State-owned companies Empresa Moçambicana de Seguros (Emose), Hidroeléctrica de Cahora Bassa (HCB) and Caminhos-de-Ferro de Moçambique (CFM) are expected to soon evaluate the proposed acquisition of 91 per cent of the state’s financial shares in Mozambique Airlines (LAM).
The information was given on Friday, 7 February, in Maputo, by the government spokesman and also Minister of State Administration and Civil Service, Inocêncio Impissa, at a press conference during which he announced the latest developments on the operation to sell 91% of the state’s shares in LAM.
According to the government official, quoted by Agência de Informação de Moçambique, the companies authorised to acquire the state’s stake in LAM will have to assess their conditions of acquisition, as well as approve the financing models for the purchase.
‘In this case, the companies have the opportunity to analyse the business proposal, have their experts analyse the various scenarios, examine the study carried out and decide on the deal,’ said Impissa.
The government spokesman said that the state had taken this decision following the conclusion of a study to assess the mechanisms to be adopted for the revitalisation of the company, which concluded that the sale of shares to state companies would be the best way to introduce funds for the restructuring and acquisition of eight aircraft.
‘This decision was taken after an assessment of various scenarios, including the possibility of privatising LAM. A forensic audit was also carried out which made it possible to realise and understand to what extent this measure would be rational and prudent,’ he added.
Inocêncio Impissa also revealed that all citizens will be able to follow and monitor the progress of this process, which is due to start soon.
He pointed out that behind this investment is a series of measures that will be taken to realise the deal, the viability of which has been questioned by society and various analysts.
Over the last ten years, LAM, which used to operate with just two aeroplanes, has been shaken by a financial crisis associated with corrupt practices in the acquisition of services, having accumulated debts with suppliers valued at more than 14.5 billion meticals (230 million dollars).
