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The Mozambican Public Integrity Centre (CIP) accuses the government of having taken out more loans without the knowledge of parliament. Knowing how money is used is of international interest, an expert says.
In a new report released last week, the CIP says the Maputo government contracted more loans without the knowledge of parliament in 2015 and 2016, and that lack of transparency in the management of public resources in the country remains despite international reprimands and alerts.
In the analysis entitled “Government continues to borrow without transparency”, the CIP states that the Mozambican authorities borrowed 4.4 billion meticais (EUR 61 million) for the National Road Administration (ANE) and 3.1 billion meticais (EUR 43 million) for Beira Fishing Port from the EximBank of China.
In an interview with DW Africa, Debt Specialist and Executive Director of the Mozambican Group of Debt (GMD) Eufrigina dos Reis Manoela explained the origin of these debts, warning that international donors should do more than treat such debts as a problem that affects only the Mozambican people.
DW Africa: What are these debts and where do they come from?
Eufrigina dos Reis Manuela (ERM): According to our observation and analysis, these situations arise because the legal norms of borrowing have not been observed. All public debt must go through parliament. At no time can the government contract a public debt without following the legal procedures that, in this case, are the responsibility of parliament. That this is happening already systematically is a sign that our legislature is not functioning properly.
DW Africa: Who is responsible for these debts? Do you believe they will be discovered?
ERM: We do not know yet who contracted these debts. This is something we are still pursuing as civil society in Mozambique: insisting that the people who contracted these debts are identified, so that they can also be held accountable. If this does not happen, Mozambique will continue to contract ‘hidden debts’. We will fall into disrepute, not only internationally, but above all nationally. Citizens will no longer be able to rely on executive power, much less on legislative power. This is very bad.
DW Africa: How may Mozambican society react?
ERM: If society does not believe in its own government, then it will not cooperate. And if it doesn’t cooperate, that is very bad for the country’s development. It means that the government could go bankrupt. The government and parliament have the possibility of putting things right.
DW Africa: If these debts are confirmed, how should international donors react?
ERM: If donors are committed to development and governance, they should cooperate with the Mozambicans who are warning [about these cases]. Donors shouldn’t remain unmoved, thinking this is purely a Mozambican issue. In fact, it has to do with the money they invest in the country, how it is used. For example, what is the impact of this money on Mozambique, from the point of view of the development of the citizen? If they are not concerned, I think the international community itself will be the worse for it.
DW Africa: Do you think that international partners should question the use of funds more?
ERM: Exactly. In bilateral meetings with our partners we have even heard it said: “This is your business”. This is not the case, because if money comes from outside, it comes with responsibilities. It is money from people from other countries, who are contributing to these financings. We are therefore waiting for the rights of the population.We are receiving this money and we will have to pay a debt, which will mean sacrificing the priorities that the Mozambican people would like to see addressed.”
Also Read: World Bank says Mozambique must restructure public debt
Also Read: CIP accuses government of taking out new ’hidden loans’
Also Read: There are no more hidden debts – Maleiane
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