Audit report omits details about fate of millions of dollars in Mozambique

26 June 2017

The summary of the audit report on loans taken out by Mozambican state-owned companies with a state guarantee, released on Friday in Maputo, says there was mismanagement and violation of the law but comes to no conclusion about the people responsible.

The 64-page document, released by the Mozambican Attorney General’s Office, merely identifies some actors throughout the process by letters of the alphabet, but reveals, for example, inconsistencies in the use of US$500 million dollars.

This audit, which was paid for by Sweden, was required after the International Monetary Fund (IMF) demanded that it be carried in order to resume support to Mozambique, following the disclosure of two undisclosed loans taken on in 2013/2014 by state-owned companies ProdIndicus and Mozambique Asset Management, in the combined amount of US$1.157 million (US$622 million and US$535 million, respectively).

Mozambican tuna company, Ematum later issued a US$850 million bond loan, which is precisely where the inconsistencies in the use of US$500 million come in.

Some of the money was actually used to buy boats for tuna fishing and marine surveillance vessels, and the missing money was allegedly used to purchase marine safety equipment, but auditing company Kroll Associates UK was not able to find any signs of this equipment.

In concrete terms, Kroll Associates UK was unable to clarify the fate of US$2.007 billion that were recorded in Mozambique’s public debt, except for the part relating to the purchase of the vessels, and the company’s technicians were often given the response that the information requested was “confidential and therefore not available.” (macauhub)