Mozambican Public Prosecutor calls for people involved in hidden debts to be held accountable

30 January 2018

Mozambique’s Public Prosecutor’s Office (PGR) will seek financial accountability from public managers and public companies that took on government-backed hidden debts worth US$2 billion between 2013 and 2014, the PGR said in a statement released on Monday in Maputo.

“The Public Prosecution Service submitted a complaint to the Administrative Court on 26 January on the financial accountability of public managers and state-owned companies involved in the signing and management of financing, supply, and service contracts,” the statement said.

The decision is based on the preparatory documents of the case concerning the public debt contracted by ProIndicus, Empresa Moçambicana de Atum (Ematum) and Mozambique Asset Management (MAM) through external financing guaranteed by the State.

The PGR reported it had uncovered “number of facts that could constitute financial offences,” as part of the investigation, which is part of the audit report by Kroll Associates UK, as well as the report of the Parliamentary Inquiry Committee to investigate the debt situation.

The Public Prosecutor’s Office mentions three points – “failure to comply with the procedures and limits established by law in the issuance of guarantees by the government,” “non-compliance with legal procedures in the contracting of external financing and in the contracting of goods and services,” “execution of acts and contracts without their submission for mandatory inspection by the competent authorities.”

An audit by international consulting firm Kroll Associates UK requested by the Public Prosecutor’s Office paid for by the Swedish Embassy in Mozambique and partially released in June 2017, describes the three companies owned by the State Information and Security Service as a front, without credible management plans and implicates several holders of public office. (macauhub)