The Congolese financial sector has experienced tumultuous events in recent years, particularly with the BIAC affair which has just experienced a new development. Michel Losembe, former director general of BIAC, recently saw his legal case closed, marking the end of a complex investigation which accused him of financial embezzlement. This decision represents a rehabilitation for Losembe, who has always denied the charges against him.
BIAC, one of the most influential banks in DR Congo with more than 400,000 accounts at the end of 2015, has had a tumultuous period. Following the suspension of a refinancing line of 40 billion Congolese francs, usually provided by the Central Bank, the financial health of the bank was seriously affected, which led to a crisis of confidence and a rush of depositors. . In the end, BIAC’s shareholders decided on its liquidation at the end of 2016, a resolution that the Central Bank had contested.
February 2023, the Congolese government announced substantial measures to resolve the liquidation of BIAC, in particular the reimbursement of depositors to the tune of at least $121.5 million and the search for an equitable solution for families, employees and aggrieved applicants. However, these measures have yet to be implemented.
This case highlighted the challenges faced by DR Congo’s financial institutions and the need for good governance in the banking sector. The Congolese government must continue to work to ensure that such events do not happen again.
In conclusion, the end of the investigation into Michel Losembe marks the start of a new chapter for the former CEO of BIAC, but the resolution of the bank’s liquidation is still a major issue in DR Congo.