africa Banking Economy Government Mozambique

Mozambique administrative court due soon to rule on hidden debt case

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The Mozambican Administrative Court (TA) will shortly issue a ruling on the hidden debt case sent to it by the Attorney General’s Office (PGR), said spokesman Jeremias Zuanda in Maputo on Wednesday on the sidelines of an international seminar on public works auditing.

The PGR announced last January it would ask for the financial accountability of public managers and state companies that have contracted the hidden debts of about US$1.15 billion between 2013 and 2014, as well as the debt taken on by the Mozambican Tuna Company, now called Tunamar, in the amount of US$850 million.

The statement issued at the time specifically stated that the Public Prosecutor’s Office would submit a complaint to the Administrative Court with a view to making public managers and state-owned companies involved in the conclusion and management of financing, supply and service contracts financially accountable.

The hidden debt case led in April 2016 to the International Monetary Fund (IMF) and the 14 donors that directly supported the State Budget to suspend their programme of support to Mozambique.

At the time, the IMF set an independent audit of the three companies as a condition for resuming support.

The PGR then hired Kroll Associates UK to conduct the audit, with the Swedish embassy in Mozambique bearing the cost, and in June 2017 it published the executive summary of the audit report, promising to publish the final report after three months, which has not happened to date.

Source: Macauhub

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