Mozambique is not yet ready to move forward with audit – IMF

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Mozambique is not yet ready to move forward with audit – IMF

3:17 CAT | 15 Jul 2016

International Monetary Fund spokesman Gerry Rice yesterday again emphasised the need for the Mozambican government to order an independent, international audit to assess the companies benefiting from the hidden loans not reported to financial agencies and donors.

“In our view, the government is not ready to move forward with this audit. This is the point where we currently find ourselves,” Rice said, adding that the report of the Fund’s mission to Maputo in late June is not yet complete.

“We welcome the government’s investigation into these previously concealed loans. The Fund team stressed the need for further action to be taken. In particular, we urge that an independent, international audit should be made of hidden loans of companies Ematum, ProIndicus and MAM.”

On 16 June, an IMF delegation arrived in Maputo to begin a fact finding process related to the previously undisclosed loans totalling US$1.4 billion dollars (EUR1.25 billion). The delegation, which was in Mozambique until June 24, verified the facts related to the hidden loans and assessed the macroeconomic situation in the country.

The mission, Rice said, was not intended to discuss financial aid.

The revelation of government-guaranteed loans contracted between 2013 and 2014 led the IMF to suspend the second installment of a loan to Mozambique and delay a mission to Maputo originally scheduled for April this year.

For the full video of Gerry Rice statements you may go here:

http://www.imf.org/external/mmedia/view.aspx?vid=5035506838001

Source: Lusa