Angolan state-owned companies post losses of US$173 million in 2018

9 October 2019

The accounts of 55 companies in Angola’s public business sector shows an aggregate loss of 66 billion kwanzas (US$173 million) in 2018, according to reports and accounts released on the Institute of State Assets and Holdings (IGAPE) website.

These companies had revenues of 106 billion kwanzas (or US$279 million) and total losses of more than 173 billion kwanzas (US$452 million), according to figures released by IGAPE and quoted by the Jornal de Angola newspaper.

TAAG, the flagship air carrier, is the publicly-owned company with the biggest loss in 2018 of almost 100 billion kwanzas (about US$260 million), a sharp increase over 2017, with Angola Telecom coming in second, with a loss of 35 billion kwanzas (over US$90 million).

All the reports of the independent audits carried out on the accounts of these companies, signed by Ernst & Young Angola, have reservations regarding the figures presented.

The non-conformities range from the lack of reliable accounting records, the lack of payment of taxes and contributions to the State (in the case of EPAL), among other problems, and in the case of TAAG the auditor even mentions that the company needs to be recapitalised or it may be, “prevented from continuing its normal course of business.”

On the positive side is Angolan state oil company Sonangol with a profit of almost 80 billion kwanzas (about US$209 million), followed by diamond trading company Sodiam with 10 billion kwanzas (US$38 million) and Recredit with 8.5 billion kwanzas (US$22 million).

Angola’s Public Business Sector comprises a total of 81 companies (70 public companies, eight public domain companies and three minority interests). (Macauhub)