Mozambique: Only 2.4 million meticais transferred to communities in Q1, out of almost 90 million planned – Carta

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Mozambique: Only 2.4 million meticais transferred to communities in Q1, out of almost 90 million planned – Carta

3:25 CAT | 26 Aug 2020

Picture: Mozambique Mining Cadastre Portal

Within the scope of Law No. 20/2014 (Law of Mines) and Law No. 21/2014 (Law of Petroleum), both of 18 August, the Government must disburse 2.75% of revenues generated by mining and oil extraction in programmes aimed at the development of communities in the areas where the enterprises are located.

For this year’s State Budget, the Executive had determined to transfer 88 million meticais to the communities. However, according to the Budget Execution Report for January to June 2020, in which a transfer of 50% of the predefined amount was expected, the Government disbursed only 2.8%, that is, only 2.4 million meticais.

Looking at the reality of communities’ lives, with megaprojects exploiting mineral resources in the midst of a pandemic crisis, 2.4 million meticais out of 88 million is not very significant.

The Ministry of Economy and Finance (MEF), the body that prepared and released the report last week, explains that the low level of execution in transfers to communities was occasioned by the late approval of the 2020 State Budget, in April of this year.

“However, according to data from e-SISTAFE, financial schedules were made in the amount of 67.3 million meticais, whose execution will be reflected in the third quarter,” the MEF affirms.

The MEF’s justification is questionable because, in 2019, the Government had planned to disburse 83.4 million meticais for communities, but, in the first semester, also transferred an equally negligible amount, as it has this year, that is, only disbursed 1.2 million meticais.

This perhaps reveals a paucity of concern on the part of the Executive when it comes to improving the lives of the communities where mineral resources are exploited.

Furthermore, despite the total of 141,873.2 million meticais of Government expenditure carried out in the first half of 2020, the communities received much less than planned and the fact remains that, as evidenced in another article published a few days ago, spending on salaries and wages soared, in a year in which there was no salary rise in the civil service.

Of the total expenditure, personnel expenses were made up of 62,287.8 million Meticais, corresponding to 50.2% of the annual budget, with salaries and remunerations reaching an achievement equivalent to 50.8% and the remaining expenses with the staff 36.9%. This figure is much lower compared to the 56,279.9 million meticais spent in the first half of 2019, in which salaries and wages stood at 54,039.5 million meticais and other expenses with staff at 2,240.4 million meticais.

To explain the growth in personnel expenses, it should be noted, the MEF Report points to the introduction of several planned and unplanned administrative acts, namely promotions, progressions and career changes, among others, which occurred in the second half of 2019 and whose impact was reflected on current year’s pay slips.

By Evaristo Chilingue

Source: Carta de Moçambique