Mozambican Administrative Court criticises General State Accounts

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Mozambican Administrative Court criticises General State Accounts

1:40 CAT | 30 Jun 2016

Mhoje_tribunaladministratiodemaputo_photo_jpg

Soares da Costa (File photo) / Administrative Court in Maputo

The Administrative Court of Mozambique believes that several state institutions did not pay revenue due to the treasury in 2014, made unbudgeted investments and incurred in inappropriate expenses.

In an opinion on the General State Account of 2014, that the Assembly of the Republic of Mozambique began debating yesterday, the Administrative Court states that not all the revenue had entered the Treasury Single Account, as required by Mozambican financial legislation.

“All public resources should be centralised with a view to greater management capacity, within the principles of effectiveness, efficiency and cost-effectiveness”, the court, which also functions as the country’s Auditors Court, said.

The opinion goes on to say that, in the audited entities, there are shortcomings in the organisation of files, which prevent the easy location of documents giving proof of the revenues collected and expenditures undertaken.

The Administrative Court also notes in the 2014 CGE analysis budget allocations which were not requested by the supposed beneficiary institutions and reallocations of funds from one allocation to another without complying with the procedures and limitations of statutory law.

During the parliamentary debate, the majority Frelimo (Mozambique Liberation Front) bench proposed the approval of the state accounts, citing progress in preparing the document.

“Parliament should recognise the efforts and achievements of the government in the preparation of the accounts, despite certain imperfections that still exist,” Frelimo deputy Moreira Vasco said.

Renamo (Mozambican National Resistance), the main opposition party, called for the rejection of the accounts, criticising the absence in the document of the so-called hidden debts incurred by the government between 2013 and 2014.

“The country has become indebted secretly, and these loans are not included in this account, making it more clear than ever that the government is not complying with the recommendations of the Assembly of the Republic or the constitution in relation to the rules that must be followed in the preparation of the General State Accounts,” said Antonio Muchanga, the main opposition party deputy.

The Democratic Movement of Mozambique (MDM), Mozambique’s third-largest parliamentary grouping, also criticised the omission of guarantees that the Mozambican government has provided in favour of debt taken on by public companies.

“This General State Account is fallacious. It covers up the largest financial fraud in the history of the country. It fails to make mention of the loans which structured the bankruptcy in which the country now finds itself,” MDM’s Fernando Bismarque said.

Source: Lusa