africa Finance Government Legislation Mozambique

Mozambique introduces measures to contain public officials’ expenses

The Mozambican government has put an end to housing rentals and the sale of official vehicles to state officials, who receive a subsidy equivalent to 30% of their basic monthly salary, according to a decree law published on Wednesday in the country’s official bulletin.

The decree, approved as part of a set of measures to contain public expenditure, adds that the State will only continue to bear the cost of rents of senior State officials living in rented houses for one more year, setting the maximum limit at 120,000 meticais (about US$2,000) per month.

The end of the sale of official vehicles makes it impossible for government officials, especially ministers, to buy, for personal gain, the vehicles in which they were transported when they were in office.

The new rules establish a maximum amount of 5,000 meticais (US$84) for fuel for the personal vehicles of senior State officials and holders of government positions, and the same amount is also set for fuel for members of the boards of state sector companies, public funds and other public institutions with administrative and financial autonomy.

The President of the Republic, President and Vice Presidents of the Mozambican Parliament, the President of the Supreme Court, President of the Administrative Tribunal, President of the Constitutional Council and Attorney General and Deputy Attorney General remain exempt from the new rules.

The new measures to curb public spending were announced on 6 December by the Economy and Finance Minister Adriano Maleiane, who at the time said he expected the government to save 7.2 billion meticals (US$120 million).

Source: Macauhub

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