Mozambican government closes down two state companies

23 October 2013

Road and bridge construction and maintenance company Empresa de Construção e Manutenção de Estradas e Pontes (ECMP) and equipment leasing company Empresa de Aluguer de Equipamento (EAE), responsible to the Mozambican Ministry for Public Works and Housing, have been closed down, a council of ministers spokesman said Tuesday in Maputo.

Alberto Nkutumula said that the approval of the decree to close down the companies was the most practical solution as the two companies, even after being restructured, still had an overly heavy structure with an excessive number of workers and debts of around 700 million meticals (US$23 million).

Cited by Mozambican news agency AIM, Nkutumula said that in the meantime new construction companies with modern equipment had been set up, which had the business of the two companies unviable.

The two companies, which were not competitive enough to be awarded construction projects, had stopped paying workers’ salaries, making social security payments and paying of debts to suppliers. (macauhub)