Crisis finally hits state-owned enterprises: TDM delays wages

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Crisis finally hits state-owned enterprises: TDM delays wages

11:25 CAT | 03 Nov 2017

The economic and financial crisis that we have been plunged into since the discovery of illegal debts (let us not be fooled by the “global conjuncture”) seems finally to have reached state-owned enterprises. On Monday (30-10), Telecommunications of Mozambique (TDM) informed their workers that their wages would be delayed.

By means of an internal letter, to which A Verdade was granted access and which has been confirmed as to its authenticity, the TDM Board of Directors informs its employees that the payment of salaries for the current month of October 2017 [the 30th of each month] is “slightly behind schedule, due to the limitations of cash availability”.

This is probably the first time the payment of salaries at this iconic and oldest Mozambique telecommunications company has been delayed. TDM, 80 percent owned by the Mozambican state, is in the process of merging with Moçambique Cellular (Mcel), mainly because of the financial situation both have been facing for some years.

A Verdade revealed last June that TDM had reported losses of over 510 million meticais in the 2015 fiscal year and equity had fallen to 4.3 trillion meticais from 4.8 in the previous year.

From an analysis of the companies Report and Accounts (the last one before the merger started), @Verdade found that Mozambican Telecommunications had accumulated medium and long-term bank debt amounting to 1.9 billion meticais plus other financial liabilities of more than 1.6 billion meticais. In order to maintain its operating deficit, TDM had suspended payments to suppliers of debt amounting to 1.3 billion meticais in 2014 and the company closed the following year, 2015, with debts of 1.6 billion meticais.

Source: A Verdade