The Institute for the Management of State Holdings (IGEPE) will be responsible for managing a new company with the specific mandate of negotiating the debt of Mozambique Airlines (LAM), which is facing a severe financial crisis.
The information was disclosed this Friday during a visit by the parliamentary caucus of the Mozambique Democratic Movement (MDM) to IGEPE’s headquarters in Maputo.
According to IGEPE’s Chairperson, Ana Coanai, the measure follows a decision by the Council of Ministers authorizing the creation of an entity dedicated exclusively to restructuring the national airline’s debt. The new company will have, among other functions, the task of negotiating with LAM’s creditor banks.
“The process of restructuring, managing, and repaying the debt will be carried out by a company to be created by IGEPE, with the participation of Hidroeléctrica de Cahora Bassa (HCB, S.A.), Ports and Railways of Mozambique (CFM, E.P.), Mozambican Insurance Company (EMOSE, S.A.), along with LAM’s own shareholders, as a result of the government’s decision. This entity will negotiate directly with the banks,” said Ana Coanai.
During the meeting, she acknowledged the weaknesses that exist within the State Business Sector but highlighted that, despite these challenges, the group of public companies under IGEPE contributed 200 million US dollars in dividends to the State.
“This result comes from the contribution of the companies themselves, and these amounts are reinvested to generate more profits and investment,” Coanai added.
The MDM’s visit to IGEPE took place against a delicate economic backdrop in the country, marked by corruption cases, limited resources for public investment, and widespread distrust over the management of state-owned enterprises.
MDM caucus leader Fernando Bismarque criticized the mismanagement in several state companies and argued that the ongoing forensic audit at LAM must have practical effects beyond the airline.
“We hope that the forensic audit at LAM will not only serve to find those responsible but also contribute to fighting corruption in other state institutions and the diversion of resources, as you know. The biggest problem in this country, the main cancer, is transparency in the management of public resources,” said Bismarque.
The MDM delegation received assurances from IGEPE that transparency mechanisms in management are being strengthened and that a plan is underway to reduce the debt of state-owned enterprises.
Source: O País
