Tradex washes off GLENCORE smear, sacks CEO.

The decision taken on October 10 is said to be part of Tradex management´s effort to distance the company from the ongoing corruption scandal involving the global oil giant, GLENCORE.

According reports, Parley was roped in to the GLENCORE affair through the introduction of what the then CEO called Trad´Card. 

It was a system where people used a special card provided by Tradex to distribute petroleum products in Cameroon and in the Central African Economic and Monetary Community, CEMAC. 

Simon Paley´s management was also implicated in the accusation by GLENCORE of paying 7 billion FCFA to actors in the Cameroon petroleum sector, including the National Oil Refining company, SONARA; the National Hydrocarbons Corporation, SNH, and Tradex.

During the meeting, the Tradex Board is said to have further revealed that the Trad'Card scandal, exposed in 2022, involved a fuel purchase card for Tradex stations, leading to a loss of around 2 billion FCFA for Tradex. The key suspect in the case, reportedly close to Paley, is also said to be on the run.

The Board, reports hold, insisted that the GLENCORE and Trad'Card scandals cast shadows on the company that needed to be cleared. But the Board of Directors’ decision to remove Paley was not unanimous. Shareholders of Geogas, which holds 36% of Tradex’s capital, it is being said, did not vote for the former CEO´s dismissal.

However, with the support of shareholders from the National Hydrocarbons Corporation, which holds 54% of Tradex capital, and other shareholders with 10% stakes, Paley was removed. 

Geogas shareholders are said to have supported the appointment of Emmanuel Patrick Mvondo, formerly the company’s Deputy CEO as Interim CEO.

Parley’s supporters contest decision

While they acknowledge that the two scandals were discussed, Paley´s supporters contest the accusations and doubt their validity. 

"Regarding the GLENCORE case, some shareholders asked for direct evidence linking Simon Paley to this corruption case. No solid proof was presented. Without a court decision or a formal investigation by the Special Criminal Court, SCC, this reason seemed too weak to justify his dismissal," one of Paley's close associates is said to have argued.

As a former SNH Commercial Director, from 2003 to 2019, management is reported to have said, Paley was a key figure in negotiating Cameroonian crude oil sales under the supervision of SNH’s Executive General Manager, Adolphe Moudiki.

"Only the SNH CEO is authorized to sign oil sale contracts. Once negotiations are complete, the contract drafts are submitted to him for review. His signature binds SNH. This process was always rigorously followed, even during the years covered by the GLENCORE case," a source quoted as having said.

This article was first published in The Guardian Post Edition No: 3261 of Wednesday October 16, 2024