Hidden debt probe stirs dialogue with creditors, says govt

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Hidden debt probe stirs dialogue with creditors, says govt

3:53 CAT | 22 Jan 2019

Prime Minister Carlos Agostinho do Rosário (file CoM)

Mozambican Prime Minister Carlos Agostinho do Rosário said today that the revelations of the US investigation into state debts “bring new elements to dialogue with creditors”.

He spoke in Maputo during a meeting with media editors, which was the executive’s first position since the arrest of former Mozambican Finance Minister Manuel Chang on December 29 in South Africa.

Rosário said he expected “solutions in the interests of Mozambicans”, under what is known as the “hidden debts” case, worth $2 billion in favor of three state enterprises in fisheries and maritime safety.

Economy and Finance Minister Adriano Maleiane, who attended the meeting, said the revelations “believe that creditors will also have to think”.

On the detention of Chang, the prime minister said this is a procedural matter that is pending before judicial entities and that, in the interest of all Mozambicans, the case “must be clarified”.

“There should be accountability and recovery of assets” for Mozambique, where it turns out to be the case, he added, noting that it is ideal “to wait with serenity for the outcome of this process.”

Rosario also called for vigilance of the population in the face of “those who can take advantage of the situation to jeopardize public order”.

The appeal comes on the day the Mozambican NGO, the Center for Public Integrity (CIP), denounced a police action near its headquarters, ordering the removal of sweaters with the phrase “I will not pay” as part of a campaign against the hidden debts in public accounts.

Police argued it was necessary to remove the t-shirts to avoid disturbances, several respondents reported.

The prime minister said today that “it is in the interest of the State that the Government has not paid the debts since 2016” of the three public companies concerned.

On the other hand, he stressed that their inclusion in the general accounts of the State of 2015 is due only to strict compliance with accounting standards, without hindering subsequent actions.

Carlos Agostinho do Rosario and Adriano Maleiane said that in spite of other important issues, attention should not be diverted from the important “conquest of peace”, in reference to the talks underway since 2017 with Renamo in sequence of the ceasefire started in December 2016.

Chang, three former Credit Suisse bankers and an intermediary of Privinvest have been detained in different countries since December 29 at the request of the US court.

According to the indictment, the hidden debts guaranteed by the Mozambican state between 2013 and 2014 for three fishing companies and maritime security will have served as a basis for a scheme of corruption and money laundering to enrich several suspects.

The government had announced in November a principle of agreement with creditors of debt securities – “eurobonds” corresponding to about 40% of the loans – which it wanted to start making payments in March, holding talks with banks Credit Suisse and VTB over the 60% they borrowed.

Source: Lusa