GOVERNOR OF MOZAMBIQUE’S CENTRAL BANK ACCUSED OF CONFLICT OF INTEREST

MAPUTO, Mozambique’s Central Public Ethics Commission (CCEP), set up under the law on public probity, has accused the Governor of the Bank of Mozambique, Rogerio Zandamela, of a conflict of interests in the way the central bank handled the recapitalization of what had been the fifth largest commercial bank in the country, Moza Banco.

Moza Banco was rescued from collapse through a takeover by Kuhanha, the body which manages the Bank of Mozambique’s pension fund. The CCEP claims that Zandamela violated the public probity law by deciding on a matter in which he is a beneficiary, since the governor of the central bank is automatically chairperson of Kuhanha, which created a potential conflict of interest.

Kuhanha is a body owned by the central bank, and chaired by its governor so when the governor headed a process whereby Kuhanha became the major shareholder in Moza Banco, he was violating the public probity law.

Zandamela, however, had publicly argued that recapitalization via Kuhanha was the only means by which Moza could be saved from liquidation, and he had therefore acted in the interests of the stability of the Mozambican financial system.

Moza Bank suffered a liquidity crisis in mid-2016 and was in danger of being unable to meet its obligations to its clients. The Bank of Mozambique stepped in, sacked its Board of Directors, and installed a provisional board, under the chairmanship of one of the country’s most experienced bankers, Joao de Figueiredo.

When the existing shareholders, Mocambique Capitais (a grouping of about 400 Mozambican investors) and the Portuguese bank, Novo Banco, proved unable or unwilling to capitalize the bank, an Evaluation Commission, set up by the central bank, received bids for Moza from other bodies interested in running the bank.

In May, the decision was taken to put Moza into Kuhanha’s hands, and make it responsible for recapitalizing the bank. Under the new shareholding structure, Kuhanha holds 80 per cent of Moza. The existing shareholders retain the other 20 per cent — 10 per cent for Novo Banco and 10 per cent for Mocambique Capitais.

There is no suggestion in the CCEP document that Zandamela or others personally profited from the recapitalization of Moza Bank. Nonetheless, he might still be prosecuted. The CCEP has sent its findings to the Attorney-General’s Office (PGR) and to the Central Office for the Fight against Corruption (GCCC), and this may result in charges being filed.

Source: NAM NEWS NETWORK

GOVERNOR OF MOZAMBIQUE’S CENTRAL BANK ACCUSED OF CONFLICT OF INTEREST

MAPUTO, Mozambique’s Central Public Ethics Commission (CCEP), set up under the law on public probity, has accused the Governor of the Bank of Mozambique, Rogerio Zandamela, of a conflict of interests in the way the central bank handled the recapitalization of what had been the fifth largest commercial bank in the country, Moza Banco.

Moza Banco was rescued from collapse through a takeover by Kuhanha, the body which manages the Bank of Mozambique’s pension fund. The CCEP claims that Zandamela violated the public probity law by deciding on a matter in which he is a beneficiary, since the governor of the central bank is automatically chairperson of Kuhanha, which created a potential conflict of interest.

Kuhanha is a body owned by the central bank, and chaired by its governor so when the governor headed a process whereby Kuhanha became the major shareholder in Moza Banco, he was violating the public probity law.

Zandamela, however, had publicly argued that recapitalization via Kuhanha was the only means by which Moza could be saved from liquidation, and he had therefore acted in the interests of the stability of the Mozambican financial system.

Moza Bank suffered a liquidity crisis in mid-2016 and was in danger of being unable to meet its obligations to its clients. The Bank of Mozambique stepped in, sacked its Board of Directors, and installed a provisional board, under the chairmanship of one of the country’s most experienced bankers, Joao de Figueiredo.

When the existing shareholders, Mocambique Capitais (a grouping of about 400 Mozambican investors) and the Portuguese bank, Novo Banco, proved unable or unwilling to capitalize the bank, an Evaluation Commission, set up by the central bank, received bids for Moza from other bodies interested in running the bank.

In May, the decision was taken to put Moza into Kuhanha’s hands, and make it responsible for recapitalizing the bank. Under the new shareholding structure, Kuhanha holds 80 per cent of Moza. The existing shareholders retain the other 20 per cent — 10 per cent for Novo Banco and 10 per cent for Mocambique Capitais.

There is no suggestion in the CCEP document that Zandamela or others personally profited from the recapitalization of Moza Bank. Nonetheless, he might still be prosecuted. The CCEP has sent its findings to the Attorney-General’s Office (PGR) and to the Central Office for the Fight against Corruption (GCCC), and this may result in charges being filed.

Source: NAM NEWS NETWORK