EU ambassador and Mozambican Attorney General analyse debt and crime

Login

Register

http://www.clubofmozambique.com/

EU ambassador and Mozambican Attorney General analyse debt and crime

4:11 CAT | 14 Jun 2016

VOA / Sven Von Burgsdorff

The ambassador of the European Union in Mozambique, Sven Von Burgsdorff, and Mozambique’s Attorney General, Beatriz Buchili, discussed the problem of Mozambique’s public debt, corruption, violent crime and the wave of kidnappings afflicting the Mozambican capital especially, at a meeting in Maputo yesterday.

The meeting took place a few days after the head of the European Union mission met President Filipe Nyusi, with whom he discussed the same topics.

“It is essential to deliver the maximum degree of transparency to the Mozambican public and the international community so that confidence can be restored,” von Burgsdorff said at the end of the meeting.

Following the opening of court proceedings by the Attorney General’s Office to verify the legality of debts hidden in public accounts, von Burgsdorff said the group of countries that gives direct state budget support will assess the process in time, whereas it is up to Mozambican government introduce measures to restore the confidence of international partners immediately.

“This is not only to restore trust with donors, but with the international community and financial markets too,” the diplomat added, reiterating that the European Union continues to support the country in other areas of development.

According to von Burgsdorff, the EU donor countries were continuing to assess the resumption of aid to the country, adding that, for now, the group was awaiting the arrival of the expected International Monetary Fund mission.

Mozambican Prime Minister Carlos Agostinho do Rosario in April acknowledged the existence of previously undisclosed debts of US$1.4 billion (EUR 1.25 billion), which the government justifies on national security grounds.

The revelation of government-guaranteed loans contracted between 2013 and 2014 led the International Monetary Fund to suspend the second installment of a pre-agreed loan to Mozambique and cancel a visit to Maputo.

The G14 group of 14 donors from the state budget also suspended its payments, a move followed by the United States, which announced that it would review its support and, like the United Kingdom, has demanded an international forensic audit.

The Mozambican government explained to parliament the nature and scope of undisclosed debt of more than EUR1 billion contracted by the previous executive between 2013 and 2014 on Wednesday and Thursday of last week.

With the revelation of new loans, Mozambique’s public debt now stands at US$11.66 billion (EUR10.1 billion), of which US$9,890 million (EUR8,6 billion) is external debt.

In addition to public debt, the other topics of the meeting between the diplomat and the Attorney General of Mozambique were corruption, crime and the possibilities of support the EU may provide to the institution.

Source: Lusa / VOA