https://src.cm/Cameroon’s state-owned debt recovery agency, the Société de Recouvrement des Créances du Cameroun (SRC), consistently spent more on staff than it earned over several years, according to a recent audit by the Audit Chamber of the Supreme Court.
The report, covering the 2018–2022 period, highlights a structural imbalance between personnel costs and operational revenue that contributed to repeated financial losses at the agency. SRC is responsible for recovering debts owed to the state, collecting delinquent taxes, and managing government receivables. Its revenue comes primarily from commissions on recovered funds, with additional income generated from interest on term deposits and returns on securities.
The audit shows that staff expenses represented an average of 86 percent of the agency’s net banking income over the five-year period. In 2020, during the height of the COVID-19 pandemic, personnel costs peaked at 112 percent of revenue, as recoveries fell sharply and commissions declined. That year, SRC recorded total revenue of CFA1.3 billion, while personnel costs reached CFA1.4 billion. A similar pattern emerged in 2022, when the agency spent CFA1.86 billion on staff, slightly exceeding net banking income of CFA1.82 billion.
“Personnel costs have been the primary driver behind repeated losses,” the Audit Chamber said, noting that SRC posted negative results in three of the five years reviewed, including a net loss of CFA1 billion in 2022. Over the period, cumulative losses reached CFA2.1 billion.
The audit also highlighted a mismatch between staffing and core operational needs. Of SRC’s 168 employees across headquarters and regional branches, only 18 were directly assigned to debt recovery as of March 2024, representing just 10.7 percent of the workforce. “The company’s weak performance is partly explained by recruitment priorities favouring non-recovery roles,” the report said.
Personnel expenses rose sharply between 2018 and 2022, driven by new hires, higher allowances, seniority bonuses, a 5 percent salary adjustment, and the inclusion of social charges for 2022. The Audit Chamber said this cost structure limited SRC’s ability to generate profits, particularly in years when recoveries fell due to external factors such as the health crisis.
SRC’s financial difficulties come amid broader efforts by the Cameroonian government to strengthen public sector efficiency and boost state revenue. Debt recovery agencies like SRC are critical for ensuring that government funds owed by companies and individuals are reclaimed, supporting fiscal stability and funding public services.
Analysts say the audit underlines the challenges faced by state-owned enterprises in balancing workforce costs with operational output. Effective debt recovery requires not just adequate staffing but also alignment of human resources with core functions. High administrative overheads, coupled with low personnel deployment on revenue-generating activities, can quickly erode profitability.
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The SRC report arrives as the government looks to tighten oversight of public agencies, improve financial management, and ensure accountability in state-owned enterprises. Measures suggested by auditors include better control of personnel costs, realignment of staff to debt recovery roles, and stricter monitoring of expenditure relative to income.
Cameroon has historically relied on performance-based revenue models in public agencies such as SRC, where income depends heavily on successful recoveries. The audit illustrates the risks of high fixed personnel costs in institutions with variable revenues, particularly during economic shocks or unforeseen crises.
The government has yet to issue an official response to the audit findings. Meanwhile, financial observers note that implementing recommendations could stabilize SRC’s operations, reduce losses, and increase the agency’s capacity to reclaim debts owed to the state.
The audit underscores a broader challenge across Africa, where state-owned enterprises often struggle with high personnel costs, inefficiencies, and misaligned staffing structures, even in sectors critical to national revenue collection.
Société de Recouvrement des Créances du Cameroun (SRC) is Cameroon’s state-owned debt recovery agency responsible for reclaiming debts owed to the government. Its mandate includes managing delinquent accounts, collecting unpaid taxes, and recovering public funds through commissions on recovered amounts. The agency also generates additional income from interest on term deposits and returns on securities investments.
SRC’s financial health is closely tied to its operational efficiency and the volume of successful recoveries. Unlike standard commercial banks, the agency’s revenue is largely performance-based, meaning staff productivity and effective debt recovery are critical to generating sufficient income.
An audit by the Audit Chamber of Cameroon’s Supreme Court has found that SRC’s personnel costs consistently exceeded sustainable levels, undermining profitability. Between 2018 and 2022, staff expenses averaged 86 percent of net banking income, peaking at 112 percent in 2020 during the COVID-19 pandemic. This period also included a cumulative net loss of CFA2.1 billion, with three out of five years ending in negative results.
The agency employs 168 staff members, but only 18 were directly assigned to debt recovery as of March 2024, highlighting a mismatch between workforce allocation and the core mandate. Audit findings suggest recruitment and compensation policies favored administrative and non-recovery roles, contributing to inefficiencies.
Personnel costs rose sharply between 2018 and 2022 due to new hires, higher allowances, seniority bonuses, and a 5 percent salary adjustment, in addition to the inclusion of social charges. The audit linked these rising costs to the agency’s recurring losses, noting that years when revenue fell—such as during the COVID-19 crisis—were particularly affected.
The SRC’s performance is under scrutiny as Cameroon seeks to improve public sector efficiency and strengthen the recovery of government revenues. Managing staffing levels, ensuring alignment of roles with operational priorities, and controlling personnel expenses are considered key to restoring financial stability.
