Most of the corn flour circulating in Mozambique is contraband
Frelimo and MDM votes in parliament yesterday sanctioned a visit by President Philip Nyusi to China next week, with Renamo boycotting the session on the grounds that priority should be given to a debate on public debt.
Renamo insists that parliament should prioritize the debate on the controversy surrounding Mozambique’s public debt, which has led donors to suspend aid to the country in recent weeks.
Although the debt is not in the current session’s agenda, it will eventually be addressed by the Standing Commission, with the government discussing the issue in specialized committees and in plenary session.
Hidden borrowings hinder international aid to Mozambique
The recent discovery of state-guaranteed debts incurred by companies in 2013 and 2014 has been in the spotlight in Mozambique in recent weeks.
Last weekend, the Association of Combatants of the National Liberation Struggle (ACLLN) argued that the state should only take on the public part of the debt and that companies and their respective shareholders must assume responsibility for the commercial part.
The ACLLN further argued that possible conflicts of interests of individual investors in EMATUM, Proíndicus and Mozambique Asset Management company should be ascertained. Debts incurred by these companies of about US$2 billion were concealed by the government.
Minister of Economy and Finance Adriano Maleiane acknowledged last week that the IMF, World Bank and G14 had suspended financial aid to the country, and said the government was working to clarify the debt issue.
At US$467 million, the suspension of aid from the Programme Support Group represents a 12 percent shortfall in the state budget.
On Monday, the US government announced that it would review the assistance to Mozambique, in particular its aid to the state budget. A press release from the US embassy in Maputo said that the conditions for aid to Mozambique are transparency, accountability and fiscal responsibility.
How to get around the crisis?
Meanwhile, Minister Maleiane has announced some of the measures to be taken by the Mozambican government to address the current situation. “We will travel less, spend less on fuel, we will spend less on other things that can be dispensed with without harming normal functioning,” the economy and finance minister said. “But I can assure you, education and health will be the last to be affected.”
Speaking to DW Africa, analyst Moises Mabunda said that it was possible to cover the budget deficit by reducing “the 23 ministries to 15. A minister is entitled to five cars and this should be reduced to three. This will automatically reduce the amount of fuel they buy. They also have unlimited phone subsidies of excessive values”.
The analyst also believes that the law covering benefits for former heads of state should be revised, and adapted to Mozambican conditions, and considers that reintegration allowances for retiring government office holders are unaffordable and unnecessary.
Mabunda thinks it is also possible to reduce state expenditure by abolishing deputy minister and permanent secretary posts at the district level. In municipalities, he advocates the abolishing of the post of governor, avoiding duplication of functions with the mayor, as in the districts.
Leave a Reply
Be the First to Comment!
You must be logged in to post a comment.
You must be logged in to post a comment.