Mozambican government wants swift talks on decentralization

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Mozambican government wants swift talks on decentralization

2:54 CAT | 15 Dec 2016

GPM (File photo) / Prime Minister Carlos Agostinho do Rosario

Answering questions in parliament on Wednesday, Prime Minister Carlos Agostinho do Rosário said the immediate silencing of the guns was the government’s top priority, and that the executive was in favour of speeding up negotiations on the decentralisation package in the Joint Commission.

Asked about measures taken following a complaint of alleged corruption in the acquisition of two Brazilian Embraer aircraft by Mozambican Airlines, Carlos Agostinho do Rosário said that “its investigation to clarify the matter is under way”.

The Attorney General’s Office has already opened a case through the Anti-Corruption Office, he said, adding: “We encourage the organs of the administration of justice to continue their work in the area of preventing and combating corruption.”

MPs also wanted to know the terms of reference for the international investigation into state-guarantees loans contracted by Ematum, Proindicus and Mozambique Asset Managemen) without the knowledge of parliament or international partners.

Audit results only in February

The prime minister said the audit, being conducted by an international auditors Kroll, was expected to be completed by February.

Carlos Agostinho do Rosario explained that the purpose of the audit was to provide an analysis of the financing contracts, funds obtained and acquisitions made by the three companies, as well as the identifying and analysing any irregularities in the administration and use of the funds. The loans contracted without the endorsement of parliament and international partners are valued at about US$2.2 billion.

“With respect for the Constitution of the Republic regarding the separation of powers, our government cannot and does not intend to interfere in the work underway at the level of the Attorney General’s Office,” the prime minister said.

In his answer to a complaint by the opposition that the municipalities they administer are not benefiting from the process of transferring functions and competencies from the management of primary and health services, Carlos Agostinho do Rosário reiterated the government’s position: that transfers would take into account local technical and organisational capacities.

The country’s ruling party, the Liberation Front of Mozambique (FRELIMO), was satisfied with the government’s responses, while the opposition was not. Question time continues today (December 15).

Regaining IMF’s trust will be difficult, recognises Minister Baloi

In another development, Foreign Minister Oldemiro Baloi on Wednesday (December 14) encouraged international partners to continue working with Mozambique to resume full financial flows.

Baloi was reacting to a visit by the International Monetary Fund (IMF) on Monday (12.12) intended to begin negotiations for the resumption of IMF aid to Mozambique, which was suspended following the discovery of undisclosed debts.

“There have been a number of work sessions and, as we anticipated, the rebuilding of trust will be a difficult, complex and demanding process, but we are determined to see it through,” Baloi said.

The International Monetary Fund warned on Tuesday (13.12) that Mozambique would need further macroeconomic adjustment measures in 2017. Work has to be done on wage restraint, the gradual elimination of price subsidies and the reduction of tax exemptions, but revenue management must be strengthened, the IMF mission said. Negotiations between the parties will resume in the first quarter of 2017.

Source: Deutsche Welle