Mozambique Airports needs deep reforms – CIP

Login

Register

http://www.clubofmozambique.com/

Mozambique Airports needs deep reforms – CIP

1:00 CAT | 27 Apr 2018

Because of its accumulated debt, public company Mozambique Airports (Aeroportos de Moçambique – ADM) needs deep reforms to continue to operate, civil society organisation the Public Integrity Centre (CIP) says.

“Analysis of ADM’s activities and financial flows leads to the conclusion that the resources needed for this company to continue to operate without deep reforms do not at present exist in Mozambique,” CIP says in an analysis note seen by Lusa.

The organisation states that “all reports and accounts, both from the company, auditors and the state itself, demonstrate an alarming degradation”, attributed by the analysis to “mismanagement and political interference”.

“The company is instructed to carry out ‘white elephant’ projects that do not provide the precious financial resources to repay the loans,” said the CIP, giving as an example, Nacala Airport in the north of the country, with its indications of bribery in the award of the building contract to the Brazilian construction company Odebrecht.

Mozambique: Is the airports company for sale to reduce the debt? – Hanlon

On the other hand, the organisation regrets intentions such as the one already expressed by the President Nyusi, to move forward with a new airport in Gaza, about 200 kilometres from Maputo.

“It must be acknowledged that Mozambique cannot afford investments of this magnitude, which imply indebtedness that can only be reimbursed by future generations,” it concludes.

ADM losses increased from the 3,000 million meticais (41 million Euros) registered in 2015 to 7,700 million meticais (106 million Euros) in 2016, the most recent year analysed by the CIP, an increase of about 155 percent, the organisation notes.