Mozambique: Government sets end-November deadline for debt claims by suppliers

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Mozambique: Government sets end-November deadline for debt claims by suppliers

12:25 CAT | 29 Oct 2020

File photo: Lusa

Mozambique’s Ministry of Economy and Finance (MEF) has set the end of November as the deadline for claims for money owed by the state for goods and services contracted between 2007 and 2017, it announced in a statement.

“The Mozambican government decided to set the deadline of 30 November of this year as the limit for complaints from suppliers of goods and services for the period from 2007 to 2017,” the document reads.

The General Inspection of Finance, it states, has since 2018 been carrying out “audits to validate the debts contracted by state institutions” in the period in question, leaving aside “the validation of new debts not declared during the previous phases”.

The deadline is set “in this context, with a view to concluding” the process, “after which the State will not be responsible” for claims, the statement concludes.

The government has cleared around 19 billion meticais (€221 million) of debts claimed by suppliers in the period in question, of which around one quarter were not validated, according to the last MEF report of December 2019.

Suppliers of goods and services with claims of up to 60 million meticais have received the full amount of money owed, while creditors entitled to more than that amount received 10% of the remaining debt, with the remaining 90% being securitised.

According to the same report, debts owed to 1,044 suppliers (87.3% of the total) amounting to 7.27 billion meticais were settled and the remaining 10% – 842 million meticais – was paid to 152 suppliers.

In January the remaining debts to suppliers with debts of more than 600 million meticais were securitised, covering 22 suppliers, amounting to 3.6 billion meticais.

Source: Lusa