SAR - LOCAFRIQUE designated sacrificial lamb
Dakar, 28, December 2021: "He who wants to drown his dog accuses him of rabies". This assertion has never been more true than in the treatment of the shareholder LOCAFRIQUE (www.LocAfrique-sf.com) (34%) in the strong recapitalization of 420 billion CFA francs of the African Refining Company (SAR), which it considers unnecessary since the said company was created by the visionary President Léopold Sédar Senghor in 1961 has 440 million euros or 288 billion CFA francs to cope with the turbulence
Petroleum - Summoned by the SAR and PETROSEN HOLDING SA majority shareholder of the SAR (46%) for a hearing before the judge of the Commercial Court this Wednesday, December 15, is a textbook case if we refer to the indiscretions made, both the treatment of the case and the inconsistencies noted leave whole questions about the management of the SAR.
In view of the enormous losses noted, there is much to be said and said again about the management of this jewel that the first Senegalese president had the intelligence to put in place, when oil was barely discussed in Senegal. Senghor knew and had warned accordingly, leaving it to the succession to make good use of it. At a time when the exploitation of oil and gas is announced in the next two or three years, questions may arise about the appetites and conduct of the SAR.
Agitated and desired by the majority shareholder, the recapitalization of the SAR at a cost of several hundred billion CFA francs is not justified insofar as there are faster and more effective ways to bail out the SAR and put its shareholders and the State at ease through the revaluation of assets, in accordance with the principles of the Organization for the Harmonization of Business Law in Africa (OHADA). So why do you want this recapitalization at all costs?
Another question is that, since the dispute is not about LOCAFRIQUE's opposition to the recapitalization of the SAR, why are they trying to exclude it from voting on the resolution of this recapitalization, by having it replaced by a third party or ad hoc representative to be more precise, in order to represent it at the next extraordinary general assembly on the grounds that it will have shown abuse of minority rights?
This question can be understood, especially since if the State decides, as it is said behind the scenes, to inject 350 billion into the SAR even if it only needs 60 billion to recover, LOCAFRIQUE has decided to immediately and unconditionally fold. It cannot do otherwise in the face of the State's declared will after having done the most difficult thing, i.e. mobilizing nearly 300 million euros to finance the SAR's imports at a time when its coffers were in the red and therefore unable to benefit from the confidence of its financial partners and suppliers. It is even said that LOCAFRIQUE has largely contributed to cushioning the financial shocks in 2021 so that the African Refining Company can make profitable margins.
Going back to SAR's losses and therefore its management, one might wonder whether the refining company is not suffering more from poor procurement practices. One still remembers the poor quality of fuel that had been strongly debated in the public arena. In any case, the debts are heavy, we are talking about 75 billion CFA francs and losses of about 59 billion CFA francs. Not to mention the order of white goods estimated at more than 300 million euros, or about 200 billion CFA francs placed without tenders and it is still said to be without the knowledge and authorization of the Board of Directors. Practices to say the least opaque that can only suggest that they are not without damaging consequences on the economic and financial plan of this SAR that was so dear to Senghor.
Distributed by APO Group on behalf of LocaAfrique
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