Mozambique: External audit of disaster management fund following controversies

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Mozambique: External audit of disaster management fund following controversies

11:34 CAT | 21 Apr 2023

File photo: Lusa

Mozambique’s National Institute for Disaster Management (INGD) plans to conduct an external audit of the Disaster Management Fund(FGC) after it was the target of accusations and criticism of embezzlement, the institution announced on Thursday.

In a contract notice published today in the Mozambican daily newspaper Noticias, INGD said it wanted a “professional opinion on the financial position of the FGC [Disaster Management Fund], with respect to the funds received and expenses made” in 2021 and 2022.

The external audit also aims for “a professional opinion on the effectiveness, efficiency and ‘economy’ in the contracting of public works contracts, supply of goods and provision of services to the State”.

The work includes the identification of weaknesses in the areas that will be covered by the analysis of the accounts.

“The external financial audit of the Disaster Management Fund should cover all activities and expenditures financed by the government of Mozambique and development partners in the period from 1 January 2021 to 31 December 2022,” the announcement said.

The fund’s valuation must follow public accounting standards of the Mozambican government and international auditing standards, the document said.

Mozambique’s attorney general’s office announced in March it had filed criminal proceedings against a coordinator of the FGC and four other public officials, as “there are strong indications that crimes of economic participation in business and abuse of office or function were committed,” and that they were suspected of having “fraudulently signed” contracts for the supply of goods and services.

In 2022, the World Bank froze the disbursement of $5 million (€4.7 million) to the FGD and demanded the repayment of 32.5 million meticais (€480,000) “until INGD presented an acceptable action plan to ensure the strengthening of its procurement system,” the non-governmental organisation (NGO) Centre for Public Integrity (CIP) said in a statement recently, based on information in its possession.

Following these allegations, the prime minister, Adriano Maleiane, said that “there was no dispute with the World Bank,” adding that “this matter has been resolved”.

The Mozambican National Resistance (Renamo), the main opposition party, also accused the INGD of running a “corruption machine” that takes advantage of natural disasters and international donations to “feed the insatiable appetites” of elites linked to power.

Source: Lusa