LAM embezzlement case: Three found guilty – AIM report

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LAM embezzlement case: Three found guilty – AIM report

10:27 CAT | 25 Mar 2020

Photo: O País

The Maputo City Court on Tuesday sentenced three people to 14 years imprisonment for embezzling 50 million meticais (about 746,000 US dollars) from Mozambique Airlines (LAM).

In the dock were the former chairperson of the LAM Executive Commission, Antonio Pinto, the former LAM financial director, Helder Fumo, and a director of the advertising company, Executive Mozambique, Sheila Temporario

At the heart of the prosecution case were contracts between LAM and Executive Mozambique, dating from November 2016 and June 2017, under which the company was to provide audio-visual materials, notably the in-flight magazine “Indico”, to improve LAM’’s image.

According to the prosecution, LAM paid Executive Mozambique a total of 1.17 million meticais between November 2016 and June 2017. From that month, and up until March 2019, LAM paid the company 2.34 million meticais a month.

The prosecution says that some of the materials promised by Executive Mozambique were never delivered.

Prosecutors also found it strange that LAM should hire an outside company for work which should have been done by LAM’s own marketing department. They believe that the real purpose of the contracts was simply to extract money from LAM’s coffers.

The contracts were signed “without taking into account the full interests of LAM, and were undertaken with other interests alien to the company”, the prosecuting attorney told the court.

Pinto and Fumo both denied ever making any payments to Executive Mozambique.

The judge found the prosecution case convincing, and in addition to the 14 year jail sentences, he ordered the three to pay compensation to LAM of 31.4 million meticais. Each must pay a third of that amount.

There are certain to be appeals against this verdict.

Source: AIM