institutions; including the Public Treasury, the Bank of Central African States, BEAC, ; certain credit institutions, insurance and Mobile Money companies.

To use your own words, some institutions are still feed dragging, projecting specious arguments. Does this mean your participatory approach needs to be reviewed?

Certainly, some companies invoke fallacious arguments to avoid transferring to CDEC the funds and values to which it is legitimately entitled.

Nevertheless, we believe that the participatory approach advocated should not be called to question. It is important to stress that we are evolving within the framework of a reform, and its implementation requires time to be fully accepted by all stakeholders and to bear all the expected fruits.

To this end, I congratulate all responsible credit institutions that have complied with the laws and regulations of the Republic of Cameroon by transferring funds and securities to CDEC. Their efforts and commitment clearly demonstrate a willingness to facilitate the process of making CDEC operational.

I would like to take this opportunity to encourage all those who are behaving in an uncivil manner to embrace the reform by following the example of those who have already made the transfers provided for by the laws and regulations of the Republic.

Now, that the voluntary transfer phase is over, how do you intend to force latecomers to transfer?

Although formal notices have been served on latecomers, we continue to promote a participatory, concerted and voluntary approach. We have noted that most of these latecomers are prepared to comply with the laws and regulations in force.

Above all, it should be noted that the laws and regulations of the Republic have given CDEC all the legal means necessary to force recalcitrant applicants to comply. 

Already, the law of 25 July 2023 governing guarantees and the recovery of debts by public entities benefiting from the Treasury's privilege, as well as the Prime Minister's decree setting the terms and conditions for the transfer of funds and securities vested on the Deposits and Consignment Fund, allow it to carry out audits, on-the-spot and documentary checks on the completeness of the funds and securities held by the players, without being opposed to professional or banking secrecy. 

In addition, if the forced recovery of funds and/or securities is necessary, CDEC may be required to move all funds and securities held with credit and microfinance institutions that demonstrate incivility in the context of transfers to credit and microfinance institutions that respect the laws and regulations of the Republic. This will be in order to preserve its reputation as a trusted third party that must collaborate with civic institutions.

Individuals or managers of microfinance establishments who initiate actions aimed at evading or withholding even a single cent of the funds allocated to CDEC will incur criminal liability, as these funds are considered to be public funds according to article 36 of its organisational decree.

This is an opportunity for me to remind credit and microfinance institutions that may have activated certain accounts by carrying out credit-debit operations after the deadline of 31 May 2024. They will be subject to appropriate measures for such manoeuvres, as a zero-tolerance policy will be applied.

We are talking about dormant accounts held by individuals and companies. Once these sums have been transferred to CDEC, how will they be used?

Before inactive account funds are transferred to CDEC, they must meet the following conditions: six (06) years for chequing accounts and eight (08) years for savings accounts. Once transferred, the funds are kept, secured and managed in accordance with the laws and regulations in force by CDEC.

When a beneficiary or his beneficiaries come to CDEC, the funds are returned to them immediately on first request. This is one of the main advantages of CDEC. Beneficiaries will now have a single point of contact when inactive or transferred assets are being sought.

While awaiting their recovery, these "unclaimed" assets collected will also be put to good use through financial engineering and will enable CDEC to finance projects of general interest that will help to improve the living conditions of Cameroonians. 

The mobilisation of these resources by CDEC will provide the State with a new institutional investor and additional leverage to support the implementation of long-term projects in the areas of health, education, housing among others.

What can CDEC do if there are complaints from clients of banks and insurance companies?

When we talk about securing the sums transferred to CDEC, it is with a view to returning them at the first request to their owners or beneficiaries.

It should be remembered that all funds entrusted to CDEC are third-party resources and are intended to be returned. Restitution on first request is therefore the basis of CDEC’s business model as a trusted third party.

In concrete terms, following the transfer of funds from unclaimed accounts by an insurance company, CDEC has already received withdrawal requests and the beneficiaries' resources have been returned on first request.

This story was first published in The Guardian Post issue No:3143 of Wednesday June 19, 2024