Why Many Family Businesses In Cameroon, Do Not Survive Their Founders (Part 18):

Gov’t Blamed For Being Indifferent When Conflicts Erupt Between Family Members, Over Family Businesses, When The Founders Pass Away

Experts Points Out That The State And Some Other Families Are Also Affected, When A Family Business Crumbles  

Many experts and observers agree that one of major reasons why Family Businesses in Cameroon, fail to survive their Founders, is the Government’s indifference to the destructive conflicts that erupt in many families over Family Businesses, when the Founders die.  There is the manipulative role played by unscrupulous lawyers, who instead fan the flames in conflicts over Family Businesses, and then exploit the situation to grab huge sums of money from family members of different camps.  Think also of the controversial decisions taken by some corrupt magistrates and State Counsels, in matters or cases on Family Businesses.

Perhaps the Government will try to argue that a Family Business is a private enterprise, and that a conflict in a Family Business between members of the family, is thus a private or family affair.  But the Government’s argument to justify its indifference does not hold water, especially when it comes to big Family Businesses.  Members of a family fighting over a Family Business are also members of the society, and the Family Business is also an actor in the country’s economy.  As the PDG of Groupe Sohaing, Olivier Sohaing, stated in an earlier article, 83 % of Small and Medium Size Enterprises in the world are Family Businesses. In Cameroon, the percentage should even be higher. So we see the impact that Family Businesses have on the economy of the country, as well as on the society.

When A Family Business Is Destroyed, The State And The Workers, Are Also Affected

Banking expert, Olivier Djaba , argues that the Government is not supposed to be indifferent to  conflicts over Family Businesses when the Founders pass away, for  the destruction of  a Family Business does not only affect  members of the family, but the country’s economy as well. Family Businesses are enterprises that pay taxes to the State, and so when a Family Business is destroyed, the State loses a tax payer.

There is also the important issue of workers in Family Businesses or enterprises.  These enterprises provide jobs to Cameroonians, and when a Family Business is destroyed, there are a number of Cameroonians that lose their jobs.  This should be a concern to Government. More so, when an enterprise is destroyed and people lose their jobs, it is not only the individuals that are affected, but their families as well.  We know what it means, when a bread winner in a family loses his job.  Djaba regrets that when bitter conflicts spark off over a Family Business after the Founder dies, the Government abandons the family to themselves or to unscrupulous lawyers.

If the Cameron Government did not have this negative  way of being indifferent to  conflicts over Family Businesses, most of the  Family Businesses across the country, that have over the years crumbled because  of conflicts between family members, when  the Founders were no there, would have been saved , and thus would  have  been existing today. There are many unemployed Cameroonians that would have been employed. The State would have been getting more revenues from taxes, and so on.

The Case Of The Enonchong Estate As An Example.

Let’s take for example the once thriving Family Business that Chief Dr HNA Enonchong left behind, and what would have likely been the state of the business today, if the Government had intervene to save the whole business.  The real estate enterprise, SCI – Abane Sarl, which Chief Enonchong  for example left behind as part of  the Family Business, would certainly not only have been existing today, but would have likely expanded   as well.  But because of Government’s indifference, the real estate was   to a large extent ruined by the family conflict over the Family Business.  Also, the Abane Global Bank Project, whose promoter, Chief Enonchong, had already raised the required capital, would have likely materialized with the creation of a commercial bank with headquarters in Limbe. The Southwest Region in particular, and the country as a whole, would have today been boasting of an “indigenous bank” called Abane Global Bank.

Gov’t Intervention Will Also Curb Exploitation By Unscrupulous Lawyers Etc.

Government’s intervention in a bitter and destructive conflict over the Family Business that the Founder, Chief Enonchong ,left behind, would have also curbed the exploitation, manipulation as well as the distortion of the Law by some unscrupulous lawyers, corrupt State Counsels, and corrupt magistrates,  that were out to feed fat from  the ‘gold mine’ (Family Business) that the Founder left for the family.

  Douala Court Refuses To Recognize Next – Of – Kin Validated  By Manyu High Court

Imagine the scandalous situation where a court in Douala ignored the Letter of Administration that was issued by the Manyu High Court in Mamfe, based on the decision of the Enonchong Family presented by a bailiff, and the ruling of the Customary Court based on the Bayang tradition, to one of Enonchong’s children that was designated   as next – of – kin by the Enonchong family> In was done in respect of the Banyang tradition, since no will was found when Chief Enonchong passed away. Instead the Douala Court issued another document to one another family member, declaring her the next – of – kin, and thus administrator of the Enonchong estate, with absolutely nothing to justify the decision.   And so a situation was created whereby two persons in one family were separately declared next – of – kin and administrators of the Enonchong Estate, by the two courts in the same country, supposed to have one Law.  Hmmmmmmmm!

Imagine the scandalous situations that were registered in a number of cases over the Family Business that was left behind by Chief Enonchong, whereby the Fako High Court in Buea would handle a matter and deliver judgment. The loser of the case instead of filing an appeal against the ruling at the Southwest Court of Appeal in Buea,  if not satisfied, would instead , go to Douala and file the same case at the Wouri High Court.  The Wouri High Court would insist to go ahead with the matter, even when been shown authentic documents that the Fako High Court, had handled the same case and delivered judgment.  Worst still, the Wouri High Court would end up delivering a ruling in favour of the plaintiff in the mater filed in the court, and thus contradicting the earlier ruling by the Fako High Court.

Yaounde Court With No Jurisdiction In The Matter, Gets Involved   

Imagine that, a Yaounde Court forced itself to handle a matter in the bitter conflict over the Family Business (Enonchong Estate), whereas only courts in the Southwest and Douala had jurisdiction over the case.  The Yaounde court illegally authorized the withdrawal of 1 billion FCFA (One billion francs CFA ), that Chief Enongchong withdrew from his account at Standard Chartered Bank Cameroon in Douala, and put in an account  he created at NFC Bank Douala for an awaited business  transaction, and suddenly passed away in June 2008, when the money was still intact in that account. In reaction, a Douala  Court confirmed that the Yaounde Court did not have jurisdiction in  the matter, and took a contrary decision.