MICROCAPITAL BRIEF: Bâtisseur de Richesse (BR SARL) Among 50 Microfinance Institutions Closed in Gabon, David Mapakou Arrested For Alleged Savings Fraud

The Ministry of Economy of Gabon recently froze the activities of 50 microfinance institutions that lacked approval to offer microfinance services. Among these is Bâtisseur de Richesse (BR SARL), whose Director David Mapakou, has been arrested in Paris, France, for savings fraud.

BR Sarl operated a pyramid fraud, also known as a Ponzi scheme, whereby it paid above-market interest rates to initial savers from the deposits of later savers. When the flow of new deposits no longer allowed for the remuneration of previous savers, the resulting liquidity problems brought down the company, driving Mr Mapakou to flee the country.

The Ministry of Economy released a statement proclaiming “This company and its leaders will therefore be prosecuted for illegal practice of microfinance activity.”

The fraud led to BR SARL collecting CFA 14 billion (USD 24 million) from its victims. One of them admits: “We thought that there were Americans behind this company, it was a guarantee of reliability.”

Gamifi is the only institution in Gabon that reports to the US-based nonprofit Microfinance Information Exchange.

By Kevin van den Brink, Research Associate

Sources and Additional Resources

[1] Jeune Afrique, Societe, “Gabon: Yves David Mapakou, le Pasteur qui promettait de multiplier l’epargne”

[2] Afrique Inside, Le Fil Eco, “Gabon: Le Gouvernement Met Fin A 50 Etablissements Illegaux De Micro-Finance”

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