africa Economy FDI Finance Government Mozambique

Mozambique: Attorney General receives audit report into hidden debts

Mozambique’s Attorney-General’s Office (GR) has received a report carried by US firm Kroll into $2 billion in secret loans taken out by state-controlled companies, a private TV station revealed on Saturday.

According to Stv, Kroll delivered the report to the government on Friday, thus meeting the final deadline for submission. It said the report would be released to the public as soon as possible. Initially, Kroll was given a 90-day deadline for the report, which expired at the end of February. The audit’s release has been delayed several times.

The discovery of the loans to state-owned fishing company EMATUM, Proindicus and Mozambique Asset Management prompted the International Monetary Fund to halt its support programme and led to the collapse of Mozambique’s currency and a debt default.

All of its other major western partners followed the IMF’s lead, in particular all 14 donors who used to provide direct support to the Mozambican state budget suspended further disbursements.

The IMF made clear that a key condition for resuming normal relations was an independent, international audit of Ematum, Proindicus and MAM.

The government accepted, and the investigations were placed under Kroll to carry out the audit, an exercise which the Swedish embassy financed.

Source: Journal Du Cameroun

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