CIP says Mozambique lost $80 million to over-invoicing

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CIP says Mozambique lost $80 million to over-invoicing

12:57 CAT | 11 Dec 2018

Photo: O País

Mozambique lost more than US$80 million to over-invoicing in the liquid fuels sector between 2013 and 2015, and US$10 million diverted in the purchase of raw material in the energy sector.

The figures are from a study presented on Monday by the Public Integrity Centre (CIP), just 24 hours after the celebrations of the International Day to Combat Corruption.

The study deals with the impact of corruption in the fuel and energy sectors, where, according to the CIP, corruption has been characterised mainly by the over-invoicing of fuel imports, which increases the price to the final consumer.

Still in the fuel sector, the study reveals that 50 percent of the money paid by consumers goes to cover the expenses of the Mozambican Petroleum Company and gas stations.

Over-invoicing also occurs in the energy sector, and Mozambique Electricity (EDM) has itself denounced a corruption scheme in which the company bought electricity meters for US$100 per unit, when in fact they were available for US$20.

CIP also criticises the scheme under which Cahora Bassa Hydroelectric sells almost all the energy it produces at low cost to South Africa, while EDM buys energy from independent producers at much higher prices, in the end harming the final consumer.

The CIP says it is urgent that the Energy Regulatory Authority takes action and that the government stops usurping the role of the sector regulator and leading the pricing process itself.

Source: O País