The case against the former Director General of the International Bank for Africa in Congo (BIAC) has been dismissed.
Michel Losembe, former Director General of the International Bank for Africa in Congo (BIAC), can breathe a sigh of relief. After several years of investigation, the complaint lodged by the Central Bank of Congo (BCC), which accused the BIAC directors of mismanagement and violation of the law on credit institutions, has been dismissed.
On 12 April, Valéry Giscard Mubiala Malela of DALDEWOLF RDC, Michel Losembe’s lawyer, was notified by Firmin Mvonde Mambu, the Attorney General of the Court of Cassation of the DRC.
This decision officially closes the case and “completely exonerates” Michel Losembe, who has always maintained his innocence.
In 2016, BCC filed a complaint against the directors and former directors of BIAC for “violation of Law No. 003/2002 of 2 February 2002 on the activity and control of credit institutions.”
The defendants, including Mr Losembe, were suspected of having committed “acts of mismanagement that led to the bankruptcy of BIAC.”
The case caused a stir in the Congolese financial community, as BIAC is one of the country’s largest banks, with more than 400,000 accounts at the end of 2015, a balance sheet total of 511 billion Congolese francs (around €498 million) and total deposits of 399.7 billion Congolese francs.
According to BIAC managers, the crisis was triggered by the sudden suspension of the BCC’s refinancing line to their bank as part of a tightening of monetary policy to restore the strength of the local currency.
This measure led to “temporary operational difficulties” and “liquidity tensions” at BIAC. At the time, BIAC benefited from refinancing from the BCC capped at 40 billion Congolese francs (€37.5 million at the time) until February 2016, but this support was “abruptly suspended.”
Faced with a liquidity crisis, the Congolese bank was unable to repay its customers’ deposits and was placed under provisional administration. It was against this background that the BCC filed its complaint, accusing BIAC’s management of mismanagement and violation of the law on credit institutions.
BIAC’s assets have not yet been liquidated. In February 2023, the Congolese government undertook to take all necessary measures to repay the deposits.
ARD/ac/lb/as/APA