95.5% of its annual budget

The defence sector spent 95.5% of its annual budget between January and June this year, according to the Budget Execution Report published last week by the Ministry of Economy and Finance (MEF).

The sector spent 10.183 million meticais in the first half of this year, out of the 10.668 million allocated, which could leave it without sufficient funds to maintain operations.

The spending represents a growth of 34.4% compared to the same period of 2019, in which, from January to June, the sector consumed 5.177 million of the 8.471 million meticais planned (61.1%). In fact, the document states that the first “pillar” of the Government’s Five Year Plan (PQG) – strengthening democracy, reconciliation and the preservation of unity and national cohesion – has already consumed 84.5% of its annual budget, or 22,517.8 million meticais of the 26,634.9 million allocated. In the first six months of 2019, this pillar consumed 31,858.6 million of annual 76,294.8 million meticais, which corresponded to 41.8%.

Terrorist attacks in the province of Cabo Delgado since October 2017 and the military attacks in the central area of the country since August 2019 may be the reason for the expenditure of almost all the sector’s annual budget. The Defence and Security Forces (FDS) have been put to the test this year by recurring invasions of the district headquarter towns of Mocímboa da Praia (at least three times), Macomia and Quissanga, in which terrorists destroyed public and private property and assets, in addition to seizing diverse war material.

448 million dollars

Donors and financing agencies have so far disbursed 448.54 million dollars in response to the Mozambican government’s request for 700 million dollars to meet the needs arising from the Covid-19 pandemic. A document from the Ministry of Economy and Finance, dated 25 August, gives a detailed breakdown of the money received so far, and what it is being used for.

The largest sum received, amounting to 72.23 per cent of the total, is a loan of 324 million dollars from the International Monetary Fund (IMF). Of this sum, 309 million dollars is from the IMF Rapid Credit Facility, which has gone into the Mozambican state budget to compensate for the loss of fiscal revenue due to the poor economic performance arising from the impact of the pandemic.

A further 15 million dollars of the IMF funds is debt relief, and has been channelled to the Ministry of Health. Another 15 million from the Fund has been channelled to the National Investment Bank (BNI) as part of a line of credit to provide loans to micro-businesses. The government hopes that eventually this line of credit will reach 160 million dollars, but to date only the IMF has provided any funding. The BNI’s Special Credit Committee has so far approved 45 loan projects for a total of 9.87 million dollars. The African Development Bank (ADB) has provided a grant of 40 million dollars in direct budget support, to be used in line with budgetary requirements.

The World Bank has provided 20 million dollars as “transfers to households”. This is intended to increase the number of households benefitting from the allowances distributed through the National Social Welfare Institute (INAS). The government hopes to increase the number of beneficiary households from 592,179 to 1,695,004, an increase of 186 per cent. For this, the government needs 240 million dollars, but so far only the funds from the World Bank are available.

The government’s appeal included 100 million dollars for the health sector to acquire prevention and protection equipment, and so far the partners have provided 79.5 million dollars. In addition to the IMF’s 15 million dollars, the World Bank has provided 21 million, the Global Fund to Fight AIDS, Tuberculosis and Malaria 15.7 million, and the United States government 15.3 million. The rest comes from 13 other donors. There are promises from a variety of other potential donors, listed exhaustively in the Ministry’s document. If all these pledges are honoured, the Mozambican government will receive, not 700 million dollars, but 808.4 million.

Mozambique: Fisheries on maximum alert

The Mozambican fisheries authorities are on maximum alert following an outbreak in Malawi in July of the fish disease epizootic ulcerative syndrome (EUS), also known as red spot disease (RSD). EUS is caused by the fungus Aphanomyces invadans, and the mortality rate in aquaculture can be 100 per cent. The director of the Aquaculture Research Centre, Rafael Rafael, sounded the alert at a Maputo press conference on Thursday.

EUS, he said, was first discovered in Japan in 1971, and has spread to various parts of the world, including the Zambezi Basin. For a long time, EUS outbreaks in the Zambezi Basin seemed restricted to Botswana (where it was diagnosed in 2007) and Zambia, but now it has spread to Zimbabwe and Malawi. “Probably it’s our turn now”, said Rafael. Rivers could easily carry the disease from Malawi into Mozambique. Rafael said the marketing of fisheries produce has been banned in the affected area in Malawi, and the Malawian authorities fear the livelihoods of up to 55,000 fishermen could be affected

The Malawian Ministry of Agriculture on 29 July announced an outbreak in Mchinji district. This followed reports from Mchinji District Fisheries Office where deaths of fish species such as catfish, tilapia and straight fin barbs were noted. The dead fish had ulcerative lesions on their skin typical of EUS. The Malawian government’s measures to prevent further spread of the disease include the suspension of the transport and sale of live or dead fish around the Bua river system and surrounding fish farms, and the suspension of fishing from the infected rivers and dams. Communities have been advised to avoid carrying water from the infected rivers and fish ponds to other water bodies.

In its advanced stage the disease causes ulcers with pus, but in the initial phase it is expressed through the appearance of red spots on the skin. Since the 2007 outbreak in Botswana, the United Nations Food and Agriculture Organisation (FAO) has been financing studies of the disease and how it can be controlled. Mozambique benefitted from an FAO project which, at the time, showed that EUS did not exist in Mozambican waters. The Mozambican fisheries authorities mounted an epidemiological surveillance system, to check on whether the disease had reached Mozambique. If extensionists detected any fish with the telltale red spots, they were to inform the authorities immediately.

 

 

Rafael said this system has now been reactivated. Extensionists have been warned of the possibility of EUS spreading into Mozambique. “If they see any fish with injuries, they must take samples”, he added. If an outbreak is confirmed, he said, the first thing to do is isolate the area, prevent any further fishing in infected waters, and ban the use of fishing gear that may have been in contact with the fungus. “Fishing in any lake contaminated with the disease must be avoided”, stressed Rafael, “and we must also prevent the same nets from being used in other waters. Otherwise we will just be spreading the infection”. The disease is seasonal, and Rafael said that, after some time, it might disappear naturally. EUS kills fish, not people – nonetheless, the rot caused by the fungus might attract bacteria damaging to human health, and so 

Moza Banco wins Best Regional

 

Mozambican Moza Banco won the award for Best Regional Bank in Southern Africa and Standard Bank won in the category of the best deal on infrastructure, with the financing of $85 million for the port of Maputo. During the Awards organised by the African Banker magazine, awarded annually as part of the Annual Meetings of the African Development Bank (AfDB), which are taking place this week in virtual format due to the pandemic, the jury chose Moza Banco as the best bank in Southern Africa.

Moza Banco has the third largest branch network in Mozambique and is the fifth largest Mozambican bank in terms of total assets, according to the most recent ‘ranking’ of the sector, published at the end of last year by the Mozambican Association of Banks (AMB) and KPMG, which shows that its majority shareholder is Kuhanha – Sociedade Gestora de Fundos de Pensões, controlled by Banco de Moçambique. Among the various categories they highlighted are also the Bank of Trade and Development as Bank of the Year and Herbert Wigwe, of Access Bank of Nigeria, as Banker of the Year, having awarded the Infrastructure Business of the Year award to the financing of the dredging of the port of Maputo by Standard Bank. This $85 million (€71.8 million) project covered an area of 76 kilometres and the removal of 14 million cubic metres of sand and sea rocks, according to Standard Bank’s website, which notes that with this operation to deepen the access channel, the port now can receive larger vessels.

“Contraband only increases poverty”

 

Smuggling between Mozambique and South Africa, India and China, among others, costs the country about US$2 billion a year, close to 12.6% of its annual gross domestic product, a doctoral thesis written by the president of the Tax Authority (AT), Amélia Muendane, claims. Muendane’s thesis unveils the “smuggler’s web” disadvantaging the Mozambican state.

“Smuggling consumes a significant part of our budget and Gross Domestic Product. The data indicate with a margin of 5% of standard deviation that smuggling is above 12%. We have ascertained that in terms of budget it is over 40%. Without smuggling, Mozambique would already be self-sufficient or have a surplus budget since 2006,” the president of AT writes. With neighbouring South Africa, India and China the most active smugglers of Mozambican products, with an emphasis on wood, seafood and precious stones, Muendane advocates more incentives and the involvement of the whole society in the fight against the trade. “There is no particular country that is the biggest thief in the economy, but we see that, from 2014, there is a tendency to smuggle from Germany. It is necessary to pay attention to these emerging [in terms of smuggling] countries,” Muendane underlines.

Former head of state Joaquim Chissano, a prominent figure in the dissertation, says that Amélia Muendane’s thesis is the starting point for change and reform.

“It is an example of the progress and development of Mozambique. What we need for Mozambique is to develop men and women. We have to fight poverty and smuggling can contribute to increasing poverty,” Chissano says. In turn, former prime minister, Luísa Diogo, praised Muendane’s courage.

“I was in love as soon as I saw the theme and I couldn’t miss it. A topic (contraband) that leads us to reflect very deeply on what this Mozambique is capable of with what it has. One of the great conclusions that she (Amélia Muendane) draws in her thesis is that, in this issue of contraband versus the development of the economy, it would be possible for Mozambique to cover its budget with its own revenues if it did not have contraband,” Diogo notes. The president of the Mozambican Tax Authority obtained her PHD with distinction. Muendane singles out electronic commerce as the major challenge in the fight against smuggling.

 

First wind power plant

 

Work for the construction of the first wind power plant in Mozambique is currently underway in Namaacha district in the southern province of Maputo, the country’s national radio station RM reported on Monday. The private infrastructure, worth about 280 million U.S. Dollars, is expected to have the capacity to produce an average of 120 megawatts of energy for the state electricity company EDM to distribute when it goes into operation three years later, said the report.

“Parts of the new plant are already being built and construction will take about three years to end. We will connect the Boane substation to EDM, which will distribute it to the final consumer,” said the manager of the project Pedro Coutinho on the radio.

ALSO READ: Mozambique: Wind farm technical study to go out to tender

Watch: USTDA supports wind energy in Mozambique through U.S. solutions

The manager added that the new plant will provide clean, renewable, and sustainable energy to the country. Meanwhile, it will create more than 700 new jobs, most of them for local individuals, as from 2021.

President Nyusi meets Bishop of Pemba

Filipe Nyusi  today held a meeting with the Bishop of Pemba Dom  Luiz Fernando Lisboa, the Mozambican Head of State announced  in a brief note released on Monday on his Facebook page. “A good meeting, judging from the information shared,” reads the note.

The President’s note reads as follows.

“Compatriots

“This Monday, in the city of Pemba, Cabo Delgado province, I had a meeting with Bishop Luiz Fernando Lisboa.

“It was a good meeting, to be judged by the rich information shared, given that the Catholic Church is rooted in the province. Dialogue with all the living forces of society continues to be our greatest  governance focus.”

ALSO READ:  Watch: Pope lauds Mozambique bishop slammed for helping insurgency victims – AFP

Cabo Delgado: “Bishop Dom Luíz Lisboa is tranquil”, despite accusation of being a supporter of insurgents, missionary says – Listen

Hijackers use bank accounts abroad

An investigation conducted by the “Carta” reveals that the assaults, kidnappings and murders, which are carried out in broad daylight, involve, some of them, members of the National Criminal Investigation Service (SERNIC), police officers of the Republic of Mozambique (PRM) , businessmen, politicians, prisoners and even Mozambicans based in foreign countries. According to the “CARTA” source, involved in the investigations, the subject is complex and generates millions of US dollars annually. In fact, the source confided to us that businessman and philanthropist Rizwan Adatia decided to leave the country, due to the extortion he was being targeted. 

Remember, Adatia was kidnapped on the 30th of April and released on the 20th of May, in an operation carried out with the presence of journalists and with the Director of SERNIC traveling to the “operational theater” in high heels . However, the source said that, even after his supposed release, the businessman continued to pay large sums to the kidnappers, which led to his family leaving and leaving the country for security reasons.  The source also said that organized crime will only be overcome if there is political will, as influential people earn a living through crime. Without mentioning the names of police officers, SERNIC, politicians and other facilitators of criminal actions, the source explained that there are several networks commanded in different locations, a fact that allows them to coordinate and determine the targets to kidnap, extort and even murder. 

The investigator told the "Carta" that the situation is becoming so critical because the Government does not want to acquire some technological equipment that allows to track and investigate even conversations exchanged on the WhatsApp social network, even if they use Wi-Fi. Our source also ensured that a large part of the bank accounts, into which the amounts are channeled, are domiciled abroad, which makes it difficult to track them. In fact, PRM Commander-General Bernardino Rafael said last weekend that the hijackers have been receiving the ransom amounts in bank accounts opened abroad.

This year, remember, seven kidnappings have already taken place, and Kauchal Pandia, son of the owner of Casa Pandia - a shop selling capulanas - is still in captivity, despite the fact that the family reveals that they have paid “rivers of money”. The cities of Maputo and Matola have been epicenters of the abductions, although there are cases recorded in the cities of Beira (Sofala) and Chimoio (Manica). This Wednesday, SERNIC, at the level of Maputo province, presented an alleged group of armed robbers who, according to Elvino Panguana, spokesman for SERNIC, was preparing, in this part of the country, to assault a South American businessman. African in Ponta D'Ouro, Matutuine district, allegedly because the victim has a safe at home with values ​​in different foreign currencies.

Panguana said, moreover, that one of the group's members is a citizen who supplied arms to the kidnappers of businessman Rizwan Adatia. He also added that the group had been in Moamba for days, where he assaulted a citizen on the public road. In fact, the arrests have been frequent, but the investigations never reach the principals. As one of the biggest evidences that organized crime controls the country, the source pointed to the shooting of CTA President Agostinho Vuma, shot in the light of day in one of the busiest avenues in the country's capital and where there are State institutions manned by the Police . (Omardine Omar)

Declined

Mozambique’s Minister of Justice, Helena Kida, has declined to comment on the scandal at the Matalana police training centre, on the outskirts of Maputo, where male instructors impregnated 15 women trainees. An internal dispatch from the general commander of the police, Bernadino Rafael, widely circulated on social media earlier this month, suspended all the instructors involved from their duties and barred them from setting foot in the centre. The abused women were sent to their home provinces, but will be allowed to complete their training at a future date. Questioned about the scandal on Monday by the independent television station STV, Kida said she had not yet had “enough time to sit down and study what happened at Matalana”. She said it would be better to wait for an official statement from the Ministry of the Interior. “I think the best thing to do is wait”, she said. But the scandal has been in the public domain for over a week, and there is no sign of any statement from the Interior Ministry.

The Ombudsman, Isaque Chande, was more forthright. He told STV that what had happened to the women trainees was “lamentable”, and similar abuses could well be happening in other institutions. “It’s possible there are other situations we don’t know about”, said Chande. “The most important thing is that Mozambican society has condemned this behaviour”.

 

KIDNAPPINGS AFFECT BUSINESS ENVIRONMENT

The current wave of kidnappings of business people is affecting the business environment in Mozambique, the Confederation of Mozambican Business Associations (CTA) has warned. “The recent kidnapping of a businessman has increased still further the climate of fear and terror among the business class, thus undermining the business environment”, said the CTA’s interim chairperson Alvaro Massinga, cited by the independent newssheet “Carta de Mocambique”. Massinga was referring to the kidnapping of Artur Magaia, owner of “Magaia Resort” in Bilene, in the southern province of Gaza, on 11 August. He was abducted from the Belo Horizonte neighbourhood, where he lives, on the outskirts of Maputo.

The CTA, said Massinga, wants to see a speedy solution of a problem “which has a negative impact on business people and inhibits their efforts to contribute to a more stable and prosperous economy”. “The CTA wants to be part of the solution”, he added, “and so we are at the disposal of the relevant authorities to collaborate in defining basic measures of security for business people, and minimising the possibility of kidnappings”. Since Massinga gave this interview, there has been another kidnapping, this time in Beira. The victim was Rajiv Natin, son of the owner of “Formosa”, an establishment selling alcoholic drinks, among other goods. He was abducted on Saturday in the Beira neighbourhood of Maquinino. It is not yet known whether the kidnappers have approached the family of either Magaia or Natin with demands for a ransom.

Unsure businessmen

On the night of last Saturday, August 15th, the business class and the Indian community, resident in the country, were again shaken by the kidnapping crime, with the kidnapping, in the Maquinino neighborhood, in the city of Beira, Sofala's provincial capital, from the son of the owner “Formosa” - a house selling alcoholic beverages and other products - Rajiv Nitin. The crime happened days after the province of Maputo also witnessed the same barbarity, with the kidnapping of businessman Artur António Magaia, owner of Magaia Resort, based in the municipality of Praia de Bilene, Gaza province. The crime happened last Tuesday night, in the Belo Horizonte district, in the district of Boane.

Benjamina Chaves, Director of the National Criminal Investigation Service (SERNIC), at the level of Maputo province, told Agência Lusa that everything is being done to rescue the businessman and hold the kidnappers accountable. However, a SERNIC source revealed to our report that there is no precise information about Magaia's whereabouts. However, more than addressing the last two kidnappings that shook the country, this week aims to continue the article published on the 23rd of July, in which we brought some details that characterize this type of crime, already rooted in the our country. In this edition, we bring you some details about drug and firearms trafficking.

An investigation carried out by our report, in the province of Cabo Delgado, concluded that the explosion of the boat, which carried 1,500 kg of heroin, in December 2019, was due to the betrayal among the national agents involved in the operation. A source from the "Charter" said one of the agents had alerted the 12 Iranian citizens to the operation. In fact, the sources also say that some agents participated in a scheme to divert more than 100 kg of the drug seized by the Mozambican authorities. It should be noted that, in recent weeks, the Police of the Republic of Mozambique (PRM) reported the seizure of several firearms in “other people's hands”, however, as on other occasions, it did not reveal the legal owners of those weapons and much less how they ended up in the hands of the alleged criminals.

For example, in the Chali neighborhood, in the KaTembe Municipal District, in the city of Maputo, the PRM seized six firearms a few days ago, two shotguns (22mm caliber), with the numbers 190190 and 101412 and four Dadix pistols Axitr, Erma, FN and Mark-III, under the numbers 655, 768722, 9018, respectively; a pistol magazine; a shotgun bag; and 57 pistol ammunition. According to the corporation, the (war) material was abandoned by hitherto unidentified individuals, when they became aware of the police patrol. In the province of Niassa, specifically in the village of Namapire, district of Mandimba, a firearm of type AK-47, with the number BA1021, was found, containing 24 ammunition in the magazine. It was abandoned by unidentified individuals, in an agricultural field.

 In the districts of Maúa and Marrupa, also in the province of Niassa, three citizens were arrested, named A. Sadique, A. Taiare and V. Victor, for having been found in possession of three firearms, one AK-47 , with nº 3544 and two semi-automatic SKS nºs 24204291 and 1725417. In the province of Manica, in the district of Machaze, a firearm of the pistol type, with the Walter mark, with the number 122625, caliber 9mm and two ammunition in the magazine was seized. At the time, two 18-year-old citizens were arrested.

For its part, in the Municipality of Matola, Maputo province, the PRM detained a citizen, named M. Massingue, 23 years old, in possession of a SP2M pistol. At the Administrative Post of Panjane, Magude district, a CZ550 shotgun, caliber 375mm, with the number G5067 and four ammunition was found. The individuals were also not found. Some police sources, as well as some criminalists, guarantee that the number of weapons seized exceeds the number revealed by the authorities and that some end up being returned to the criminals. In fact, the lack of political will is pointed out as one of the reasons that influences the failure to investigate the provenance of the weapons seized in the hands of criminals. (Omardine Omar)