IMF welcomes decision of Mozambique’s Public Prosecutor

31 January 2018

The Mozambican Public Prosecutor’s Office (PGR) took an “encouraging step” by submitting a complaint to the Administrative Court seeking the financial accountability of the public managers and state-owned companies involved in taking on undisclosed State-backed debts, said the resident representative of the International Monetary Fund (IMF) in Mozambique on Tuesday.

Ari Aisen recalled in a statement issued in Maputo that there were gaps in the information included in Kroll Associates UK’s audit report of the three public companies – Ematum, ProIndicus and Mozambique Asset Management – which together took on hidden loans worth US$2 billion.

The PGR said on Monday that an investigation, which is part of the audit by Kroll UK and a report by a parliamentary committee set up to investigate the hidden debt situation, had uncovered what could be considered financial crimes.

These violations, according to the statement, include failure to comply with the procedures and limits established by law in issuing government guarantees, non-compliance with legal procedures for contracting external financing and goods and services, as well as the execution of acts and contracts without submitting them for mandatory inspection by the appropriate authorities.

The IMF has said it will only resume financial support to Mozambique after the completion of this process, with due accountability of the people involved. (macauhub)