Mozambique’s currency hits record low

The country’s currency, the metical, dropped as much as 21 percent to an all-time low of 57.50 per dollar, before paring losses to trade 16 percent down at 53.80. It has depreciated 39 percent this year, the biggest decline among 24 African currencies tracked by Bloomberg after Zambia’s kwacha.“We see not a single reason for a Mozambique bond restructuring,” Lutz Roehmeyer, who oversees about 1 billion euros ($1.1 billion) in emerging-market debt, including the so- called tuna bonds, as director of fund management at Landesbank Berlin Investment GmbH, said in an e-mailed response to questions. He bought the debt in August, believing a restructuring was unlikely, with the yields too attractive to skip.“They should honor their commitments,” Roehmeyer said. “Debt levels of the country are not unsustainably high to justify any need for a debt operation.” Standard & Poor’s, which in July downgraded the country’s debt one notch to B- and has Mozambique on a negative outlook, has said any changes to Ematum’s securities would amount to a default. Fitch Ratings predicts the country’s debt to gross domestic product ratio will soar to a decade-high of 62 percent by the end of this year, from 38 percent in 2011. In August, Moody’s Investors Service cut Mozambique’s rating to B2 from B1, citing its deteriorating fiscal and debt metrics.“A downgrade is more likely over the short-to-medium term following the developments pertaining to the Ematum situation,” Hanns Spangenberg, a fixed-income analyst at NKC Independent Economists in Paarl, South Africa, said in an e-mailed note. “Additional factors that could warrant a ratings downgrade include a sustained faltering of economic growth, ill-advised fiscal expenditures beyond the advice of international agencies like the International Monetary Fund and the World Bank, or further sharp depreciation of the metical.”The administration of President Filipe Nyusi is struggling to cope with lower prices for commodities such as coal and gas that is weighing on economic growth, while the weakening currency is adding to the costs of servicing the debt. He also needs to end renewed hostilities between security forces and heavily armed opposition party militants that have claimed scores of lives over the past six months.“Ultimately this government remains unlikely to renege on its guarantee or miss a coupon payment,” Mark Rosenberg, an Africa director at Eurasia Group, said in an e-mailed response to questions. “But the combination of low capacity and difficult ruling party politics will continue to undermine the government’s communication with the market and the pace of any reorganization.”

The government, which planned for the payments in its budget, can accept or reject BNI’s recommendations for changing the terms of the debt, the finance ministry’s Nkomo said. BNI is talking to investors because it cannot make any changes to the debt terms without them, Abdul Jivane, an executive board member of Maputo-based lender, said by phone on Monday. It may not be done with its recommendations by the end of this month as initially planned, he said.“It’s not an easy transaction, its a very complex deal,” he said. “We are working on the process, its an ongoing project.”

Army assaulted

FOR the first time in the history of the Armed Forces of Mozambique Defense (FADM), a network led by senior military is dismantled and held by squandering of public funds of funds.There are 33 million meticais diverted in that scheme not only involves, so far, the three detained military (two men and a woman), but also their family, friends and people in intimate relationships, through unauthorized transfers of large sums of money to their accounts. The diversion of these funds proves, once again, that even with the demarches that the State has impressed with a view to better control of public funds, plunder or greed for the public good is still evident in many employees who deal directly with finances. With the arrest of the military in question and were responsible for finance in the Army Command, one of the three branches of the Armed Forces of Mozambique Defense, under the aegis of the General Staff, under the Ministry of Defence (MDN), enlargement the range of entities that enter into the history of our country, as institutions that registered the largest financial leaks. Among the big-name institutions that have had the same cases may stand out the Interior Ministry, Airports of Mozambique, Ministry of Education and Human Development, among others. Incidentally, the "world of the military" has always been regarded as something apart, something which, according to our sources indicate, have created conditions for the fraud to take place.The "News" was behind this case and here presents the "complete video" fraud that undermines the image of the armed forces, the great call corruption involving senior officers of the Army Command. Are military personnel, ex-officio, he was entrusted with the management of funds and, stealing up of its obligations, diverted an accounting value at 33 million meticais of state coffers.Because those indicted are still being heard by the Anti-Corruption Center Office (GCCC), an organization that sent gather them to the dungeons on Friday, the 20th, we have chosen to omit the names of the eight detainees. His arrest is due to be legalized this week. The group included three high-ranking military officers and five civilians unrelated to the institution whose accounts were used to divert the money.The investigation lasted for one year. Or the intended themselves knew they were being investigated, that after having found that that sector had abnormalities related to the handling of funds. His arrest happened after they were notified to appear before the GCCC to present details on the matter collected on the ground. The News knows that some officials of the General Staff and its own army command tried to derail the work of researchers, saying they did not know the target that were sought by the GCCC. Only later, when they realized that it was really serious, and ran the same risk of them (inviabilizadores) get arrested for obstructing the work of justice, is that targeted were instructed to go to GCCC, where they received arrest warrants. Some of the civilians were collected in their homes.

FAMILY IN THE SCHEME

The central SCHEME fraud was the use of the family that controlled the Army Command's finances. These, so far at number five and all detainees received funds as if they were employees. One of the prominent cases is a woman, residing in the district of Moamba, Maputo province, which, as he confessed to investigators, has a son with one of the military leaders now detained. This saw his account to be used for multiple deposits and large sums. Even received more than 100,000 meticais. In real life, the lady is an agricultural producer in Moamba. The currently held military leaders still used accounts of their children and friends to withdraw funds. There is also the record sheets which have been paid where the names are the military and the numbers of the accounts for which the amounts were transferred belong to their children or friends. In this scheme, enter, according to figures advanced to our newspaper by the experts, people who identified themselves as girlfriends and friends of fraud ringleaders, completely unrelated to the armed forces. 2012 to this part, the names in the payrolls and used for fraud never varied. Are the same. All immediate family members and trusted people.

RECEIVE 120 THOUSAND IN THE 10 PLACE

Considerable Part of payments was through payrolls of the Army Command, where detainees military was responsible for the financial sector. They had full control of the entire financial process and made the leaves according to their liking. They set the money intended to serve.According to information in our possession, the Army Command, including the General Staff of that part, still does not have the financial administration of the State Electronic Platform (e-SISTAFE) located. Payments are also made through the national remuneration system, an old procedure that fills a payroll and leads to the bank for payment. The sheet comes to the names, amounts and account numbers where the value is to be transferred. The maps that were going to the bank were made by the military who controlled the financial sector, where banks were limited only to pay.This is where the leaders took the opportunity to inflate the value of the salary of the people appearing on the fraud scheme, or deposit accounts of their family and friends. There are records of people who should, for example, receive 10 or 15,000 meticais real wage, but in your account fell inflated values ​​on the order of 80, 90 to 120,000 meticais. Some times, the values ​​arrived at 250,000 meticais. After the value is transferred, the Army Command of the financial officers proceeded to the redistribution of funds by the other members of the network. If the value fell on account of a family, then was transferred to the accounts of other officials. In other cases, if they fell on their accounts (the military), then transferred to the accounts of relatives.Researchers from GCCC not exclude the possibility of the existence of schemes using names of some military perished, because only the names indicated by them is that the leaves contained. The ongoing work will seek to bring to justice the bar four other military seen as essentials in diversion scheme of the Army Command funds. We are outside the city of Maputo, with indication are working in two provinces and one to study abroad. All they benefited from much of the fraud amounts.The Central Office for Combating Corruption refused to be satisfied. Researchers continue on the ground in search of more evidence and to track down other amounts that continue to account and know of his whereabouts.

MINISTRY OF DEFENCE pronounced

However, our reporting contacted the Ministry of National Defense (MDN) to have more elements of fraud occurred in the Army Command. In the person of Major Benjamin Chabualo, Press advisor, we got the following reply: "The Ministry of National Defense has nothing to comment on the matter not only contribute to the research goes well. Who can comment on is the institution (GCCC) which is investigating. It should be noted that it is an issue that is being investigated for more than five years "- reacted Major Chabualo, on behalf of the Ministry of National Defense.

MONEY BUY SEVEN MILLION WALLETS

It IS KNOWN that many of our schools are struggling with lack of portfolios problem. The Government has undertaken a campaign to raise funds in order to equip the more than 12,000 existing schools in the country and wallets deficit.However, the value of 33 million meticais diverted the Army Command bills come to address the lack of portfolio problems. Given that the average cost of an internally produced portfolio varies between 3.5 and 4.5 thousand meticais, the amount would buy more than seven million cards and equip about 120 classrooms with an average 60-70 students . That is, the amount relieve over eight thousand students who study this time sitting down.

ACCORDING TO GCCC: WORRYING ASSAULT ON PUBLIC FUNDS

NUMA when the state will sophisticated and consolidating the control measures of public funds via e-SISTAFE (Financial Administration Electronic Platform of the state), cases of deviations not cease. On the contrary, there is a swell of unconscionable assault on public funds.Even without added all cases of misuse of funds registered this year, the Central Office for Combating Corruption, through its spokesman, Eduardo Sumana, talking about many billions of meticais diverted this year by civil servants across the country."The assault on the public purse in recent times has been worrying. We found this from the audits that we and other mechanisms. The way to stop all this is to show our commitment and our commitment we tackle these situations with force. Our appeal is in order for people to be vigilant and denounce these situations to see if we can stop.However, it is not just the Army Command that still uses the wage payment mechanism with old procedures for leaves pathway. The Command of the Air Force, Navy, the General Staff and even the Ministry of Defence still use this mode of payment, ie, did not join the e-SISTAFE (Financial Administration Electronic Platform of the state), which is a very great weakness.Why are not to implement innovative mechanisms of control of public funds, it is suspected that situations similar to those that happened in the Army Command might be occurring in these institutions. So do not be evil perpetuated, the Attorney General's Office will propose to the Ministry of National Defence to come out of the old payment model, via salary slip, to use the e-SISTAFE, which provides greater security in the handling of funds public. "The e-SISTAFE is not implemented in all provinces, but these cases could be safeguarded with sophisticated and updated mechanisms of financial control. The way the procedures are being sent, there is no guarantee that the financial shortfall not continue. By the way, what happened implies is an ancient practice that has come to be continued, especially in the military "- stated Eduardo Sumana, a spokesman for GCCC.

- 33 million meticais gave to buy portfolios for 8000 students studying sitting on the floor.

Metals of Africa suspends operations in Mozambique

Junior explorer Metals of Africa has suspended operational activity at its Mozambique tenements following the death of an exploration geologist, reports Mining Weekly, from Perth, Australia, today. According to the same source, the company said in a statement this week that the employee had passed away overnight. It was noted, adds Mining Weekly, that the death occurred suddenly after-hours at the exploration camp. Metals of Africa has suspended activity on site while it provided support to its remaining employees. The company was currently exploring for graphite in Mozambique and was in the process of defining a Joint Ore Reserves Committee-compliant resource for its Montepuez Central project. 

Price rises could create social tensions in Mozambique

Former prime minister Mario Machungo said on Friday that the increase in prices could create social tensions in the country, and advocated greater collaboration between the banking sector and the Bank of Mozambique "to stabilize the currency".Speaking to Lusa in Oporto on the sidelines of the Portugal Africa Foundation’s “Africa, Ways of the Future" conference, Machungo said he found the price increases worrying, as they "could create social tension"."The metical worries me. It has devalued tremendously recently and this is worrying for all of Mozambique", he said.According to its former president, Millenium bim, Mozambique’s largest bank, could help offset the external shock that the economy is suffering by "adopting monetary policies advocated by the Bank of Mozambique".The bank must "cooperate with the central bank to stabilize the currency," he said.Machungo also said that the bank "has to be prepared to implement the envisaged measures" to reduce credit acceleration, relieving imports and pressure on the metical, but, he argued, "demand cannot be stopped abruptly"."The economy – businesses – need credit to sustain employment and work. The bank should not be pressured to do it in one day; it must have time to do it," he said.Asked whether he agreed with the austerity measures suggested by the International Monetary Fund (IMF) and already implemented by the Mozambican government, Machungo said that he has "little knowledge" of the IMF proposals, but said that he accepts measures aimed at "solving problems of misapplication of funds, of misuse, which do not promote development.

"The IMF said on Wednesday that adjustments and structural reforms to control threats facing the economy of Mozambique were inevitable, while still believing that the situation is temporary."There is need for adjustments to stabilize the macroeconomic situation," IMF representative in Mozambique Alex Segura said during the presentation in Maputo of an IMF report on the economic outlook for sub-Saharan Africa, entitled "Dealing With Dark Clouds."According to Segura, the "external shock" facing the region caused by the slowdown in emerging economies and the normalization of US monetary policy and change in China’s development mode, the drop of the price of raw materials, will require tax adjustments and a credit slowdown in Mozambique, which has "experienced excessive expansion mainly financing consumption and low employment sectors".To contain the impact of the external shock, the IMF advocates Mozambique adopt a policy of moderate inflation, debt sustainability and stabilized metical depreciation levels.Mozambique and IMF in October negotiated a loan of US$286 million (EUR 263 million) to cover the sharp devaluation of the metical, falling foreign currency reserves, rising inflation, reduced foreign investment and foreign aid and rising debt. 

‘‘pose no threat to overall stability of Mozambique”

Answering a question from Radio Moçambique about the collecting of weapons in the hands of Renamo and other unauthorized individuals, the Minister of the Interior, Basilio Monteiro, said on Friday that weapons outside the control of the state in Mozambique pose no threat to the overall stability of the country.The Interior Minister previously said, at the closing session of the Permanent Joint Commission of Defence and Security between Malawi and Mozambique, that at any time the government may come to the conclusion that the compulsory collection of weapons is not justified if people are giving them up voluntarily.The meeting of the Permanent Joint Commission took place in Mangoche, Malawi, this week and, according to Monteiro, reached consensus on maintaining a peaceful environment and better managing the common border.

"culture of non-violence"

Mozambican President Filipe Nyusi on Monday urged the country’s media to reproduce the culture of non-violence, dialogue and permanent debate, in order to contribute towards maintaining and consolidating effective peace.Nyusi made this recommendation when he opened a national conference on the role of the media in combating violence and promoting peace, organized by the Higher Mass Media Council (CSCS), the watchdog body on press freedom and the right to information established under the Mozambican constitution.Nyusi stressed that to block the culture of violence it is never enough simply to use the police or other coercive means.“You have to respond with a culture of non-violence, a culture of dialogue and open and permanent debate”, he said. “This culture must be reproduced day after day in the mass media. We have to speak of peace not just when we are directly threatened. True peace is a culture of listening and constructive dialogue. Each newspaper and each radio or television station should be a classroom where we learn citizenship, where we learn that we belong to the same family”.

Nyusi noted that various forms of violence exist in societies, some more visible, others more hidden and silent. But all should be denounced – including the violence against albino citizens, against women, against widows, against the elderly, or against children. All of these should be a matter of permanent concern to the media. Nyusi urged the media not to stop here, but also to publicise specific cases of exemplary and positive behaviour, such as the countless people who set examples of bravery in the struggle against crime and violence. The media, he continued, should also speak of examples of solidarity and assistance for the more vulnerable strata of society, and divulge the merits of all those who are building a more peaceful, cooperating nation, based on moral values.Because effective unity will lead to a climate more favourable to peace, the President promised that, in his own speeches, he will continue to proclaim the need for a united and cohesive nation.“I shall continue to defend a nation immune to any attempt at division”, said Nyusi. “So that this message becomes part of the life of each Mozambican, it must be converted into specific episodes, into stories of people who have a name and a face”. 

For his part, CSCS Chairperson Tomas Vieira Mario declared that the most important theme on the national agenda is the end of violence in society, particularly politico-military violence, and the restoration of an effective and lasting peace.“We know how relevant the role of the media is”, he added, “since it is through the media that practically the entire narrative of violence and peace reaches the public, in the cities and the countryside, inside the country and abroad. It is through the reporting in the media that public opinion is built about the profile, objectives and strategies of the parties in conflict”. Vieira Mario asked whether it was possible, in a context of pluralism, to have a unanimous editorial line on the media with regard to conflict. “Perhaps not about the conflict in itself”, he continued, answering his own question, “but certainly about what would be consensually desirable for the good of all”. 

600 students miss exams in Zumbo

More than 600 second-graders from Zumbo, Tete province, central Mozambique, did not sit their annual exams due to political instability and the military situation in the region, local authorities announced yesterday.Jorge Vilanculos, director of the Education, Youth and Technology District Services in Zumbo told Radio Mozambique that the students’ parents and guardians had fled to neighbouring Zambia as a result of the threat of clashes between Renamo (Mozambique National Resistance) and the government’s defence and security forces.Vilanculos said that the students affected are mainly in Cassinga and Mbadua and that he has sent out teams to talk to local community leaders about the situation.The political and military instability has also led to school closures and student absenteeism in Tsengano and Moatize, Tete province, and Morrumbala, Zambezia.The renewed tension is caused by Renamo’s refusal to recognize the results of the general elections of October last year and its proposal to rule in the six provinces where it claims victory, threatening to seize power by force if necessary.In recent weeks the worst political and military tension since the Comprehensive Peace Agreement signed in 1992 in Rome ended 16 years of civil war has been sparked by a police operation to disarm the remaining Renamo combatants. However, on Thursday, Mozambican President Filipe Nyusi asked the defence and security forces to suspend ('opt for ponderation') the disarmament process, and the following day, Interior Minister Basilio Monteiro said that the weapons outside state control pose no threat to the overall stability of the country.Renamo leader Afonso Dhlakama has not been seen in public since October 9, following the siege, disarmament and disarmament of his personal bodyguard at his home in Beira, in the centre of the country.

"I'd rather be a tailor"

Artists close to the Frelimo party in the northern province of Nampula are complaining that they have not been paid for their performances over the 45-day long electoral campaign which brought the party and Filipe Nyusi to power.A considerable number of artists, including musicians, say they have still not been paid for performances given during the 2014 election campaign.Belo dos Santos, known as "3C" and with a 12-year artistic career behind him, confesses that he has not returned to the stage because he is disappointed with the government attitude and particularly with Frelimo who he says have deceived him several times."I stopped recording new songs a long time ago. I lost the will. There has to be that will for the musician to continue to give his best. I feel like I am screaming, but to no avail. I prefer being a tailor."The artist says that if he ever goes back to recording, it will be for him and his family.Germano Ernesto, popularly known as Nico, says Frelimo made promises to him too, but they turned out to be false."The campaign is over and we are waiting for the 'big cake' that had been promised. We musicians did not get to make demands about what kind of 'cake', but we understood that this ‘gift’ would be the sound system. When the campaign ended, the current governor of Sofala province, Helena Taipo [then head of the Frelimo electoral office in Nampula City] went off without telling us anything."Nico also said that the former Labour Minister was forced, after a prolonged peaceful strike held last February by 40 musicians, to sign a check for 100,000 meticais (about 2088 euros), to honour the commitments made by the party with the artists who participated in several activities in the run up to elections."I got 4,000 meticais for 45 days work, when usually I get at least 5,000 meticais for a show," Nico laments.The musicians say they will not press Frelimo for payment. Nico explains: "Things are already boiling because – I cannot hide it, we musicians are already being conquered [by the opposition]."Germano Ernesto believes that the Frelimo government has contributed to the depreciation of Mozambican culture precisely because of this lack of incentives. "People no longer listen to Nampula music. The people have started to listen to Angolan music. There was a time when Nampula music was strong, but it declined because they did not embrace the musician himself. Musicians need affection," Ernesto says.Leonel Namuquita, however, Frelimo first secretary in Nampula city, neither confirms nor denies any conflict between his party and the artists, but says that problems are being solved gradually."I believe that the commitments will be met. We cannot deflect attention from the 2015-2019 five-year program. There are priorities. So this is the challenge for the wellbeing of the people of the city of Nampula," says NamuquitaLast week, at least 13 musicians protested outside the Nampula district government building, demanding payment for a show celebrating Independence Day in June. 

1 million dollars to justify

FIFA suspended financial support to the Mozambican Football Federation (FMF) as one of its 210 affiliates worldwide due to lack of reports which justify the funds allocated in the year passado.O fact was made known yesterday in Maputo, the senior manager of development programs for Africa that institution which governs world football, Zelkifli Ngoufonja (1), at the end of a three-day visit to the country, during which learned about the functioning of the FMF, and meet their new cast. 

According Ngoufonja, as is mandatory rules, FIFA requires the annual statement of accounts and activities to its members, and must be submitted by 31 March each year, the FMF did not. Lately, FIFA requires not only the reports of the fund that allocates, but also of those who canvass their members during the year. "Now we require the reports of global accounts, not only the money we provide. Mozambique still not given us their supporting, so we suspended the funding. The money for the FMF exists, but requires only the clarification of last year's accounts, "explicou.Este year FIFA has allocated one million and fifty thousand dollars each associated with a substantial increase and that according to the Software Development Manager for Africa is justified by the dispute of qualifying for the World-2018, which will take place in Russia. "In all, we added $ 500,000, plus 300,000 for the bonus. Annually generally FIFA allocates $ 250 thousand to affiliates, "continuou.

The face this embarrassing scenario for the FMF, in particular, and for the national football in general, the new cast was obliged, first, to do an internal audit, the results of which the chairman of the Board, Alberto Simango Jr.(2), declined to reveal and subsequently external audit was requested. "We hope the results of this audit, and all believe that will come out soon. After that, and if all is well, we will release the funds for the FMF, "insisted Zelkifli Ngoufonja, raking that FIFA wants to continue to support our country in the development of football in its various aspects.

Good weekend