Senegal’s financial landscape continues to reveal hidden complexities as the Banque des Institutions Mutualistes de l’Afrique de l’Ouest (BIMAO) has secured a confirmed mortgage against assets belonging to Elimane Lam, a businessman operating under the commercial name JIM Production. The resolution, homologated by the Commercial Court of Dakar on , brings to a close a six-year dispute over a debt nearing 3 billion CFA francs.
The agreement stipulates an immediate cash payment of 1 billion CFA francs from Lam to BIMAO. This payment is structured in tranches, beginning with an initial disbursement of 300 million CFA francs upon homologation of the conciliation protocol. The remaining 700 million CFA francs will be paid in bi-monthly installments of 100 million CFA francs, commencing at the end of .
To secure the repayment, BIMAO has placed a lien on Lot No. 6 of Title Deed 2141 in Ngor Almadies, which encompasses a building containing 10 apartments owned by Lam. The protocol dictates that for each 100 million CFA francs repaid, one apartment will be released from the mortgage. This phased release provides BIMAO with a tangible, decreasing security interest as the debt is settled.
Beyond the 1 billion CFA franc cash payment, Lam is also addressing the remaining 1.918 billion CFA francs of the principal debt through a ‘dation en paiement’ – a payment in kind. The SCI CHELMA Group, acting on behalf of Elimane Abou Lam, is transferring ownership of assets to BIMAO as full settlement of this outstanding balance. The specifics of these assets haven’t been publicly detailed, but the arrangement signifies a significant transfer of property to the bank.
This case surfaces against a broader backdrop of concerns regarding debt management and financial transparency in Senegal. Recent reports have highlighted billions of dollars in previously undisclosed debt within the country, posing challenges for the International Monetary Fund and the Senegalese economy. While this specific case concerns a private debt, it underscores the potential for opaque financial dealings and the risks associated with collateralized lending.
The involvement of Mbaye Dione, the Director of BIMAO, also draws attention. Syndicates of the Credit Mutuel du Senegal (CMS), BIMAO’s parent company, have questioned the circumstances surrounding Dione’s appointment, alleging irregularities linked to the previous administration which ended on . These allegations suggest potential issues with governance and appointment processes within the banking sector.
a separate dispute involving land titles and mortgages – the case of S. C. Mbaye and M. Ndiaye – highlights the vulnerabilities within Senegal’s financial practices. In that instance, a land title was allegedly used to secure multiple loans, raising concerns about the exploitation of collateral and the adequacy of mortgage management. The Mbaye-Ndiaye case involved a 2-hectare plot in Mbodiène and revealed a situation where an entrepreneur’s land was leveraged for a loan significantly larger than the initial agreement.
The legal framework governing enforcement in Senegal is outlined in the Civil Procedure Code, specifically Articles 787 to 792. This provides the legal basis for BIMAO to enforce its mortgage and recover the debt owed by Elimane Lam. The successful homologation of the agreement by the Dakar Commercial Court demonstrates the functionality of this legal framework, although the underlying concerns about transparency and potential misconduct remain.
The resolution of the BIMAO-Lam dispute, while a positive step for the bank in recovering its funds, serves as a microcosm of broader financial challenges facing Senegal. The combination of hidden debt, questionable appointments, and disputes over collateralized assets points to a need for greater oversight and improved governance within the country’s financial institutions. The case also underscores the importance of due diligence in lending practices and the potential risks associated with relying solely on land titles as security.
The situation at BIMAO and the wider concerns about financial practices in Senegal will likely be closely monitored by international financial institutions and investors. The ability of the Senegalese government to address these issues and restore confidence in its financial system will be crucial for attracting foreign investment and ensuring sustainable economic growth.
