Construction Works at the Olembe Stadium has been withheld till further notice.This follows tension that has been existing between the Ministry of Sports and Physical Education and MAGIL Construction.
On January 6th, the Ministry of Sports and Physical education accused MAGIL of Embezzling 42 billion including 38 billion from pre-guaranteed loan and 4 billion from the Government bridge loan, without completing works at the stadium.
The Minister of sports and physical education in the correspondent said MAGIL tried to blackmail the government by frequently halting works and demanding huge sums of money to be disbursed before work is done.
MAGIL on their part accused the government of the non- payment of invoices dating back to June 2021 and breaching contractual Commitments in their press release.
“MAGIL Construction Corporation, after having exhausted all remedies and initiated amicable settlement mechanisms, found itself forced, on December 5, 2022, to give notice to MINSEP to regularize its obligations within 30 days to avoid the termination of the main contract and its arbitration. “Press release MAGIL construction.
In an effort to amicable settle the disputes between both partners,
On January 10, 2023, Franck Mathière, Executive Vice-President of the public works company, met with members of the Cameroonian government and MAGIL Construction.
During the meeting, Cyrill Tollo,the management expert instructed MAGIL to give account of how the money embezzled was handled.
“MAGIL justifies what the 42 billion it holds here has been used for, because we believe that there is a distortion between the level of budgets consumed and the level of work.
” MAGIL has also been asked, to take up the payments to complete the shopping center and the hotel since these two infrastructures are in an unsatisfactory state”.
“MAGIL was asked to start the works of the second phase; the construction of the gymnasium, swimming pool, tennis courts.”Says Cyrille Tollo the management expert in an interview by Africa 24.
The construction of the Olembe complex now stands at 250 billion FCFA instead of 155 billion FCFA as initially planned.