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Corruption Office Investigates Alleged Embezzlement Schemes at LAM

Corruption Office Investigates Alleged Embezzlement Schemes at LAM

Mozambique’s Central Office for Combating Corruption (GCCC) is investigating alleged embezzlement schemes and acts of internal sabotage at state-owned carrier Linhas Aéreas de Moçambique (LAM).

In light of the allegations made by the South African consultancy, Fly Modern Ark (FMA), a source quoted by Lusa revealed that the organisation “immediately filed case number 21/P/GCCC/2024, with a view to clarifying the material truth”.

“The GCCCG decided to act after becoming aware, on 12 February, through the media and digital platforms, of new facts related to the purchase of airline tickets in LAM shops using automatic payment terminals belonging to third parties and the under-invoicing of fuel purchases on the Maputo-Lisbon flight,” it clarified.

In January 2023, the entity had already opened case no. 06/11/P/GCCC/2023, to investigate allegations about fleet management, namely the sale of aircraft, their rental, the company’s indebtedness for acquiring new equipment, maintenance operations, contracting suppliers, the legitimacy of invoices paid and the sale of the company’s corporate assets.

“Within the scope of case no. 06/11/P/GCCC/2023, LAM and other institutions have collected abundant documentation related to the facts that are still being processed. Likewise, in the same process, various entities from this company and other institutions are being questioned in order to clarify the facts,” said the source.

According to the source, the General Inspectorate of Finance and the General Inspectorate of Public Administration have been asked to carry out audits of LAM’s management accounts, whose reports are still awaited.

In addition to Mozambique, the alleged facts under investigation “occurred in five foreign jurisdictions, which required the use of international co-operation to obtain evidence,” she added.

Recently, the government guaranteed that there will be accountability through the competent bodies if the illegal acts are proven. The Prime Minister, Adriano Maleiane, stated that the Executive is “on top of” the matter related to the alleged misappropriation of funds, clarifying that “if it is proven that the management rules have been violated, there is room to punish those involved”.

“If it is proven that the management rule has been violated, this will be corrected, and there are legal and financial instruments for resolving the problem, so as to prevent others from arising. We will help the company and its managers find the right path,” he explained.

LAM has been undergoing a revitalisation process, with Fly Modern Ark managing it, since April last year. The company’s strategy follows years of operational problems related to a reduced fleet and a lack of investment.

LAM’s flight network has 12 destinations on the domestic market. Regionally, it flies regularly to Johannesburg, Dar es Salaam, Harare, Lusaka and Cape Town, while Lisbon has been its only intercontinental destination since 12 December.

The airline operates more than 40 flights a day, using its fleet of one Boeing 737, three Q400s, two Bombardier CRJ 900s and two Embraer 145s operated by its subsidiary Moçambique Expresso (MEX).

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