Mozambique: HCM records over 1,000 cases of conjunctivitis since beginning of March
FME's President - Manuel Pereira
Flying red! This is the reality of most Mozambican contractors this fiscal year. The president of the FME, Manuel Pereira, talks about 700 construction companies in bankruptcy.
These alarming figures mean more Mozambicans will be unemployed. This is one of the negative scenarios of the imminent closure of approximately 700 construction companies as early as next year due to this crisis that has shaken up a large number of contractors.
Just to get an idea, these companies (700 firms) represent close to 90 per cent of the total registered Mozambican construction companies, according to Pereira.
“These are salaries in arrears, unpaid taxes, arrears of government debt and a series of debts that will precipitate bankruptcy of the national construction companies, as well as the lack of works awarded,” said Pereira.
It is recalled that this debt of the Government with the contractors was contracted over the last decade.
This debt results from the invoicing of works executed in favour of the State between 2009 and the first half of 2018.
At the moment, the concern of the builders is that a considerable part of this debt has not been authorized by the Administrative Court (TA), that is the State has not taken it over.
“We are still working with the Government in order to validate this debt, because the invoices exist,” Pereira said.
The Chinese competition has also contributed to this scenario.
“We look with sadness on the fact that the Government always chooses to award works to Chinese contractors, to the detriment of domestic companies,” he said.
Regarding the “Chinese invasion” of civil construction, Pereira defends the creation of a mechanism that obliges the construction companies of that Asian country to establish joint ventures with Mozambican counterparts.
“They have a lot of knowledge in the big engagements, but this experience is not passed on to Mozambican firms because of lack of sharing in the works,” he said.
“The government should create legal mechanisms for this,” Perera added.
Homes for the youth
However, despite the current scenario showing a blackboard, the Government, through the Fund for Housing Development (FFH), plans to build 35,000 houses for young people, most of which will be undertaken by Mozambican contractors.
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