'Hidden Debts': Judge orders release of confidential documents - AIM report
There must be “cancellation or significant reduction in debt owed by the government as a result of the loans to Ematum, Proindicus and MAM. Loans from the IMF should not be used to repay the debts to irresponsible lenders, risking trapping Mozambique in a debt trap. Lenders need to share in the costs of adjustment brought about by their irresponsible actions and the changed economic circumstance of low commodity prices,” declared a large coalition of civil society organisations in a statement published in Savana Thursday 13 April, and available on in English on http://bit.ly/2ojpMiP and in Portuguese on http://bit.ly/2pF2pBn.
The statement also calls for political leaders to be held accountable for their actions and for the Kroll audit report to be published. “Where the money has gone has to be publicly disclosed for the current crisis to be resolved and before more money can be lent to the Mozambique government. ” The statement was issued by the members of the Fórum de Monitoria do Orçamento (Budget Monitoring Forum), the Grupo Moçambicano da Dívida (Mozambique Debt Group), and the Coligação Transparência e Justiça Fiscal (Fiscal Justice and Transparency Network), as well as various international organizations.
The statement also calls on the government and IMF to agree to no increase in takes and no cuts to essential services that negatively impact low and middle income Mozambicans. It wants megaproject contracts renegotiated to increase the taxes paid and strengthened anti-corruption and public tendering systems. Finally the organisations say there should be “an analysis of the current situation of those in poverty and potential measures to protect those in or near poverty from negative impacts. All actions must be based on ensuring that poverty does not increase, and new actions must show a high potential for reducing poverty.”
By Joseph Hanlon
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