DEBT COLLECTION : SRC Records Over 1 billion Losses in 2022
The Cameroon Debt Recovery Company, in it’s French abbreviation SRC closed the 2022 financial year on the red after a relatively stable year. According to the data published at the end of the General Assembly held on August 23, the state entity achieved a negative net result of more than 1 billion down by 3,746 %, or 974 million FCFA compared to 2021, when it posted profits of 26 million FCFA.
Over the past three years, this is the largest loss recorded by the public company, more than 86 million FCFA in 2019, less 619 million FCFA in 2020 and more than 26 million in 2021. The Board decided to postpone again, the loss-making net result, which contributed to the erosion of the structure’s own funds going from 5.9 billion FCFA in 2021 to 5.2 billion FCFA last year. The SRC does not give the reasons for these losses. However, they could be explained by a decrease In activities during the period under review, despite the extension of its powers.
Indeed, the SRC is still struggling to achieve its recovery objectives although its scope of action has been expanded. According to the 2020 Technical Rehabilitation Commission’s report, the volume of receivables collected during this financial year is 4.6 billion FCFA against a starting target of 6.6 billion FCFA. Year-on-year, this amount is also down by 25 %. However, in 2021, the SRC collections experienced an increase of 39.45 %.
According to experts, this counter performance brings the question of the profitability of public companies up to date. Indeed, involvement in the production sector and this in all sectors of activity (primary, secondary and tertiary) does not always bring good luck to the State whose entities are not sufficiently profitable. They chain records loses that impact the state’s budget through recapitalizations, rehabilitations and various supports.
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It was In 2020 that the President of the Republic invested this entity with the prerogatives of public power, with the task exercise of requisition and investigation powers. In this sense, the privileges of the Treasury which are recognized to it have been reinforced, as well as the protection of the holders of constraints and the managers of the consecrated SRC. Since then, she has been able to use public force, access all databases, buildings, premises and properties of debtors.
In its financial intermediation activity, the SRC currently manages a debt portfolio of about 800 billion FCFA divided between 20 banking and non-banking entities and classified into three different legal statuses namely : 5 closed liquidations, 5 non-closed liquidations, and 10 recovery mandates on behalf of Cameroon’s State.
SN
