(Business in Cameroon) – On October 10, during an extraordinary session of the Board of Directors of Trading & Exploitation (Tradex), held in Yaoundé, Simon Paley was removed from his position as CEO. Tradex, a company with mixed ownership, is seen as a key player in Cameroon’s petroleum product distribution sector. According to an official statement released on October 11, Paley, who had been Tradex’s CEO since 2019, was replaced on an interim basis by Emmanuel Patrick Mvondo, the company’s Deputy CEO.
As stated in the announcement of Mvondo’s appointment, “As Tradex celebrates its 25th anniversary, the arrival of a new leader marks the beginning of a new era of boldness, agility, innovation, and employee growth.”
Despite this optimistic message, Paley’s dismissal comes just after Tradex’s impressive financial and operational performance was publicly reported, covering the past five years during his tenure.
According to official data, Tradex recorded a net profit of CFA14.7 billion in 2023, a record for the company and a 107% increase over the five years. This profit was the highest since the company was founded in 1999. Additionally, thanks to over CFA8 billion in investments during the period, Tradex’s revenue grew by 32% between 2019 and 2023, rising from CFA291.3 billion to CFA387.3 billion.
Glencore and Trad’Card Scandals Cast Shadows
Despite these achievements, the Board of Directors’ decision to remove Paley was not unanimous. Shareholders of Geogas, which holds 36% of Tradex’s capital, did not vote for his dismissal in the October 10 session. However, with the support of shareholders from the National Hydrocarbons Corporation (SNH), which holds 54% of the capital, and other shareholders with 10% stakes, Paley was removed. “Geogas shareholders did not vote for the dismissal but supported the appointment of the interim CEO,” a reliable source confirmed.
When asked about the reasons for Paley’s removal, sources mentioned a “loss of trust.” However, two specific cases were raised during the Board meeting: the Glencore scandal and the Trad’Card fraud.
In the Glencore case, it was revealed that Cameroonian officials from SNH and Sonara received around CFA7 billion in bribes from the Swiss-based trader in exchange for certain business favors. The Trad’Card scandal, exposed in 2022, involved a fuel purchase card for Tradex stations, leading to a loss of around CFA2 billion for Tradex. The key suspect in the case, reportedly close to Paley, is currently on the run.
Contested Reasons for Dismissal
Paley’s supporters contest these reasons. While they acknowledge that the two scandals were discussed, they doubt their validity. “Regarding the Glencore case, some shareholders asked for direct evidence linking Simon Paley to this corruption case. No solid proof was presented. Without a court decision or a formal investigation by the Special Criminal Court (SCC), this reason seemed too weak to justify his dismissal,” said one of Paley’s close associates.
As a former SNH Commercial Director (2003–2019), Paley was a key figure in negotiating Cameroonian crude oil sales under the supervision of SNH’s CEO, Adolphe Moudiki. “Only the SNH CEO is authorized to sign oil sale contracts. Once negotiations are complete, the contract drafts are submitted to him for review. His signature binds SNH. This process was always rigorously followed, even during the years covered by the Glencore case,” a source explained.
Paley’s camp also distanced itself from the Trad’Card affair, which is pending before the SCC. “Simon Paley bears no responsibility for this scandal. While he was questioned during the investigation, no charges were filed against him. He wasn’t even called as a witness. The main suspect, who is said to be close to him, was responsible for his own actions. Moreover, this employee, now on the run, was hired and given responsibilities at Tradex several years before Paley became CEO,” the source added in defense of the former CEO.
Social Tensions and Abandoned Projects
Beyond these issues, Paley’s decision to abandon the acquisition of TotalEnergies’ gas stations in the Central African Republic and Chad after receiving the Board’s approval to make an offer did not sit well with some Tradex Board members. Tradex operates subsidiaries in both countries. Internal sources and Board members also cited a deteriorating social climate since Paley’s arrival in 2019, leading to the resignation of several executives in recent years. The most recent departure was Jessica Dina, the former General Affairs Director, who left for Cimencam just one year after her appointment.
“At first, we thought it was discipline because, let’s face it, there was some disorganization within the company. But later, the social environment really worsened due to certain decisions made by the CEO. For example, to take a break, employees now need a document from their supervisor to exit the building,” an employee revealed.
One of the decisions that contributed to the strained atmosphere was the cancellation of the “Car Plan.” This benefit allowed Tradex executives to acquire vehicles through the company, with only 20% of the purchase price paid in installments by the employee, while Tradex covered the remaining 80%. “Understandably, some managerial decisions may not please everyone, but the mission was to improve Tradex’s profitability. A challenge Simon Paley met, as shown by the 2023 figures,” one of Paley’s supporters commented.
SNH Power Struggle
Paley’s dismissal comes amid a crisis at SNH, Tradex’s parent company. The SNH Board of Directors and general management conflict SNH’s purchase of a 10% stake in Cotco SA, a deal worth CFA26.8 billion that was finalized on April 19, 2023. At an extraordinary Board meeting on July 24, 2024, SNH directors rejected the 2023 financial statements, a decision aimed at punishing this unauthorized transaction, according to a statement from Ferdinand Ngoh Ngoh, Secretary-General of the Presidency and SNH Board Chairman. This was an unprecedented move for SNH, which has been led by Adolphe Moudiki for 31 years, despite ongoing rumors of his departure.
A few days after the meeting, Maurice Matanga, SNH’s Strategy Director and Board Secretary, who attended the session at the Presidential Palace, was forced into retirement and relieved of his duties as Chairman of the Board at Chanas Insurance, where SNH holds a majority stake. For Paley’s supporters, his removal is part of the same dynamic. Paley, a native of the Grand-North region, has often been considered a serious candidate to succeed Moudiki at the head of SNH, which has not earned him many friends within Cameroon’s oil and gas giant.
