The BIAC affair, which has shaken the Congolese financial world in recent years, has just experienced a new twist. Michel Losembe, the former managing director of this financial institution, saw his legal file closed without further action, marking the end of a complex investigation. This decision is a real relief for Losembe, who had been accused by the Congolese Central Bank (BCC) of “violation of Law No. 003/2002 of February 2, 2002 relating to the activity and control of credit institutions”. The case, which implicated other bank executives, opened a dark chapter for BIAC, which is currently being liquidated.
It is in a correspondence signed by Firmin Mvonde Mambu, Attorney General at the Court of Cassation of the DRC, that we learned the news on April 12, 2023. This decision puts an end to a very complex investigation which lasted several years. and which aroused strong reactions in the Congolese financial world.
The BIAC case was cause for concern. This financial institution is one of the most influential in the Democratic Republic of Congo, and one of the most important as well. The situation it has experienced in recent years bears witness to the challenges that await financial institutions in this region of the world. Indeed, the bank experienced a tumultuous period following the suspension of a refinancing line of 40 billion Congolese francs usually provided by the Central Bank. This suspension, which lasted a few months, had very negative repercussions on the financial health of the bank and contributed to a crisis of confidence which scared away depositors.
Today, the court decision announced on April 12, 2023 allows Michel Losembe to draw a line under a very trying period of his career and to see the future more serenely. But it also raises many questions about the BIAC case as a whole. Indeed, bank depositors and employees, who have been waiting for a fair resolution to their situation since 2016, continue to expect clear answers. At the end of 2016, BIAC’s shareholders had decided to liquidate it, a resolution that the Central Bank had contested. This decision was taken without the intervention of the provisional administration and the regulatory and banking supervisory authorities in charge of BIAC’s recovery.
Faced with this situation, the Congolese government took steps to resolve the liquidation of BIAC. In February 2023, he pledged to repay depositors up to at least $121.5 million, a decision that is reassuring for the parties involved. But is this decision enough to ease tensions? For now, the question remains unanswered..
The BIAC case has highlighted the challenges faced by financial institutions in DR Congo and the need for good governance in the banking sector. This is a case that shook the Congolese financial world and took several years to conclude. Today, BIAC’s future is uncertain, but the entire profession must learn from this history to avoid further disasters.