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Yaoundé - 22 April 2021 -
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Cameroon: Matgénie’s personnel expenses could become a budgetary risk for the state, CTR says

Cameroon: Matgénie’s personnel expenses could become a budgetary risk for the state, CTR says
  • Comments   -   Thursday, 28 January 2021 17:12

(Business in Cameroon) - The personnel expenses of the National Civil Engineering Equipment Depot (MATG2NIE) are extremely burdensome, according to the Technical Commission for the Rehabilitation of Enterprises in the Public and Para-public sectors (CTR). In its report on public companies’ 2019 performance, the commission reveals that during the 2019 financial year, those expenses swallowed 89.95% of the company’s turnover.  

"This could become a budgetary risk for the State if nothing is done," the CTR indicates noting also that the company’s social stability is threatened because of the irregular payment of wages and social benefits settlement.

Due to cash flow problems, the company was even unable to fulfill its contracts in 2019. According to the CTR report, that year, Matgénie won contracts worth XAF12.4 billion but, it was only able to carry out XAF1.3 billion contracts of billable worth, representing an 11% contract fulfillment rate.

Let’s note that in early 2019, the company signed a XAF157 billion agreement with Belgian company DEM Group that will supply it with the equipment it needs for its operations. If successful, those acquisitions will help Matgénie succeed in the construction market in Cameroon since the company already has road maintenance partnerships with municipalities.  

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