Construction of Olembe Sports Complex: Paris court on gov't's throat over 15 billion FCFA owed Magil.

A new ruling from the International Court of Arbitration in Paris, France, has ordered government of Cameroon to deposit the whopping sum of over 15 billion FCFA, into an escrow account, although the case is still pending in court. 

This is the latest episode of a long-standing court battle between both parties. 

Cameroon is represented at the tribunal by the Ministry of Sports and Physical Education, MINSEP. 

According to reports, the latest court decision is coming after Magil and the government had another hearing recently. 

Although nothing has leaked from what transpired at the Paris tribunal, it is reported that the court issued an order, ordering to the State of Cameroon to pay 15.4 billion FCFA into an escrow account.

According to reports, the temporarily blocked funds will be kept in the escrow account, pending the final verdict of the case. It is still unclear when the highly awaited verdict will be passed. 

How we got here?

It should be noted that Magil dragged the government of Cameroon to court, after terminating the contract for the completion of the Olembe Sports Complex. 

The firm, we gathered, terminated the contract over unpaid invoices and other contractual failures by the State of Cameroon. The contract was terminated in 2022. 

Magil was, it should be recalled, was hired in 2020 and was in charge of delivering the remaining components of the complex after the departure of Italian company, Piccini.

The cost, we gathered, was evaluated at 54.8 billion FCFA. Reports suggest that Magil received only 42 billion FCFA of the initial amount, following a decree signed by President Paul Biya, on February 16, 2021.

The decree, it was said, authorised the Ministry of Economy to contract a loan of 55.1 billion FCFA, from Standard Chartered Bank London and BPI France Export. 

As part of its terms of reference, Magil was tasked with pursuing phase 1 of the project, notably the completion of the main 60,0000 seater stadium, and the other components of the stadium. 

Magil, sport ministry clash over funds 

According to reports, Magil has been accusing government of owing them while government, has for its part, asked the company to justify the use of 42 billion FCFA already paid. 

Magil also said that upon resuming work on the facility, they discovered that subcontractors were owed a debt of 12 billion FCFA. 

While the Canadian company demanded further payment from the government, the Ministry of Sports and Physical Education, reports say, asked Magil to provide proof of the 42 million FCFA that the government claims to have already paid to the contractor. 

According to the court, the first invoice sent by Magil to the Cameroonian government was paid with nearly 15 months of delay, along with 11 other invoices, worth 15.4 billon FCFA, which are disputed.

The Ministry of Sports also accused the Canadian company of delaying the progress of the Olembe Sports Complex. Meanwhile, Magil cited the ministry's blockage of the file. 

The sports ministry, which represents the government in court, has not commented on the decision from the International Court of Arbitration in Paris. 

Construction remains grounded amid battle 

The Olembe Sports Complex has been embroiled in controversy and legal battles since the end of the 2021 AFCON.

Years after the launch of works at the Olembe Sports Complex, the facility is yet to be completed. 

Besides the main stadium, which can accommodate up to 60,000 spectators and its two training stadiums, the rest of what was supposed to be constructed, has not seen the light of day. 

The Olembe Sports Complex was supposed to be equipped with a gymnasium, an Olympic swimming pool, an outdoor sports centre, a 70-room hotel and a shopping centre, with a commercial centre, including cinema and conference rooms.

This article was first published in The Guardian Post Edition No:3457 of Tuesday May 27, 2025