Several significant Mozambican civil society
bodies have declared that it is “unacceptable to pay illegal debts” – referring
to the loans contracted by the companies EMATUM (Mozambique Tuna Company),
Proindicus and MAM (Mozambique Asset Management).The Budget Monitoring Forum
(FMB), the Mozambique Debt Group (GMD) and the Transparency and Fiscal Justice
Coalition (CTJF) issued a joint statement that “we Mozambican citizens refuse
to pay the debts of private companies illegally guaranteed by the government”.The
three companies are technically private, but they are 100 per cent owned by
state bodies. The previous government, under President Armando Guebuza, issued
guarantees in 2013-14 for loans of 850 million, 622 million and 535 million
dollars incurred by EMATUM, Proindicus and MAM respectively. The civil society
bodies argue that these debts are unconstitutional, since they were not
submitted to the country’s parliament, the Assembly of the Republic for its
assessment and approval.The guarantees also exceeded the limit for guarantees
laid down every year in the budget law. That limit was the equivalent of 6.2
million dollars in the 2013 budget and the equivalent of 515 million dollars in
2014. But the amount guaranteed was over two billion dollars.The statement from the three bodies demanded that the government publish all
information on the public debt, online and in the Mozambican media, so that all
citizens will be fully informed. Such an explanation must also include the
implications of the debt for the country, and for the pockets of individual
citizens.They also demanded public and detailed presentation of the austerity
measures promised by the government with a clear indication of how much money
will be saved. Such measures “must not sacrifice the social sectors or damage
the poorest citizens”.The urged the country’s parliament, the Assembly of the
Republic, to prevent the Proindicus and MAM debts from being converted into
sovereign debts (as has already happened with the EMATUM debt). The civil
society bodies also called for a parliamentary inquiry - a demand which the
Assembly met on Thursday with a unanimous decision that a parliamentary
commission of inquiry will be set up.The statement calls on the Administrative
Tribunal, the body that oversees public expenditure, to undertake an exhaustive
forensic audit of the public debt, and to ensure that those who benefitted
unduly from the illegal debts repay the money.
The civil society bodies also
want those who authorized illegal debts to face criminal proceedings.“We
reiterate our willingness to strengthen the rule of law and to defend the public
interest by refusing to pay debts contracted with state guarantees obtained in
an unconstitutional and illegal manner”, the statement concludes.On Wednesday
the British High Commissioner Joanna Kuenssberg called for an international
judicial audit of the EMATUM, Proindicus and MAM loans. She told a press
conference, held during celebrations of the official birthday of Queen
Elizabeth II, that “an international forensic audit would be a means of rapidly
clearing up this case”.Britain is one of the 14 donors and funding agencies
which used to provide direct support to the Mozambican budget, but which
suspended that support after the scandal of the undisclosed loans broke in
April. “The situation is very serious and is shaking the country’s
economy”, said Kuenssberg, adding that British ministers are “very sensitive”
to the latest news about Mozambique’s debts. Mozambican government, she
added, needed to regain rapidly the trust of the public and of its
international partners.Britain, she said, was waiting for proposals from the Mozambican government
before resuming general budget support - but that decision would only be taken
after a discussion amongst all 14 members of the budget support group (known as
the Programme.
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