PRESS RELEASE
Yaoundé, Wednesday, January 11, 2023
Press Release
OLEMBE SPORTS COMPLEX COMPLETION PROJECT - MAGIL DENOUNCES THE UNFOUNDED ATTACKS AND RESTATES ITS COMMITMENT TO THE STATE OF CAMEROON
While discussions have been at a standstill for several months, Magil Construction Corporation participated, on January 10, 2023, in Yaoundé, in several meetings with the highest authorities concerning the construction of the Olembe sports complex. As part of the desired process for an amicable settlement, these meetings were an opportunity for the company to reassure the Government on its commitment but also to alert it to the inherent difficulties in the project: the contractual failures of the Ministry of Sports and Physical Education of Cameroon (MINSEP) which contribute to jeopardize the project.
With more than 75 years of expertise, Magil Construction, a subsidiary of the Fayolle Group, is a Canadian construction company with an international scope, carrying out infrastructure projects in the industrial, commercial, residential and institutional sectors, particularly in Canada, the Caribbean, South America, Africa and Asia.
Present in Cameroon since 2017, Magil Construction Corporation has been accompanying the State on several projects such as the rehabilitation of the National Road 3 (RN3) in Douala, the rehabilitation of the Reunification Stadium in Douala and the construction of the Olembe Sports Complex in Yaoundé. Nevertheless, the construction of the latter is facing many difficulties related to its execution.
Thus, while a contract for the provision of professional services (EPCM) has bound MINSEP and MAGIL Construction Corporation since January 3, 2020, in order to accompany the Ministry in the execution of the work following the departure of the company GRUPPO PICCINI, the contractual failures of MINSEP contribute to jeopardize the project. At the beginning of 2023, MAGIL and the stadium's subcontractors have not received any payment of their invoices settled and validated by MINSEP since July 2021, placing many subcontractors in a de facto situation of financial asphyxiation. This non-payment of invoices has been accompanied, in addition to the non-renewal of tax and customs exemptions related to the project, by the discovery of numerous structural defects on the stadium and requests for additional work increasing the total construction budget.
Aware of the objective to be reached and the importance of this sports complex, emblem of the country which made the pride of Cameroonians during the African Cup of Nations (ACN), Magil Construction Corporation has initiated steps to find a conciliation path for the proper execution of this project with the establishment of mechanisms for amicable settlement with the MINSEP on April 12, 2022 followed by a Conciliation Committee on August 23, 2022. Subsequently, multiple correspondences sent to the Ministry remained without follow-up.
In fact, MAGIL Construction Corporation, after having exhausted all avenues of recourse and initiated all mechanisms of amicable settlement, found itself obliged, on December 5, 2022, to give MINSEP formal notice to regularize its obligations within 30 days to avoid the termination of the main contract and its arbitration. This correspondence also remained unanswered. However, it was the subject of a letter to the Prime Minister's Secretariat containing erroneous and slanderous information, transmitted to the media and altering the image of Magil Construction Corporation and its employees.
Magil Construction Corporation, engaged in a conciliation process called for by its wishes, took part in various meetings on January 10, 2023 - in the presence of several government representatives. The company would like to remind everyone that it has not abandoned the Olembé site and wishes to complete this major project, provided that the project owner respects its obligations.
Franck Mathière, Executive Vice President of Magil Construction Corporation said "We are proud to have provided our expertise and contribution on this iconic project. As a long-standing partner, we reiterate our commitment to the State of Cameroon and look forward to the respect of the provisions of the signed contract and in particular the payment of the subcontractors who have worked tirelessly for the success of the ACN and contributed to the country's reputation on the international scene.
About Magil Construction:
Magil Construction is a Canadian construction company carrying out infrastructure projects in the industrial, commercial, residential and institutional sectors. A subsidiary of the Fayolle Group, its mission is to respond to the challenges of the construction industry through innovation, creativity and best practices in order to provide solutions adapted to the needs of its clients in the implementation of their projects. This mission is carried out while maintaining the highest standards of quality and sustainable development, with more than 1,000 employees around the world.
With an international scope, it carries out projects in Canada, the Caribbean, South America, Africa and Asia, providing its clients with
- Great expertise in integrated teams;
- Approach and systems that facilitate multi-entity collaboration;
- Ability to contribute to all stages of a project, including studies and the search for financing with renowned international financial partners.
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