Full disclosure of Mozambique’s debt audit is key to financial aid – IMF

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Full disclosure of Mozambique’s debt audit is key to financial aid – IMF

8:36 CAT | 14 Sep 2017

The International Monetary Fund (IMF) today considered that disclosure of the entire audit to hidden loans in Mozambique is a key element in negotiating a new program of financial and technical assistance.

“The summary of that audit report was published, now we would now like to see the publication of the entire report, and as we noted in our communication during the last visit of our mission to Maputo, we believe it is key for the authorities to provide the missing information highlighted in the audit summary and, in particular, critical information gaps regarding the use of loan proceeds,” said the director of the IMF’s communications department, this afternoon, following a set of questions posed by Lusa.

During the IMF’s biweekly press conference, Gerry Rice emphasised that disclosure of the full audit is very important in terms of the transparency of the country’s economic and financial management.

“Taking steps to fill the information gaps and to strengthen transparency and ensure accountability will be critical to [negotiations on] progressing toward a new program” of technical, political and financial aid.

The IMF mission that visited Mozambique in July left Maputo without announcing when would the institution resume financial support for the country.

Also Read: IMF takes harder line: publish Kroll & say where the $ went – Hanlon

Instead, the IMF has once again asked the government to help clarify where the majority of the two billion dollars in hidden state debt contracted between 2013 and 2014.

“Critical information gaps remain unaddressed regarding the use of loans proceeds,” said mission chief Michel Lazare, quoted in a statement released by the IMF on July 20.

This statement came after the three public companies that contracted the debts refused to give information to the consultancy Kroll.

This refusal was highlighted in the executive summary of the audit, which in June concluded that the companies (Ematum, Proindicus and MAM) and their tuna fishing, territorial waters defence and vessel maintenance projects served only as a front for banks to lend money.

The Press Briefing by Gerry Rice can be accessed here.

Source: Lusa / imf.org