Cameroon

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General Context

The Republic of Cameroon - La République du Cameroun is a unitary democratic republic of central and western Africa with a multiparty presidential regime. At 475,440 square kilometers (183,563 sq mi) it is the world's 53rd largest country. Cameroon's coastline lies on the Bight of Bonny, part of the Gulf of Guinea and the Atlantic Ocean. It is bordered by Nigeria to the west; Chad to the northeast; the Central African Republic to the east; and Equatorial Guinea, Gabon, and the Republic of the Congo to the south. Cameroon has a population of over 18 million [1]. The official languages are French and English. The main religions include; Indigenous beliefs 40%, Christian 40% and Muslim 20%. A former French and English colony, Cameroon’s dual legal system is reflective of its colonial heritage.

Political Structure and Legal System

Civil and common law are applicable throughout the territory where relevant with civil law being predominant in a realistic reflection of the approximately 80% Francophone to 20% Anglophone ratio of the country’s population and administrative provinces. Sources of law include: the Constitution which is the supreme law of the country and has as its preamble the Human rights Charter; common law; parts of the Napoleonic code; customary laws (as long as such do not go against national laws); and judicial precedents. The main institutions are the executive, legislative and judiciary authorities: The presidency represents the executive power- the president is elected by popular vote for a seven year renewable term. The National Assembly is responsible for legislation and the president of the National Assembly is the second in command to the President of the republic. The Prime Minister or head of government is appointed by the president and the government is divided into administrative institutions known as ministries. The judiciary is represented by the highest court which is the Supreme Court. It is independent of both the Executive and the Legislature and comprises three divisions. It also forms part of the ministry of justice.

Regulation of Alternative Dispute Resolution

For a country considered an oasis of peace and stability and also boasting one of the best primary commodity endowed economies in conflict torn sub-Saharan Africa, Cameroon should be a third world safe haven and major attraction for much needed foreign investment. However the capacity of foreign investment which plays an important role in the country’s economy is otherwise limited by lack of trust and confidence in the country’s dispute resolution mechanisms. While Cameroon has model laws, there are several hurdles at the level of enforcement and execution and the system is plagued by complains of unfair judgments, unreasonably lengthy proceedings and poor execution of foreign judgments due to excessive corruption and bureaucracy. The regulatory framework includes Articles 3 and 4 of the code of civil and commercial procedure, which requires conciliation as the first step to resolving disputes. However, litigation is still the major form of dispute resolution since ADR mechanisms are still relatively new and not well established. Of all the ADR mechanisms, the most used and regulated by national and international law is arbitration. Cameroon has adopted the OHADA[2] Uniform Act on Arbitration and is also a party to ICSID (Interntional Centre for Settlement of Investment Disputes). Cameroon has eight neutrals (four arbitrators and four conciliators) on the ICSID Panel of Arbitrators and Conciliators.

National laws[3] have designated the competent courts mentioned in the OHADA Uniform Act on arbitration and have established the conditions for referring matters to them.

In line with legislation the competent institutions for the enforcement of arbitration mechanisms and awards are the courts of first instance and court of appeal [4]. Foreign arbitral awards area res judicata may be recognised and enforced in Cameroon through an exequatur order by a competent judge [5].

Practice of Alternative Dispute Resolution

It is normal practice for the government of Cameroon and commercial institutions to use both arbitration and mediation; individuals are seen are more likely to use mediation and conciliation to resolve labour and family disputes.

Arbitration

“ The number of cases decided although lower than expected is increasing due to communication and educational seminars on the subject. ”

The procedure for arbitration agreements between parties is laid out in chapters two – four of the OHADA Uniform Act on Arbitration. The regional court for the OHADA countries is the common court of justice and arbitration located in Abidjan - Ivory Coast. There is also the Council of Business Managers and Professional Associations of Cameroon or le Groupement Inter-Patronal du Cameroun (GICAM) Arbitration Centre established to ensure quality alternative dispute resolution in the business sector. GICAM is a professional association that represents almost 80% of the commercial enterprises existing in Cameroon. Based in Douala, the GICAM arbitration centre provides arbitration services to enterprises and individuals in Cameroon and across the Central African region. The number of cases decided although lower than expected is increasing due to communication and educational seminars on the subject. GICAM has been active in holding ADR seminars for judges, arbitrators, commercial operators and lawyers.

Conciliation

Apart from arbitration, conciliation is also fairly popular. The OHADA code encourages conciliation [6] as a first step to dispute resolution between relevant parties, hence sometimes limiting litigation to instances of failed conciliation attempts. Conciliation and arbitration are accepted as dispute settlement mechanisms for collective employment disputes according to the 1992 Labour Code [7] , and any agreement reached by conciliation is enforceable in line with section 139 of the code. Arbitration is used in cases where attempts at reaching an agreement through conciliation prove futile. The procedures on conciliation and arbitration are laid out in Sections 158 to 165.

International Organizations, Agreements and Treaties

Cameroon supports and is a member of several international organizations and is also a signatory to a number of treaties, all of which provide guidance as well as formal procedures to be followed in the event of an ADR dispute. Cameroon is a signatory to the IV Lomé Convention as revised in Mauritius on 4 November 1995 and the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Cameroon ratified the New York Convention in February 1988 and it entered into force in May the same year. Other industry guidelines include the 1998 International Chamber of Commerce Arbitration Rules. There are also ad hoc and institutional arbitration mechanisms based on international instruments, such as the United Nations Commission on International Trade Law (UNCITRAL) Arbitration Rules. Cameroon has held seminars conducted by the International Development Law Organization (IDLO), and is a member of the World Trade Organization (WTO), International Labour Organization (ILO) and Economic and Monetary Community of Central Africa (CEMAC).

Institutions which offer ADR Services

Private law firms in Cameroon practice arbitration, mediation and conciliation on an ad hoc basis and some have had a degree of success in resolving disputes between the government and private sector enterprises.

The Practice of ADR in Specific Industries

Cameroon is a signatory to the Inter-African Conference on Insurance Markets (CIMA) Code, which also encourages conciliation as a first step to dispute resolution. The Economic Community of West African States' (ECOWAS) Energy Protocol sets out the procedure for settling disputes between investors and contracting parties in this sector. It provides for disputes between investors and contracting parties to be submitted to a number of other international organizations should the parties so choose, for example, to ICSID, an arbitral proceeding under OHADA or an ad hoc tribunal established under UNCITRAL. For disputes between contracting parties themselves, the Protocol provides for either party to the dispute upon written notice to the other party to submit the matter to an ad hoc tribunal established under the Protocol. The CTO (Commonwealth Telecommunications Organization) Council adopted a Protocol setting up the CTO Alternate Dispute Resolution Centre in 2005 in Yaounde, Cameroon. This initiative was a response to the growing number of disputes between commercial operators and sometimes between governments and operators in CTO member countries. Several telecommunications regulators in CTO member countries have made ADR the principal method for resolving disputes, although it is unclear whether Cameroon is one of the countries which has implemented this policy.

The Social and Environmental Regulation of Business

Human Rights

All fundamental human rights and freedoms are constitutionally protected [8]. Employment and working conditions are also regulated by the 1992 Labour code [9], which provides for a minimum age to work [10], maximum working hours [11], freedom of association and the right to strike [12], protection against forced labour [13], discrimination for remuneration [14], unfair discrimination on the basis of trade union activities [15]. However the code is not applicable to all employment sectors [16]. Despite all the provisions there are still instances of human rights abuse, in the form of child labour [17] and repressed or limited rights to trade union association and activities [18]. Also in the OHADA Uniform Act organizing collective procedures for writing off debts, in case of bankruptcy, claims from company employees and apprentices are guaranteed over other secured and unsecured claims due to a preferential right to wages [19].

Environmental Impact

Acts by individuals or companies which could prove hazardous to the environment are punishable by law in Cameroon. The penal code criminalises alimentary adulteration [20], cruelty to animals [21] etc. Apart from the penal code there are other laws specifically geared at environmental protection. These include; Law No 94/01 of 20th January 1994 to lay down Forestry wildlife and Fishery Regulations, Law No 96/12 of 5th August 1996 relating to Environmental Management, The Mining Code, and Law No 2003/006 of 21st April 2003 to lay down regulations governing modern biotechnology in Cameroon (enacted to give effect to the Cartagena Protocol on Biosafety). All of these tackle pertinent environmental protection issues and provide criminal sanctions and penalties for violations.

The ECOWAS Protocol provides a framework for assessing and dealing with the impact on the environment of energy sector projects. Contracting parties should attempt to minimize in an economically efficient manner harmful environmental impacts occurring either within or outside their region, taking proper account of safety. In its policies and actions each contracting party should also take precautionary measures to prevent or minimize environmental degradation.

Consumer Protection

Cameroon legislation offers very little protection for consumers, and consumer protection is dependent on product liability, sale of goods, and contract laws. In terms of promoting fair trade and commercial treatment several commercial laws exist which generally regulate relations between companies and stakeholders and customers including the OHADA Uniform Acts. Competition and market regulation is based on Law No 90/03 of 10 September 1990; and others include Conférence Interafricaine des Marchés d’Assurances (CIMA) or Inter-African Conference on Insurance Markets treaty; and the African Intellectual Property Organization (AIPO) Bangui Agreement on the protection of intellectual property rights.

The Chad-Cameroon investment project

The Chad-Cameroon pipeline investment project is a US$ 4.2 billion Chad-Cameroon Oil Development and Pipeline Project and is one of the largest private sector investments in sub-Saharan Africa. On July 1st 2000, the governments of Chad and Cameroon signed an agreement with the World Bank and a consortium of trans-national companies to construct a pipeline from Chad across Cameroon to the Atlantic coast. Three institutions of the World Bank Group – IDA, IBRD and IFC - have provided over $ 300 million in loans. The Construction began in August 2000 and was completed in June 2003, a full year ahead of schedule. The consortium led by the US Company ExxonMobil (40 %), also includes Chevron, which is another US corporation and Petronas the Malaysian state oil company. It is supported by the World Bank and the European Investment Bank. One of the major objectives of the project was to demonstrate that large scale crude oil projects, when designed to ensure transparency and effective environmental and social mitigation, can significantly improve prospects for sustainable long term development. Apart from being a massive oil production venture, the project was supposed to be of immense benefit to the relevant communities.

In view of prospective CSR issues which could arise in relation to the project, Exxon initially proceeded through a multiparty commission created to handle grievances in relation to the project. This commission was made up of government officials, village chiefs, traditional authorities, Exxon representatives and two NGOs selected through a competitive bidding process. Exxon in line with its responsibility to set up grievance mechanisms also organised a public consultation process along the pipeline route to handle compensation claims. In furtherance of Exxon’s multi-stakeholder approach in Cameroon, the Wildlife Conservation Society and the governments of West Africa collaborated with Exxon on an impact assessment project with major focus on environmental aspects. As a result of this dialogue, some aspects of the initial project, which could have a negative affect on the local habitat, were reviewed [22]. The External Compliance Monitoring Group (ECMG) was chosen to serve as the external monitor responsible for auditing the implementation of the Consortium's environmental and social commitments for the Chad-Cameroon Oil Pipeline project.

The 1,070 km long pipeline is operated by the Tchad Oil Transportation Company S.A. (TOTCO) and the Cameroon Oil Transportation Company S.A. (COTCO) (collectively part of the consortium). The consortium owns about 80% of the shares of the Cameroon Oil Transportation Company (COTCO) and the Tchad Oil Transportation Company (TOTCO). The governments of Chad and Cameroon used World Bank loans to buy the other 20 % of the shares in the companies. The project’s compensation programs which are implemented in Cameroon by COTCO were created to ensure local communities would not be adversely affected by the construction of the pipeline. Individuals and communities were to be compensated for any possible negative social, economic and/or environmental impacts caused by the project. Yet five years on from the construction of the pipeline there are still unresolved claims and emerging issues. Pertinent issues include water pollution, loss of livelihood or property, unpaid compensation (either individual or community), damaged/destroyed infrastructure (such as roads) or unpaid wages [23]. Although the World Bank intervened on several levels to tacklethe expected complex environmental, social, and budgetary implications of such large-scale oil production, the project has been embroiled in so much controversy and the Bank finally announced its withdrawal in September 2008 [24].

On July 3 2009, the International AdvisoryGroup (IAG): for the Chad-Cameroon Petroleum Development and Pipeline Project was granted an audience by the newly elected Prime Minister during which they presented an update on evaluations carried out this far by the group and other partners. The IAG has been involved in the project from the time it kicked off but although the project is ongoing and will be for quite a few more years the group's mandate will soon come to an end [25].

Relevant Mechanisms

Relevant Websites

Keywords

Cameroon


Author

Original Author(s) International Bar Association, Mia Thomas

References

  1. ↑ Population Reference Bureau http://www.prb.org/Countries/Cameroon.aspx and this population is accountable for one of the highest literacy rates in Africa http://news.bbc.co.uk/2/hi/africa/country_profiles/1042937.stm
  2. ↑ L'Organisation pour l'Harmonisation en Afrique du Droit des Affaires. See Website.
  3. ↑ No. 2003-009 of 10 July 2003, No. 2007/001 of 19 April 2007, and Law No. 2002/004 of 19 April 2002
  4. ↑ Section 1 and 4 (1) Law No 2003-009 of 10 July 2003
  5. ↑ Section 11 Law No.2007/001 of 19 April 2007
  6. ↑ Article 12 UNIFORM ACT ORGANIZING SIMPLIFIED RECOVERY PROCEDURES AND MEASURES OF EXECUTION
  7. ↑ Sections 158 to 165 of the 1992 Labour Code
  8. ↑ Preamble to Law No.96-06 of 18 January 1996 to amend the Constitution of 2 June 1972
  9. ↑ Section 24 (1) the Labour Code applies to any contract of employment to be performed in Cameroon
  10. ↑ Section 86 (1) 1992 Labour Code sets minimum age at 14 years
  11. ↑ Section 80 (1) and (2) Labour Code 40 hours per week and 48 hours per week in agriculture based employment
  12. ↑ Section 3 Labour Code
  13. ↑ Section 2 (3) Labour Code
  14. ↑ Section 61 (2) Labour Code
  15. ↑ Section 4 (2) (a) and (b) Labour Code
  16. ↑ Section 1 (3) Labour Code
  17. ↑ For statistics and scope of problem see Eugene J. Kongnyuy, Asibani Y. Kongnyuy, Elihu D. Richter: Child labour in Cameroon. The Internet Journal of World Health and Societal Politics. 2008. Volume 5 Number 1. http://www.ispub.com/ostia/index.php?xmlFilePath=journals/ijwh/vol5n1/child.xml
  18. ↑ See ITUC 2008 Annual Survey of Violations of Trade Union Rights http://survey08.ituc-csi.org/survey.php?IDContinent=1&IDCountry=CMR&Lang=EN
  19. ↑ Section IV articles 95 and 96 and article 166 OHADA Uniform Act organizing collective procedures for wiping off debts
  20. ↑ Article 258 Loi n° 67/LF/1 12 Juin 1967 Instituant Le CODE PENAL
  21. ↑ Article 268
  22. ↑ See EU MULTI STAKEHOLDER FORUM ON CSR Round Table "Development aspects of CSR" 29/30 September 2003, Brussels
  23. ↑ RELUFA Report on field mission along the Chad-Cameroon Pipeline, 13-27 August 2008 and also the / International Advisory Group Chad-Cameroon Petroleum Development and Pipeline Project REPORT OF MISSION 14 TO CAMEROON JUNE 20-26 2008
  24. ↑ World Bank announces withdrawal from Chad-Cameroon Pipeline after early repayment
  25. ↑ World Bank announces withdrawal from Chad-Cameroon Pipeline after early repayment


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Contributor(s): This article was modified by 87.85.82.18 (24), International Bar Association (21), Miathomas (14), Kyle (9), and Doc (1).