President Paul Biya has reportedly put the privatisation of the Cameroon Airlines, CAMAIR on hold.The Post gathered that an American company has made a better offer than SN Brussels Airlines of Belgium who came through First Delta Air Services.

In a communiqué published in the national bilingual daily, Cameroon Tribune, on June 30, the Minister of Economy and Finance, Polycarpe Abah Abah, had stated: "The Government is pleased to announce the selection of First Delta Air Services, a

consortium comprising SN Brussels Airlines of Belgium and CENANVEST, a Cameroonian venture capital fund, as Provisional winning bidders for the purchase of 51 percent of the shares in the new airline being created to replace CAMAIR as the national airline of Cameroon".

The Minister had, in the communiqué, noted that the selection, which he claimed was done by the competent institutions in place, followed their diligent examination of bids, which were submitted by three companies namely, Royal Air Maroc, Kenya Airways, and SN Brussels Airlines, by the time the deadline expired.

The Minister's communiqué had disclosed that, "The government and First Delta Air Services are expected to sign the transaction documents within ten business days, and will work together to finalise other legal and operational arrangements for the launch of the new airline in the coming days."

More than two months after the Minister's communiqué, the government and First Delta Air Services have neither signed the transaction document, which was supposed to be done within ten business days, nor has the Minister officially advanced any reason for the delay.

At the office of SN Brussels at Bonapriso in Douala, the authorities said the consortium is still putting together the necessary documents. At the headquarters of CAMAIR at Bonanjo, Douala, the authorities too, are not saying anything.

A French language weekly, La Détente Libre, had in its edition of August 16, reported that an American group had come in late into the scene of the privatisation process of CAMAIR and created problems.

The paper had reported that the American group which did not indicate its interest when the Cameroon government asked for bids from interested companies, was lobbying through some highly placed people in government circles like the Prime Minister, Ephraim Inoni, to be selected as the majority shareholder in the new national airline company that would replace CAMAIR.

On September 8, a source in the Ministry of Economy and Finance in Yaounde whom The Post contacted by telephone, confirmed that an American group has indicated its interest in taking over CAMAIR.

The source admitted that the American group came to the scene late, and that its arrival has sparked confusion in the privatisation process, as it is making a better offer to government compared to what SN Brussels is offering.

The Post gathered that the issue has caused a split among senior government officials involved in the CAMAIR privatisation. There is said to be a camp headed by the Minister of Economy and Finance, which is insisting that the government should maintain the SN Brussels-led consortium which had already been officially selected, while another camp

said to be headed by the Prime Minister, Chief Ephraim Inoni, is said to be arguing that rationality recommends that the government should instead select the American group which is making a better offer. Abah Abah's camp is quoted as further arguing that the dropping of the SN Brussels consortium at this stage in favour of the American company, will present a very bad image to the world about Cameroon's privatisation process.

But the Inoni camp is said to argue that the government has so far, not yet signed the transaction documents with the consortium, and that there is nothing like Cameroon's breach of an agreement with the consortium.

The Post has learnt that it is in the face of the above development, that President Biya is reported to be personally examining the issue with his close advisers, and will have to take the final decision as to whether the government should go ahead with the SN Brussels consortium, or discard the earlier decision and go in for the American group.