KROLL GIVEN EXTRA MONTH TO COMPLETE AUDIT OF MOZAMBICAN COMPANIES

The United States company Kroll, reputedly the foremost forensic audit company in the world, has requested, and been granted, a further month to complete its audit of the quasi-public Mozambican companies Pro-indicus, Ematum (Mozambique Tuna Company) and MAM (Mozambique Asset Management).

When the London branch of Kroll was hired last year to undertake the international, independent audit of the three companies it was initially given 90 days to complete the task. That deadline meant completing the audit by the end of February.

According to a statement issued here Monday by the Attorney-General’s Office (PGR), which is looking into crimes which may have been committed in setting up, financing and operating the three companies, Kroll submitted a preliminary report in January which detailed the audit activities undertaken so far, in accordance with the terms of reference, describing the progress made and outlining the steps which still need to be taken.

According to the PGR, the work undertaken by Kroll to date “includes analyses of extensive financial data and other available documentation, visits to the offices of the three companies, visits to facilities and equipment in several parts of the country, and interviews with members of the government, public servants, workers of the three companies and other figures”.

Kroll has also requested additional information from the suppliers of the three companies, from the banks which lent them huge sums and from other national and foreign institutions (which the PGR does not name).

Since collecting and processing this information is complex and is still under way, in Mozambique and abroad, Kroll asked for more time. The PGR states that, in collaboration with the International Monetary Fund (which demanded the audit as a condition for resuming normal relations with Mozambique), and with the Swedish Embassy here (which is financing the audit), it has agreed to grant Kroll a further month. Hence the final audit report should be delivered by March 31.

The three companies took out loans amounting to more than two billion US dollars from European banks (mainly Credit Suisse and VTB of Russia). These loans — 850 million USD for Ematum, 622 million USD for Proindicus, and 535 million USD for MAM — were on commercial terms, with high interest rates and short repayment periods. Since the loans were all guaranteed by the Mozambican government, they added 20 per cent to Mozambique’s foreign debt, and pushed it beyond the bounds of sustainability.

When a parliamentary Commission of Inquiry investigated the three loans last year, it found that the reason given for setting up the three companies was security in the Mozambique Channel. A “Project for Monitoring and Protection of the Exclusive Economic Zone” had been drawn up, and Ematum, Proindicus and MAM were among the instruments for implementing it.

This Project has never been published. It was deemed necessary because of threats of maritime piracy, illegal immigration, terrorism, drug trafficking, illegal fishing, and the need to guarantee security for oil and gas exploration.

Source: NAM NEWS NETWORK

KROLL GIVEN EXTRA MONTH TO COMPLETE AUDIT OF MOZAMBICAN COMPANIES

The United States company Kroll, reputedly the foremost forensic audit company in the world, has requested, and been granted, a further month to complete its audit of the quasi-public Mozambican companies Pro-indicus, Ematum (Mozambique Tuna Company) and MAM (Mozambique Asset Management).

When the London branch of Kroll was hired last year to undertake the international, independent audit of the three companies it was initially given 90 days to complete the task. That deadline meant completing the audit by the end of February.

According to a statement issued here Monday by the Attorney-General’s Office (PGR), which is looking into crimes which may have been committed in setting up, financing and operating the three companies, Kroll submitted a preliminary report in January which detailed the audit activities undertaken so far, in accordance with the terms of reference, describing the progress made and outlining the steps which still need to be taken.

According to the PGR, the work undertaken by Kroll to date “includes analyses of extensive financial data and other available documentation, visits to the offices of the three companies, visits to facilities and equipment in several parts of the country, and interviews with members of the government, public servants, workers of the three companies and other figures”.

Kroll has also requested additional information from the suppliers of the three companies, from the banks which lent them huge sums and from other national and foreign institutions (which the PGR does not name).

Since collecting and processing this information is complex and is still under way, in Mozambique and abroad, Kroll asked for more time. The PGR states that, in collaboration with the International Monetary Fund (which demanded the audit as a condition for resuming normal relations with Mozambique), and with the Swedish Embassy here (which is financing the audit), it has agreed to grant Kroll a further month. Hence the final audit report should be delivered by March 31.

The three companies took out loans amounting to more than two billion US dollars from European banks (mainly Credit Suisse and VTB of Russia). These loans — 850 million USD for Ematum, 622 million USD for Proindicus, and 535 million USD for MAM — were on commercial terms, with high interest rates and short repayment periods. Since the loans were all guaranteed by the Mozambican government, they added 20 per cent to Mozambique’s foreign debt, and pushed it beyond the bounds of sustainability.

When a parliamentary Commission of Inquiry investigated the three loans last year, it found that the reason given for setting up the three companies was security in the Mozambique Channel. A “Project for Monitoring and Protection of the Exclusive Economic Zone” had been drawn up, and Ematum, Proindicus and MAM were among the instruments for implementing it.

This Project has never been published. It was deemed necessary because of threats of maritime piracy, illegal immigration, terrorism, drug trafficking, illegal fishing, and the need to guarantee security for oil and gas exploration.

Source: NAM NEWS NETWORK