PM MAKES CLEAR MOZAMBICAN GOVT HAS NO PLAN TO REPAY UNAUTHORISED DEBTS

MAPUTO– Mozambican Prime Minister Carlos Agostinho do Rosario has made clear that the government has no intention of paying off the debts of three State-owned companies obtained unlawfully by the previous administrion.

The three companies — Ematum (Mozambique Tuna Company), Proindicus and MAM (Mozambique Asset Management) — obtained loans totalling just over two million US dollars in 2013 and 2014 from European banks Credit Suisse and VTB of Russia. The Mozambican government of the time, headed by President Armando Guebuza, illegally guaranteed the loans.

Those guarantees smashed through the ceiling on guarantees established by the 2013 and 2014 budget laws. They also violated a clause in the Mozambican Constitution under which only the country’s parliament, the Assembly of the Republic, can authorise such debt.

Rosario, speaking in the Assembly Thursday at the end of a two-day debate on the General State Account (CGE) for the 2016 financial year, declared: Aas we have stated on previous occasions, concerning the commercial debt contracted with State guarantees, we reiterate that while the legal procedures around this dossier are still ongoing in the institutions of justice, we have not been making any payments.”

The Attorney-General’s Office (PGR) has been investigating the three companies since 2015, and no end to these investigations is in sight. Hence any hope the creditors may have of recovering their money in the near future look certain to be dashed.

Nonetheless, Rosario said, the government had been maintaining a permanent dialogue with the creditors in order to improve trust in the country on the international financial markets. “This dialogue is fundamental because it makes room for the private sector to mobilise resources on the foreign market, under favourable terms and conditions, to invest in structuring projects in our economy, he added.

Source: NAM NEWS NETWORK