SUBSCRIPTION TO CAPITAL SHARES : Cosumaf Warns Against Illegal Operation
The president of the Central African Financial Market Surveillance Commission (Cosumaf), Jacqueline Adiaba-Nkembe have denounced an initiative made by the Health Microinsurance “Munasaili”, to subscribe for shares in the share capital, which promises certain gains over a period of one year to three years. She denounces this action in a document signed on October 19, 2023.
Cosumaf recalls that the public offering operation initiated by the health microinsurance is illegal saying that, « the placement of financial instruments (shares, bonds, etc.) in the public, to invite subscribers to said instruments, is subject to the issuance of prior approval. Neither the notaries nor the Munasaili structure appear on the list of organizations approved by Cosumaf and authorized to provide the service of placement of securities issued by public offering ».
The regulator justifies that this operation is in violation of the provisions on public offerings provided for in Regulation N°01/22/CEMAC/UMAC/CM/COSUMAF of July 21, 2022 and in the General Regulations of Cosumaf. Therefore, it indicates that it has referred the matter to the competent judicial authorities to have adequate measures imposed by said non-compliance taken. Which implies, according to Cosumaf, the monetary penalties provided for in Articles 264 of the Regulation mentioned above, without prejudice to the applicable criminal provisions.
Finally, Cosumaf invites the public and investors to « urgently refrain from subscribing to any securities offered by Munasaili, the digital health mutual, while waiting to be informed about the judicial and administrative consequences that will be reserved for this case. Cosumaf takes this opportunity to recall the risks inherent in public offering operations and the need for savers and investors to exercise caution and to ensure, in all circumstances, before any subscription of securities, to ensure the compliance of the operation, which requires the granting of a visa from the regulator and the intervention of authorized professionals for the placement of securities, namely stock exchange companies and banks », concludes Jacqueline Nkembe.
Contacted, Munasaili rejects the regulator’s alert and contrary to the words of Cosumaf which affirms that the structure « has carried out publications and distribution of prospectuses, which invite to subscribe for shares in its share capital », Jacques Manga Songo, one of the promoters, explains that « we are not making a public offering, but have communicated mainly in our private circles on whatsapp regarding subscriptions. I don’t know why J considers it a public tender offer », he said indignantly. He then states that the call for subscriptions was not communicated in any paper, radio or TV media. « When we talk about a public offering, it appears in the newspapers and here it is not the case. We have only made communications in our private networks to co-opt our friends to come and invest in it », he continues, adding that the manager and shareholders are to hold a crisis meeting this October 25, 2023.
Munasaili is a microinsurance company co-developed by iLink World Corporation and Sogecar, an insurance broker in Cameroon. The capital of this authorized limited liability company (or simple limited partnership) is 500 million FCFA.
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