africa Debt Economy Finance Government Mozambique

Mozambican government pays the state’s debt to 4,000 companies

Four thousand state creditors for the provision of goods and services from 2007 to 2017, but whose payments required approval by the Administrative Court will receive the arrears owed to them, the Confederation of Economic Associations of Mozambique (CTA) announced.

The president of the CTA, Agostinho Vuma, said the CTA had received a communication from the government about payment of debts and that the decision will contribute to the recovery of the targeted companies.

The willingness to settle these debts was also noted by the Minister of Economy and Finance at a recent meeting with journalists in Maputo, during which he explained that in 2017 the Government had made the decision to “strengthen the relationship with economic agents by paying what was due to them to encourage companies to produce more and create jobs,” according to Mozambican newspaper Notícias.

Adriano Maleiane said at the time that the state owed these companies around 19 billion meticais (US$296.875 million) for the 2007/2017 period, of which about 16 billion meticais were owed by central government bodies. and three provincial ones.

Following validation after that decision by the Inspector General of Finance, according to Maleiane, the debt was split into three large groups, the first consisting of creditors who had contracts targeted by the Administrative Court, or a total of 1,196 companies.

The second group is made up of 1,933 companies where inspectors found that they had actually provided goods and services but either did not have the contracts or, if they had them, were not targeted by the Administrative Court.

In the third group, according to the Minister of Economy and Finance, there are 1,158 companies, which, according to the inspectors, had neither a contract nor evidence of providing any goods or services to the State.

From the assessment then made, out of the 19 billion meticais of arrears, 5.7 billion were unrecognised and 2.6 billion were validated, but were not paid due to lack of contracts or other documentation.

Source: Macauhub

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