Seizure of properties over debt claims: Mayor Augustin Tamba cries victimization.

To note that the move was provoked by a decision of the Debt Recovery Corporation, to put some of his properties on auction sale. He told pressmen that the claims leading to the seizure are false, poorly executed and a calculated move to tarnish his credibility. 

The mayor, who had now dragged the Debt Recovery Corporation to court, said the said debts are under control and properly being serviced. He insisted that all he could make from the move is a desperate campaign to tarnish his hard-earned reputation as a politician of merit.

Enter loan intricacies 

Mayor Tamba’s properties were announced to be on auction sale, from August 29 to 31. The debt recovery body, in a notice announcing the move had stated that the auction was to recover money the municipal authority was owing.

The auction targeted properties ranging from furniture, household appliances, decoration and vehicles among others. 

He admitted that he and his partners were indeed engaged in financial deals with the two bodies including the defunct financial institution, Société Camerounaise de Banque. 

Tamba said he and the targeted groups had been owing two bodies millions of FCFA taken through two deals designed to finance business operations more than 35 and 17 years ago respectively. The municipal authority said strangely, the partners have not been targeted.

He disclosed that the first deal was worth 100 million FCFA, while the second was a 150- million FCFA loan, which he and his partners got, despite having applied for 600 million FCFA. He said the second loan was to finance a one billion business venture.

100 million FCFA debt cleared

Concerning the 100 million FCFA loan, Tamba said he cleared everything, despite the fact that his partners were unable to service the debt. Tamba further explained that he had 25% shares in the business, someone had 30% while another shareholder had a land title as collateral.

“The other partner deposited a land title in this bank and it was transferred to the SRC. To date, I have been the only one being asked about the loan. It is not like I was making payments on behalf of other people. I preferred to assume the responsibility of the people I knew we worked together with before. This is becoming a personal problem for Augustin Tamba,” the mayor said regrettably. 

He underscored that: “I would like to remind everyone that the entire sum has been paid to date. I no longer owe this company. I assume my past as a businessman and businessmen work with banks. It is not a one-stop shop,” he added.

Situation of 150 million FCFA

Talking about the 150 million debt, Tamba said recently, he paid in 25 million FCFA to the bank and asked to be given until the end of December 2024, for the next payment. Tamba said his request was refused as the bank insisted on September 20, 2024, as the deadline to clear the debt.

The municipal authority questioned why his properties were put on auction before September 20 and why other members of the team who borrowed the money are not being pursued.

Societes Camerounaise de Banque deal similarly disturbing

According to Mayor Tamba, he and the Société Camerounaise de Banque were brought together after he and his company approached the financial institution some 17 years ago to for a loan of 600 million FCFA. 

He reiterated that the money was to finance a business operation of about one billion FCFA.

Tamba said he and the group have since maintained a good working relationship and followed up with the payment of about 75 million FCFA.

This, he said, has been the case, despite the fact the institution left the company midway since they could not get the one billion FCFA needed for the business. He said the situation disrupted their investments.

Despite the limitations, the mayor added that he and the other partners have been consistently repaying the debt and had unveiled win-win mechanisms to ensure the complete payment of the debt.

Mayor Tamba said he had just 40% share in the deal. He added that he was shocked when the debt recovery institution put his property on sale before the deadline of September 20, 2024.

“To date, we have not yet reached the agreed date outlined for the next payment which is September 20, 2024. Unfortunately, I have received the constraints and, faced with these constraints, I have reacted and told them that I am going to pay them,” he said. 

He further explained that: “I have 40% shares and a former deputy mayor who is now a mayor, also has 40% shares in them. He has also deposited a land title in this bank with a file containing documents transferred to the debt recovery body”.

Mayor Tamba says being scapegoated

According to Mayor Tamba, he is also shocked by the fact that unlike what obtains in other deals, the financial institution is battling to seize his properties when there are collaterals.

The long serving and highly trusted mayor, said he is particularly worried that the institution is not putting the same pressure on other partners in the deal.

“What we have done is make the most of bank guarantees, which are generally issued for performance bonds and start-up advance guarantees, which can only be mobilised if the company benefiting from the bond requests that it be carried out. This was not the case,” he said. 

He noted that the bank debited the customers’ accounts without demand. The situation, he said, now leaves he and his group without knowledge of the exact amount they are currently owing. “I cannot pay by constraint, sums that are not due,” he said. 

Seizure ill-intentioned, tarnishing his image

The mayor insisted that seizing his properties is ill-intentioned. The renowned politician who has been the Mayor of the Yaounde VII municipality since 2013, has described the development as unfortunate. He decried that some people have gone on social media using the incident to tarnish his image.

“There are things that I am hearing in the political circles as a result of this mess which is not pleasing to me,” he declared.

“I want these things fixed as fast as possible. This is not normal. We want to get to the bottom of it. I have a mandate given to me by a people and cannot accept my image to be dragged in mud,” he added. 

Drags debt recovery agency to court

The mayor, meanwhile, announced at the presser that he has dragged the debt recovery agency to court. He insisted that the seizure is abusive. He said some of the things seized, including two Hilux vehicles, are not his. 

To note that Tamba is also National President of the United Councils and Cities of Cameroon, UCCC.

This story was first published in The Guardian Post issue N0:3221 of Friday September 6, 2024