Mozambique 8 June: Transparency? What transparency?
Good morning. Since the hidden debts scandal blew up in April, Mozambique’s government has repeatedly been promising improved transparency – to financiers, donors, and the people. But it remains a long way from delivering.
Take, for example, yesterday’s announcement from the deputy health minister regarding a planned sell-off of state infrastructure assets. Minister Saíde read out a list of decrees, giving journalists the exact date and name of the decree – but leaving the true implications of his announcement very much open to interpretation. Zitamar outlines this morning how much we know.
SEE: Cash-strapped Mozambique puts rail and port concessions up for sale
Today, members of the government will appear before parliament to have yet another go at explaining why ProIndicus, EMATUM, and MAM borrowed $2 billion in the name of the Mozambican people.
When finance minister Adriano Maleiane testified before a parliamentary commission, he said the EMATUM boats required modification to be able to export to Europe. That may not have been entirely true, it now turns out – and EMATUM issued a short statement this week in defence of its supplier whose products, the company said, “fully satisfy EMATUM's operational and commercial needs.”
If the EMATUM omnishambles is not the government’s fault or the fault of Privinvest and Abu Dhabi Mar, perhaps it’s the banks’? As reported elsewhere this week, financial sector regulators in the UK and in Switzerland are looking into the roles played by Credit Suisse and VTB in putting the deals together.
Meanwhile an impressive coalition of civil society groups came together this week to say, on behalf of the Mozambican people, that they refuse to pay back the debts. Moreover, they want investigations within Mozambique so that potential criminal aspects of the deal are not only being looked at in London and Zurich.
SEE: Mozambique civil society ‘ready to mobilise’ to reject illegal debts
On Monday in parliament, the mixed commission of government and Renamo negotiators cancelled their meeting at the last minute. Again, no explanation was given, but perhaps it had something to do with an attack on a coal train belonging to Vale, running from Moatize to Beira.
SEE: Vale coal train attacked in central Mozambique – police
Of course, the continued conflict in Mozambique is jeopardising the country’s economic recovery on all fronts. Tourism is no exception. But from conversations with a number of players in the industry over recent days, we found there are a number of other constraints that need to be addressed for tourism to play a meaningful role in getting the country back on its feet.
SEE: Analysis: Fighting hits Mozambique tourism, but problems run deeper in the flagging industry
In the oil and gas sector, French major Total has taken operatorship of two exploration blocks in the Rovuma Basin after Malaysian national oil company Petronas pulled out.
SEE: Total takes on Rovuma blocks as Petronas quits Mozambique
And elsewhere, UK-listed forestry and agriculture company Obtala has wrapped up $3 million of investments into its Mozambique activities.
SEE: Obtala closes $3m investments in Mozambique timber concessions
Have a great week.
RECENT POSTS
Cash-strapped Mozambique puts rail and port concessions up for sale
Analysis: Fighting hits Mozambique tourism, but problems run deeper in the flagging industry
Mozambique civil society ‘ready to mobilise’ to reject illegal debts
Obtala closes $3m investments in Mozambique timber concessions
