Maputo, Mozambique, 11 Oct – Tanzanian company Mohammed Enterprises Tanzania (METL) signed a contract Monday in Maputo to buy bankrupt Mozambican textile company Texmoque, in the city of Nampula, for US$12 million.
Silvestre Sechene of the Mozambican institute for management of state shareholdings signed the contract on behalf of Mozambique, while on behalf o METL the signatory was Mohammed Dewji, which promised that his company would invest US$20 million in acquiring new equipment and projected that the factory would be operational in 2007.
Texmoque which was once the largest textile company in central Mozambique but has been out of operation for years, was 70 percent held by the Multiplier Group, owned by Portuguese businessman Frederico Magalhães, and the remaining capital was in the hands of the Mozambican state.
Magalhães sold the company in 2003, alleging that the factory was not economically viable due to the crisis in the Mozambican textile sector.
The re-privatization process for Texmoque in METL’s favor began in 2003, but came to a halt due to corruption allegations brought by Mozambican company Grupo Gulamo, which had also been interested in acquiring the textile company.
According to Gulamo METL bribed the state holdings management institute directors, Silvestre Sechene and Daniel Tembe, with a payment of 40,000 euros, which then led to the sale of Texmoque to METL.
Following those accusation, the heads of IGEPE sued the newspaper which published the allegations, in a case that is still in the courts. (macauhub)