Mozambique: Quelimane Municipal staff demand five months of wage arrears - Watch
File photo: DW
“Honouring commitments is not just a matter of technique, it is a matter of public ethics. Recognizing that we owe our suppliers and that they need these resources to continue providing goods and services to the state,” Daniel Chapo said during a visit in Maputo.
Mozambican president Daniel Chapo on Tuesday demanded “transparency” in the payment of invoices, calling for clear criteria, recognizing delays and debts to suppliers of goods and services to the state.
“Honouring commitments is not just a matter of technique, it is a matter of public ethics. “Recognizing that we owe our suppliers and that they need these resources to continue providing goods and services to the State,” said Daniel Chapo during his visit to the Ministry of Finance in Maputo.
For the head of state, “sensitivity” and “clear criteria” are needed in the payment of these debts: “The people are expecting this transparency.”
“We have to pay off what we owe and prevent the emergence of new debts as much as possible (…), it is a matter of honour for the Mozambican state. This is how we restore the trust of our suppliers in the state,” he stated.
Daniel Chapo also explained that if the government does not pay its suppliers, “[…] they will reach a stage where they will not have the resources to pay their suppliers and continue to supply goods and services”.
Last year, Mozambican business people called for the inclusion in the State Budget of an annual allocation just to pay overdue invoices, allowing them to “reduce losses” and “improve the business environment”.
The Confederation of Economic Associations of Mozambique (CTA) is calling for the State Budget to include an annual allocation of US$50 million (€46 million) over the next five years to pay overdue invoices, given the constraints experienced by companies.
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