Results of the audit on Mozambique’s will be disclosed, IMF says

24 March 2017

The results of the international and independent audit of the loans taken on by three public companies in Mozambique with State guarantees will be released, said on Thursday in Washington the spokesman for the International Monetary Fund (IMF).

Gerry Rice recalled that the IMF had resolutely called for this audit, which is being conducted by UK consultancy Kroll Associates, and said the results would be published, despite not knowing when that would happen.

Asked about what Mozambique should do first – negotiate a financial package with the IMF or restructure debt with creditors – Rice said, “there is no sequence” and “discussions are ongoing.”

The audit focuses on loans taken on in 2013 and 2014 by Mozambique Asset Management and Proindicus, worth US$1.4 billion, along with another US$727.5 million in sovereign debt that resulted from restructuring a bond issue of US$850 million issued by Mozambican tuna company Ematum.

The Attorney General of the Republic of Mozambique in February announced an extension on the audit – initially of 90 days – for another month at Kroll’s request and so it is expected that the work will be completed by the end of next week.

The independent international audit of hidden debt was a requirement of the IMF to resume support to Mozambique, after the suspension of its financing following the hidden debt scandal that came to light in April 2016, leading 14 state budget donors to discontinue the their payments. (macauhub)