Mozambique: IGEPE removes LAM board of directors, appoints management committee

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Mozambique: IGEPE removes LAM board of directors, appoints management committee

7:41 CAT | 14 May 2025

File photo: Macauhub

The Mozambican Institute for the Management of State Holdings (IGEPE) announced on Tuesday the removal of the board of directors of Mozambique Airlines (LAM) and the appointment of a management committee to be chaired by Dane Kondic.

In a statement, IGEPE said that the decision was taken yesterday, at an extraordinary general meeting of LAM, as part of the “revitalization process” of the state-owned airline. The statement adds that Marcelino Gildo Alberto, who until now was chairman of the board of directors, and directors Altino Xavier Mavile and Bruno Miranda, will be removed with “immediate effect”.

The appointment of a non-executive board of directors was also approved, comprising representatives of the state-owned companies that this year became shareholders of LAM: Ports and Railways of Mozambique (CFM), Hidroelétrica de Cahora Bassa (HCB) and insurance company EMOSE.

The appointment of a “management committee, subordinate to the non-executive board of directors, with executive functions, responsible for managing the company and ensuring the continuity of operations” was also approved, and will be chaired by Serbian national Dane Kondic, a former CEO of Air Serbia and also a former chairman of the board of directors of the Portuguese airline EuroAtlantic.

The government confirmed last week that it will proceed with a forensic audit of LAM’s accounts for the last ten years and restructure the company, which has around 900 employees.

The President of Mozambique, Daniel Chapo, said on April 28 that there are “foxes and corrupt individuals” within LAM, with “conflicts of interest” that prevented the restructuring of the company in 100 days.

When presenting the results of the first 100 days of government, the head of state denounced people “with conflicts of interest” within the state-owned company, whose objective is to prevent LAM from “having its own planes”.

“One of the impactful actions we had planned for these 100 days was the acquisition of three aircraft for LAM. However, when we decided that we would have at least three aircraft available before 100 days, we discovered that within LAM we had handed over foxes to look after a henhouse, or cats to look after mice”, said the President of Mozambique.

He stated that it is in the interests of these people that the company “continues to rent aircraft, because they earn commissions by renting aircraft”, and the Government, which decided to restructure LAM, had to “reorient the process, since it is important to look after the interests of the people and not the interests of individuals or groups”.

On 5 February, the Government authorised the sale of 91% of the State’s stake in the LAM airline to state-owned companies, indicating that the amount will be used to acquire eight aircraft, actions aimed at restructuring the company within the scope of the 100 days of governance.

The resolution approved by the Mozambican government determined that only CFM, HCB and EMOSE could acquire the State’s stake in LAM.

The President of the Republic promised a broad restructuring of LAM, including human resources, promising Mozambicans a new phase for the flag carrier.

READ: Rescue of LAM Mozambique Airlines led by Knighthood Global – report

Daniel Chapo stated on April 28 that, in the context of the process relating to the acquisition of the three aircraft, “people left Mozambique, with money available from the new shareholders, and spent 15 days in Europe to inspect aircraft and returned to Mozambique saying that they had not managed to inspect a single aircraft, which makes no sense and is illogical”.

“When we discovered that a den of corruption was established within our company (…) we decided to cancel the tender, we will restructure the company, and clean it up with competent people who want to work for the Mozambican people”, Chapo concluded.

For several years, LAM has been facing operational problems related to a reduced fleet and lack of investment, with a record of some non-fatal incidents, associated by experts with poor aircraft maintenance.

Source: AIM