(Business in Cameroon) - After discreetly managing his career for about 30 years, this renowned Cameroonian lawyer has been in the spotlight since the beginning of 2023. He initially entered the shareholding of Savannah Energy in April and became the board chairman. Due to the Cameroon-Chad diplomatic dispute involving the mining company, his name appeared a lot in news headlines. He is once again in the news because of a conflict with the global audit and consulting giant Ernst & Young. These two events are interrelated, and Joseph Pagop Noupoué has agreed to explain the how and the why. He granted us an exclusive interview on October 14, 2023, in Douala, to share his side of the story.

Business in Cameroon: The international firm Ernst & Young (EY) reported that you were removed from your position as Country Director for Cameroon on October 6, 2023. But in a public statement following this announcement, you claimed you had terminated your agreements with EY. Can you explain what really happened?

Joseph Pagop Noupoué: To give some context, as part of EY's restructuring called "Project Everest," some associates in EY's Francophone African network, including myself, negotiated for this restructuring to be extended to our countries. Non-audit consulting activities in nine Cemac and Uemoa countries were thus to be grouped in an independent sub-regional network, in which partners were no longer subject to the restrictions existing at EY.

However, this plan was opposed by American EY associates, which led to the project's failure. Considering my desire to change my professional path, I reached an agreement with EY regarding the change in our collaboration terms. As of the end of May 2023, we agreed that I would step down from various responsibilities I held within EY and my Cameroonian and Chadian companies. In line with these agreements, I left my position as Country Director and introduced my interim successor to the firm's staff on August 31, 2023. However, since July 2023, EY has not implemented our agreements and has, instead, attempted to use a former employee to take control of my companies through unlawful actions and intimidation.

Business in Cameroon: EY Cameroon's statement says the network restructured around Abdoulaye Mouchili, who now leads the audit; Anselme Patipewe, in charge of taxation; and Erik Watremez, the interim Country Director. According to our information, Mr. Mouchili was also appointed as the head of ECA Ernst & Young Cameroon after a general assembly held in early September 2023, which you contested. Why?

Joseph Pagop Noupoué: This ordinary general assembly was called by an ad hoc agent appointed by the court at the request of three individuals. The process leading to this assembly and its agenda violated applicable laws. For example, two of these individuals were no longer ECA SA shareholders when the court was involved. Therefore, they had no legitimate reason to act.

BIC: EY claims that you wanted to separate the Cameroonian legal entities from the EY Global network, which they say goes against their rules of regulation and governance. Is that true?

Joseph Pagop Noupoué: It's worth noting that the EY network's membership agreements outline what can lead to exiting the network. Among the things that motivated our decision to leave the network was the arbitrary suspension of our access to EY-provided IT tools on October 5, 2023. Following this, Ernst & Young Cameroon Sarl, a company I founded in 2011 that joined the EY network in late 2011, and in which I am the sole shareholder, notified EY Global Ltd, the British company managing the EY network, of its decision to exit the network. This exit also involved all other companies in Cameroon and Chad. The notification to EY Global Limited explicitly referred to Article 18 of the EY Regulations, on which it was based. The EY network leaders have the right to disagree with me. Per our agreements, in the absence of an agreement or satisfactory mediation, such disputes must be resolved by the International Court of Arbitration of the International Chamber of Commerce (ICC).

BIC: You claim ownership of Ernst & Young Cameroon SARL and ECA Ernst & Young Cameroun S.A., which you renamed ECA Tax & Legal and ECA S.A. respectively on October 6, 2023. These actions are contested by the EY network. When, in 2011, you left the head of EY's Africa department in Paris to expand the network in Cameroon, what was the deal between you and EY? And did you stick to what was agreed?

JPN: My commitments as founder and manager of the Cameroonian companies in the EY network have always been strictly respected. The EY network and I have had 12 years of very good collaboration in Cameroon and in all the countries I have managed.

BIC: According to our information, tensions with EY date back to the Everest project. You would have opposed the options of the umbrella company... Which would not have pleased you. What can you tell us about this episode?

JPN: I opposed the way they wanted to divide the profits made from the global consulting work of EY's network. They wanted to put it in a new company listed on the New York Stock Exchange and share it with partners from 74 out of the 150 countries where EY offices are located. We settled this issue to the satisfaction of the partners involved. But it all fell apart because the EY partners in the United States said no. If it weren't for their veto, this disagreement wouldn't have been such a big deal in the network's history.

BIC: People have suggested that your dismissal or the termination of your agreements with Ernst & Young might be a consequence of your stake in the British oil and gas junior, Savannah Energy. What's your response to that?

Joseph Pagop Noupoué: As I've just mentioned, I was never dismissed. I decided to step down from my position as Country Director of the EY network for Cameroon and Chad, and ECA Tax & Legal decided to terminate its membership in the EY network. Neither of these two events was a consequence of any stake in any company.

BIC: When you were leading EY's Africa department in Paris, were you an employee? If so, when did your employment contract end?

Joseph Pagop Noupoué: I was an employee and later an associate at Ernst & Young Law Firm France until December 31, 2013.

BIC: We've heard that when a person holds high-level positions within the Ernst & Young network like you did, it is strictly prohibited to invest in a company unless expressly authorized by the firm after a duly examined request by its regulatory bodies. Did you comply with these clauses before purchasing assets in Savannah Energy?

Joseph Pagop Noupoué: Absolutely. I have been working within the EY network for 25 years, and I have held significant positions in various countries, even before my return to Cameroon. Accepting the role at Savannah Energy and the investments you mentioned followed all the reporting and notification rules outlined within the EY network.

BIC: This operation would have cost you more than one billion FCFA. How did you get this money? Did you receive assistance from certain "Cameroonian personalities" linked to this oil company, as suggested by the Chadian government?

JPN: It's surprising how many people, even those with a good understanding of economics and finance, believe that you need help from public figures to finance an investment of this size. Your magazine is well-equipped to educate readers about the various financing options available in the market and from banks for such transactions, especially considering my background as an investor.

BIC: You started working with this British oil and gas company while you were employed at Ernst & Young. According to our sources, some see this as a violation of ethical standards within the Ernst & Young network. How do you respond to these suspicions of insider trading?

JPN: The transaction in question does not breach ethical standards within the Ernst & Young network. As I mentioned, the network's relevant authorities were duly informed, and all necessary formalities and procedures were followed. There is no valid reason for the suspicion of insider trading.

BIC: In your statement, you reassure clients and other partners of a smooth continuation of the collaboration with the now-independent entities that used to operate under the EY label. It appears there may be a dispute among clients between you and EY Cameroon. Can you explain the situation?

Joseph Pagop Noupoué: For that to happen, the EY network would need to establish a presence in Cameroon. As we speak, EY seems to mainly rely on defamation and disparagement. The reality is that EY Cameroon, which issues these statements, is like a virtual company. It doesn't really exist! Clients have service contracts with legal entities that have changed their names but continue to provide the expected services. When renewing these contracts, some clients may choose to consider other providers, including EY Cameroon, if such a company exists.