(Business in Cameroon) - On December 31, Ibrahim Talba Malla (Minister Delegate at the Presidency of the Republic in charge of Public Contracts-MINMAP) signed a decree annulling (at exclusive fault) the contracts of 35 companies, which abandoned the construction sites (road infrastructure construction sites mainly) they were in charge of during the 2018 and 2019 financial years.
The said service providers are also prohibited “from bidding on public contracts for two years." During this period, they must not bid for, co-contract, or subcontract all or part of the public works, except for a special authorization granted by the MINMAP.
These companies included, the number of service providers suspended by the MINMAP in 2020 is now 369. Indeed, the official had suspended 334 service providers (for two years) for having abandoned construction sites during the 2014, 2015, 2016, and 2018 fiscal years.
Let’s note that actors of the public contracting sector usually question the effectiveness of the suspensions. They believe that with the ease with which companies can be established in Cameroon, the suspended providers can create new companies and be eligible for public procurements.
However, the Ministry of Public Contracts thinks it is the best course of action. It estimates that suspending the companies allowed the treasury to save about XAF500 billion between 2012 and 2017. Besides the amount saved, there was a significant improvement in the execution of public works, with notably 90% of the contracts fully executed and delivered in the ten regions since 2015, it explains.