Mozambique 5 Nov: Let the investigation begin

Good morning. This ‘Friday newsletter’ is coming out on Saturday thanks to Mozambique’s recent habit of breaking news late on Friday afternoons. Two weeks ago we had the Bank of Mozambique 600bp rate hike; last week, a late statement from the mediators in the peace talks; and yesterday, the Attorney General announced that an audit firm had been chosen to investigate suspicions around the ProIndicus, EMATUM, and MAM deals.

FREE TO READ: Kroll commissioned to investigate Mozambique hidden debt scandals

The choice of Kroll is heartening, given the company’s record in digging up wrongdoing - notably in Kenya where it did such a thorough job that the government decided it could not publish the report (which later came out on Wikileaks).

Mozambique’s Attorney General has promised to publish Kroll’s Mozambique report, but concerns are already being raised over the tight deadline deadline the company has to produce the report. Its work will also probably be interrupted by the holiday period - but the key factor in Kroll’s success will be the co-operation of the Mozambique government and the other players in the deal.

An unwelcome reminder of the Mozambique government’s tendency to opaque dealings came with this week’s re-awarding of the contract to manage the country’s migration to digital radio and television.

SEE: Mozambique digital TV deal handed back to Guebuza-linked JV – at half the price

Yesterday, the ‘14 principles’ proposed by the international mediators made it into the public domain, having been leaked to weekly newspaper Savana. The document claims to have been approved by both sides in the peace process - but whether Frelimo has really agreed remains to be seen.

SEE: Provincial governors to be ‘chosen locally’ under Mozambique mediators’ 14-point plan

Renamo, meanwhile, has reiterated its commitment to the talks despite the apparent assassination of its members at an increasing rate - and despite the opposition party not having renounced violence itself.

SEE: Another Renamo member shot, but party says it won’t quit peace talks

The ongoing conflict in central Mozambique is not halting all economic activity there; this week, a forestry concession in Sofala, which also includes a limestone quarry project, was sold to a UK-listed company aiming to supply limestone to the local cement industry.

SEE: Premier African Minerals closes Mozambique limestone prospect deal

And in the oil and gas sector, regulator INP is in talks with the multinationals over the exact terms and conditions of the latest exploration and production contracts. One of its challenges is to square the demands of a slightly eccentric Petroleum Law with the requirements of investors.

SEE: INP aiming to sign new Mozambique oil exploration contracts by end of year

Have a great weekend.

RECENT POSTS

• Kroll commissioned to investigate Mozambique hidden debt scandals

• Provincial governors to be ‘chosen locally’ under Mozambique mediators’ 14-point plan

• INP aiming to sign new Mozambique oil exploration contracts by end of year

• Premier African Minerals closes Mozambique limestone prospect deal

• Mozambique digital TV deal handed back to Guebuza-linked JV – at half the price