Mozambique: Bank, insurance finance chiefs worried about red tape, scrutiny
The Attorney General of the Republic of Mozambique has announced that it will seek the financial accountability of managers involved in the hidden debts case. But for the Public Integrity Centre’s Baltazer Fael, criminal accountability is still lacking.
A recent communique from Mozambique’s Attorney General’s Office (PGR) states that “on January 26, the Public Prosecution Service filed a complaint with the Administrative Court on the financial accountability of public officials and state-owned companies involved in the management of contracts of financing, goods and services supply”.
The PGR however does not mention members of the government who authorised the transactions, and much less refers to criminal accountability on the part of those involved in the case of hidden debt valued at EUR 1.8 million Euros incurred between 2013 and 2014.
Baltazar Fael, a researcher at the Public Integrity Centre (CIP) in Mozambique, hopes the case will not stop here. In an interview with DW Africa, he criticises the PGR for proposing in this communiqué to have a say on the issuance of state guarantees to avoid further public debt scandals.
DW Africa: The PGR only talks about the accountability of corporate managers, without mentioning the members of the government who authorised the famous debts, much less criminal accountability. Was this not to be expected of the PGR in this case?
Baltazar Fael (BF): I think things will continue to revolve around the issue of legal secrecy. The criminal process is under legal secrecy. For the administrative question, in this case, of accountability, it does not seem to me that the question of legal secrecy is pertinent. The PGR, in my opinion, has done its job: to discover infractions of a financial nature. As it has no competence to deal with these matters; it has submitted them to the competent body. The situation now passes to the Administrative Tribunal, which can give information on who these people are. According to the PGR, there are indications that they have committed financially responsible crimes. There was an exchange of proceedings between the two institutions.
DW Africa: The PGR also wants to have a say on the issuance of state guarantees. Is this within its competence?
BF: The issues that come in the communiqué – about the debts, that this was done by the Assembly of the Republic or by that other organ – I think that they do not fit within the PGR’s sphere. The Attorney General’s Office put them there just to fill out the communiqué. These recommendations were produced by the Parliamentary Commission of Inquiry of the Assembly of the Republic, by the Kroll consultancy, and should be submitted to the competent bodies: the Assembly, to review the legislation, and to other entities. This is not the responsibility of the PGR because the PGR does not make laws. It should not interfere in this matter, it should limit itself to its function, which is prosecution – explaining what is happening in criminal matters with these people involved in the process of hidden debts.
DW Africa: The PGR further defends that some laws are improved. Isn’t this a non-issue? Even the laws in force are constantly violated.
BF: I think this is a problem that has been raised exactly because of the debt issue, where we are trying to find out where there were gaps in legislation that allowed public servants to do what they have done. In fact, there is enough material there to deal with on this matter. Our legislation is clear on how to proceed. It is not a problem of lack of legislation. There is a clear disrespect for such legislation. We have to improve in some regards; this is normal. Any law in force for a certain period of time will lose its efficacy against particular acts, because those who do these things will adapt their way of doing things. But it is clearly not a case of gaps in the legislation. Clearly, the PGR is exploiting this [only] as a means of sustaining its statement. This is not a matter for the PGR.
DW Africa: What does the CIP expect from PGR in terms of its competencies?
BF: We hope the PGR does not stop here. In one of the first PGR communiqués, the prosecutor clearly said that there were indications of financial infractions, but also raised criminal considerations. We hope that the PGR is not trying to put us to sleep but will continue to seek to establish the criminal accountability of those involved in this process. We are monitoring this and we will be tireless in making society aware of the need to clarify this case. This case shouldn’t stop at financial accountability; it must seek to ascertain criminal liability.
DW Africa: Do you think the PGR wants to pull the wool over Mozambicans’ eyes?
BF: We have been getting used to that. Some time ago, it came up with a statement about the arrest of those involved in the Embraer case, rather to shake the dust off and reposition itself. These cases of corruption with international dimensions have to be solved, but society wants to know, because this directly affects the life of the population. The cost of living rises because the country no longer receives international support in terms of funding. Donors think this issue has to be clarified. When we get a stomach ache caused by hunger, we cannot sleep. So: the people will not sleep, they will want to know who is involved. We, as a civil society, will continue to do our work and the PGR, as a prosecuting body, has to tell us what has in fact happened in this process.
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