(Business in Cameroon) - According to information from reliable sources, the domestic gas leader in Cameroon, Société camerounaise de transformation métallique (SCTM), has just filed proceedings with the courts to have the 17 million FCfa fine imposed by the Ministry of Trade struck down. An authorised source has revealed that the domestic gas distributor’s justification is that the Ministry of Trade may not receive such fines as this is the domain of the Treasury. In addition, the company cites the absence of open discussion when the assessments that led to the fine were being carried out.

These arguments have been characterised as “fallacious pretexts to not pay” by a reliable source who suggested that the Ministry of Trade does have the authority to collect fines which are then paid over to the Treasury. Furthermore, evaluation reports by SCTM have been co-signed by Ministry assessors and SCTM heads themselves, as is the norm.

Following the regulatory monitoring conducted in the field, the Ministry of Trade’s officials had imposed cumulative fines totalling 150 million FCfa on five companies within the domestic gas distribution sector. These are SCTM, Camgaz, ranked second on the market, MRS, the Nigerian company that acquired Shell Cameroon’s network, Oillibya, which acquired Mobil’s assets in the oil distribution sector, and Kosan Krisplan, a company more known under the name Gloacal gaz.

Authorised sources have revealed that these operators were slammed for using improper packaging and cheating on the amount of gas being distributed. Most of them have sought amicable resolution, but SCTM seems to have chosen the path of legal action.