South Africa’s Minister Expresses Concern Over Unjust Treatment Of MTN And Chococam In Cameroon

Says her visit to Cameroon last April affirmed the importance of regular consultations between South Africa and Cameroon

But asserts that the scandalous developments on June 9, 2023, in the controversial matter against MTN and Chococam, will discourage other South African companies from investing in Cameroon.

South Africa’s Minister of International Relations and Cooperation, Dr. Naledi Pandor, has expressed deep concern over the unfair treatment of South African businesses in Cameroon, as is currently happening in a highly controversial matter at the Douala court that in September 2022 passed a scandalous order attaching all the accounts of MTN and Chococam, in all commercial banks in Cameroon. A more scandalous order followed on Friday, June 9, 2023, when the same Douala Court further ordered that four banks that have accounts of MTN Cameroon and Chococam, should transfer the money to an Escrow Account to be administered by the Registrar of the court.

Minister Pandor, who visited Cameroon last April during which she met with Cameroonian authorities to discuss the strengthening of the relationship between South Africa and Cameroon, has asserted that the unjust treatment being meted out by courts in Cameroon against two major South African companies operating in Cameroon is definitely something that will discourage other South African Companies from coming to invest in Cameroon.

The minister’s declaration is contained in a press release that was issued on June 13, 2023, in South Africa’s capital, Pretoria, by the Department of International Relations and Cooperation. THE MENTOR presents the press release in its entirety, below:

Media Statement

13 June 2023

MINISTER PANDOR EXPRESSES CONCERN REGARDING THE TREATMENT OF SOUTH AFRICAN BUSINESSES IN CAMEROON

Following the official working visit and subsequent developments of Minister Naledi Pandor to Yaounde, Cameroon on 14 April 2023 to promote trade between South Africa and Cameroon, the Minister expressed the commitment to building people-to-people as well as business-to-business relations between the two countries.

Notably, the visit included fruitful discussions with His Excellency Mr. Lejeune Mbella Mbella, Minister of External Relations of the Republic of Cameroon. It also included paying a courtesy call on the Prime Minister, His Excellency Mr. Joseph Dion Ngute.

Additionally, on the sidelines of her official visit, the Minister convened a business forum attended by companies operating in Cameroon as a step towards promoting greater business collaboration and prosperity in both countries.

However, the Minister of International Relations and Cooperation, Dr. Naledi Pandor, has again expressed concern regarding the treatment of South African companies in Cameroon. On Friday, 14 April 2023, Minister Pandor was briefed by Senior Executives of the two companies, Chococam (Tiger Brand) and MTN, who reported on actions by the courts in Cameroon which have impacted their operations. The companies reported the illegal freezing of their bank accounts since September 2022. They further mentioned that despite extensive efforts to seek legal recourse, they have not been successful.

The Minister has also been briefed by Senior Executives of Vodacom regarding challenges they are experiencing in the Democratic Republic of Congo. Minister Pandor has advised the Executives of South African companies to continue pursuing all legal avenues available.

In the case of Cameroon, although the Minister remains hopeful that the matters will be addressed positively in line with the deliberations she had with her counterpart and other leaders, she has been appraised of the latest developments which among others led the courts to order the banking partners of the two companies to release the funds subject to the garnishee orders to be transferred to an Escrow account administered by the Registrar of the Court of First Instance.

In view of the illegality of the garnishee orders, this step is considered by the two companies to be yet another irregular action taken by the courts at the instance of one party in the illegal dispute.

The Minister’s working visit had affirmed the importance of regular political consultations between South Africa and Cameroon, which was to create scope for greater collaboration in key sectors and on critical projects. Unfortunately, these latest developments will challenge the extent and appetite for investments into Cameroon. Thus, the Minister called for the need for further explorations to resolve the attendant matters.

The Minister’s visit and engagements had also stressed the importance of creating a conducive environment that enables the private sector companies of both countries to operate and contribute to the implementation of the African Continental Free Trade Area (AfCFTA) Agreement.

ISSUED BY THE DEPARTMENT OF INTERNATIONAL RELATIONS AND COOPERATION

OP Tambo Building 460

Soutpansberg Road Rietondale

Pretoria 0084

MTN Cameroon Launches Counter-Offensive

Meanwhile, last week there were some local media reports that MTN Cameroon has gone on a counter-offensive in the controversial matter that was filed against the company and Chococam at the Court of First Instance at Bonanjo, Douala. It is likely that Chococam too has done the same. The counter-offensives are apparently partly in response to the advice of South Africa’s Minister of International Relations and Cooperation, Dr. Naledi Pandor, who “advised the Executives of South African companies (in Cameroon and DR Congo) to continue pursuing all legal avenues available.”

But from the look of things, if they continue to go the way they are unfortunately going at the Douala Court, the South African Government will at one point react strongly on the issue, and it will definitely not be good for Cameroon. South Africa is not just any country. Also, The Mentor has had the opportunity to visit South Africa, and there are thousands of Cameroonians living there, as compared to the few South Africans living in Cameroon. If the South Africans at one point get to know about the unjust treatment to which their businesses in Cameroon are being subjected, no one knows how they will react. And if they decide to react, not even the Government will be able to stop them.