Thursday, April 27, 2017

MOZAMBIQUE: "LEGALIZED" HIDDEN DEBTS IN THE GENERAL STATE ACCOUNTS

The government party FRELIMO, approved the General State Account for 2015 by a majority in the plenary session of the National Assembly (NA). The main opposition party - RENAMO and the Democratic Movement of Mozambique (DMM) had already expressed on other occasions their discontent and disapproval, since in this budget the contentious debts of Ematum, Proindicus and Mozambique Asset Management companies are legalized. The designated hidden debts contracted by these companies with State guarantees are now included in the General State Account and totals around 2 billion dollars.
RENAMO ended up boycotting the parliamentary session, eventually leaving the discussion room. As for the DMM, it voted against, considering that these debts were contracted in default of NA and accuses the party FRELIMO of being responsible for the burden of this indebtedness that led the country to an unprecedented economic and political crisis. On the other hand FRELIMO by voting in favor, emphasized that the NA is sovereign, the registration of debts contracted by these companies is legal and that this has already been duly justified in accounting terms.Thus, the 2015 economic year was eventually approved, but certainly the ongoing climate of tension between government and opposition will remain in days to come.


Miguel Verde – Senior Consultant, Professor of International Relations

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