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Afriland First Group, a multinational financial institution led by Cameroonian banking magnate Paul Fokam, has been accused of financial wrongdoing involving its Democratic of the Congo subsidiary, which was recently placed under the management of a provisional administration committee.
The minority shareholders of Afriland First Bank RD Congo, including its CEO Patrick Kafindo Zongwe, have accused the multinational financial institution of paying “undue” dividends and robbing the credit institution through technical assistance contracts.
This is in response to an earlier allegation by the subsidiary’s majority shareholders, including Fokam, who accused minority shareholders of financial malpractice, resulting in a twist in a dispute that has recently taken on a political and legal dimension.
The squabble between Afriland First Bank RD Congo’s majority and minority shareholders comes after the subsidiary was placed under the management of a provisional administration committee, with Central Bank of Congo Governor Marie-France Mahlangu Kabedi Mbuyi issuing a “notice to the public” on the same day.
Following the signing of the document by the Congolese economist, a provisional management committee of seven members was immediately appointed to take charge of the credit institution, in which Fokam’s Afriland owns 95.6 percent of the capital.
The appointment of the committee implies that the shareholders and directors, specifically the group of majority shareholders, no longer have any control over the bank.
The recent developments come after the multinational lender announced plans to sell its Ugandan subsidiary, Afriland First Bank Uganda Limited, as part of its Ugandan exit strategy.
The decision to liquidate its Ugandan subsidiary and sell off the bank’s assets was made as part of a strategic business decision to reduce the company’s presence in Africa.
