Senegalese Cooperative Faces Foreclosure as Members Cry Foul
A multi-million dollar land deal has sparked controversy and allegations of financial mismanagement within the Multifunctional Cooperative of ARTP Agents (COMAART) in Senegal. An advertisement by Banque de l’Habitat du Sénégal (BHS) reveals that the cooperative’s 7,500 square meter plot of land in Ouakam will be auctioned off on December 10, 2024.
Loan Defaults and Mounting Debt
The land, valued at 4.5 billion FCFA, is being auctioned off after COMAART defaulted on a 2.25 billion FCFA loan from BHS. The loan agreement, signed in December 2020 and February 2021, stipulated the land as collateral. Leaders of the cooperative claim that the principal amount of the loan has been paid off. BHS initiated foreclosure proceedings citing late payments and accruing fees. The auction price is set at 1.125 billion FCFA, drastically lower than the land’s estimated value.
Opaque Management and Unanswered Questions
In an attempt to quell the growing discontent among its members, COMAART released a statement asserting that the land won’t be lost completely. “The said building was mortgaged as security for a loan taken out from the BHS. However, the principal was repaid in full. Late payments that have generated additional costs are being regularized, in partnership with the competent services,” the statement explained. While the cooperative claims to be resolving the payment issues, members remain skeptical, citing a lack of transparency in the past six years. Many members have repeatedly requested financial reports but haven’t received them. These reports, they say, are critical to understand how the cooperative has managed its finances.
Land Purchase Under Scrutiny
Adding further fuel to the fire is the purchase of the land itself for 2.5 billion FCFA, a figure that has come under intense scrutiny. Last May, activist Guy Marius Sagna raised concerns about questionable financial practices within COMAART, specifically regarding the land acquisition. “The board of directors, whose mandate expired two years ago, engages the cooperative in questionable real estate acquisitions, with subsidies of unknown origin. Where did these billions go?” Sagna questioned.
Call for Accountability and Transparency
Since October 2024, the cooperative’s auditors’ report, which could shed light on the situation, has been available. However, the report has yet to be shared with members, breeding a climate of distrust and speculation. The autonomous nature of the cooperative, combined with the lack of financial transparency, creates fertile ground for suspicions. The affair, riddled with unanswered questions, is being closely watched. Many are now calling for greater accountability and transparency from COMAART’s leadership. Some members have even suggested that a written inquiry should be addressed to the relevant minister in the coming days to investigate the matter further.
What are the broader implications for transparency and accountability within cooperatives in light of this situation?
## Interview: Senegalese Cooperative Faces Foreclosure
**Host:** Welcome back to the show. We’re discussing the ongoing controversy surrounding the Multifunctional Cooperative of ARTP Agents (COMAART) in Senegal, which is facing the imminent auction of a valuable plot of land. Joining us today is [Guest Name], an expert in cooperative law and finance. Welcome to the programme.
**Guest:** Thank you for having me. This is a complex situation with serious implications.
**Host:** Let’s start with the basics. COMAART is facing foreclosure on a piece of land valued at 4.5 billion FCFA, correct?
**Guest:** Yes, that’s correct. Their land in Ouakam is scheduled to be auctioned off on December 10th after COMAART defaulted on a 2.25 billion FCFA loan from Banque de l’Habitat du Sénégal (BHS).
**Host:** And yet, COMAART leaders claim the principal sum has already been repaid. What gives?
**Guest:** That’s where things get murky. While COMAART claims the principal was repaid, BHS initiated foreclosure proceedings citing late payments and accumulating fees. This suggests there might be discrepancies in how the loan agreement was interpreted or executed.
**Host:** The auction price is significantly lower than the land’s estimated value. Does this raise concerns about fairness?
**Guest:** Absolutely. An auction price of 1.125 billion FCFA, less than a quarter of the estimated value, raises serious questions. This disparity could indicate an attempt to acquire the land at a bargain price, potentially exploiting the cooperative’s financial difficulties.
**Host:** COMAART members are understandably concerned about the potential loss of this valuable asset. What are their options at this stage?
**Guest:** Legally, they can challenge the foreclosure proceedings. They could argue that BHS acted unjustly or that there were irregularities in the loan agreement.
But they will need strong legal representation and compelling evidence to overturn this process at such a late stage.
**Host:** This situation raises broader concerns about transparency and accountability within cooperatives like COMAART.
**Guest:** That’s right. Opaque management practices, lack of communication with members, and unclear financial reporting can breed mistrust and ultimately lead to these kinds of crises. Cooperatives need robust governance structures and transparent financial practices to protect both member interests and the cooperative’s long-term sustainability.
**Host:** We’ll continue to follow this developing story closely.
[Guest name], thank you for shedding light on this important issue.
