IMF mission to Mozambique on hidden debt report ends today

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IMF mission to Mozambique on hidden debt report ends today

12:11 CAT | 19 Jul 2017

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The International Monetary Fund, which a year ago froze external support to the country, ends its mission to Mozambique today, nine days after arriving in the country to discuss the audit of the country’s hidden debts with the authorities.

The IMF office in Maputo told Lusa news agency today that the team would conclude contacts with Mozambican officials and issue a press release detailing the results of its work on Thursday.

In the May 10 announcement of the team’s visit, the IMF indicated that it aimed to “discuss the results of the audit with the authorities and possible follow-up measures”, among them the possibility of “working with the authorities to address concerns related to the management of public resources”.

The mission would also “reassess the macroeconomic situation and discuss the authorities’ priorities for the 2018 budget”.

The agenda of meetings between the IMF and the Mozambican authorities has not been announced and the meetings have been held behind closed doors throughout.

Also Read: Unabridged: IMF Statement on the Publication of the Summary of the Audit Report on Mozambique’s Undisclosed Loans

Following the release on June 24 of a summary of auditing firm Kroll’s report on Mozambique’s ‘hidden debts’, the IMF said it found that “information gaps persist, particularly with regard to the use of loans” worth two billion dollars contracted by public companies controlled by State Information and Security Services (SISE) without the knowledge of parliament and international partners in 2013 and 2014.

Also Read: IMF will be decisive in next steps on Mozambique’s debts – EIU

The IMF and donors have made the resumption of direct support to the state budget dependent on the results of the investigations. It is not yet clear what will happen next.

The Kroll consultancy complained of a lack of cooperation from business executives in providing information on the fate of the funds, at the same time indicating that several un-named people were guilty of mismanagement and violation of the law. It said the companies’ plans were “unrealistic”.

To access the PGR summary on the Kroll report n English, you may click here.

Source: Lusa