By Noela EBOB BISONG
Reports say tension is rising between the Central African Banking Commission known in its French acronym as COBAC and the government of Cameroon, over who keeps forgotten assets. Recall that these are finances which “sleep” in the coffers of financial institutions.
COBAC, last July 11, issued an order to banks within the Central African region to freeze any transfer of such funds to the Caisse des Dépôts et Consignations du Cameroon (CDEC), after Cameroon had, last December 2023, taken measures to redirect these assets in to state funds.
The government of Cameroon had justified the measure by various reasons, including un-required inheritances, accounts fallen into oblivion, or simple contact ruptures between banks and their customers. It was hoped that the sums will come to refresh the Cameroonian coffers which reports say have been going dry in recent times.
However, COBAC being the watchdog of financial stability in Central Africa has rushed to resist Cameroon’s step, citing the absence of a common legal framework to manage these funds at the level of the Economic and Monetary Community of Central Africa (CEMAC). Faced with this regulatory vacuum, COBAC has decided to take the lead by launching a site to establish common rules of the game.
COBAC’s initiative it is said will prevent operational risks linked to the management of these funds and avoid possible legal conflicts.
Experts say the financial clash between COBAC and the government of Cameroon highlights the challenges of economic integration in Central Africa. While States are anxious to mobilise all possible resources for their development on the one hand, the regional institution on its part, seeks to harmonise practices and preserve the stability of the financial system as a whole.
Reconciling the two interests is a challenge observers say will be on the table of negotiation and hope will be well handled to improve economic governance in the region.
The Central African Banking Commission (Commission Bancaire de l’Afrique Centrale, COBAC) is a supranational bank supervisor established in 1993 and based in Libreville, Gabon. It is institutionally part of the Bank of Central African States (French acronym BEAC) and is the single banking supervisor for the six countries of the Economic and Monetary Community of Central Africa (CEMAC),namely Cameroon, the Central African Republic, Chad, Equatorial Guinea, Gabon, and the Republic of the Congo.
Congolese born, Marcel Ondélé is COBAC’s Secretary General since April 9, 2024.