Mozambique is not yet prepared to move forward with audit

audit_mozambique

On Thursday 14 July, the spokesperson of the IMF, Gerry Rice, once again emphasised the need for the Mozambican government to conduct an independent, international audit to assess the companies that benefited from the previously undisclosed loans.

“In our opinion, the government is not ready to move forward with this audit. This is the point where we currently find ourselves”, said Rice, who informed journalists that the report of the IMF mission to Mozambique is not yet complete.

“We welcome the government’s investigation into these previously undisclosed loans. The IMF team stressed the need for further action to be taken. In particular, we urge that an independent, international audit should be conducted on the hidden loans of companies Ematum, Proindicus and MAM”, said Rice.

Source: Economia ao Minuto

Economist and former finance minister, Magid Osman, argues that the country needs to reach an agreement with the IMF to restore macro-economic stability and investor confidence and, above all, protect people’s savings.

Osman maintains that an agreement with the IMF would complement the austerity measures recently adopted by the government to overcome a crisis which combines economic recession, devaluation of the metical and high rates of inflation.

“If we do not use this crisis to enact deeper reforms, the efforts made will have been a waste. If we just have an austerity programme, there will be no growth and more debt will be needed. In which case, the debt will become increasingly unsustainable because it will be denominated in US dollars”, Osman said.

Osman was speaking recently in Maputo at a round table organised by the Polytechnic University under the theme ‘How to restore optimism and confidence in Mozambican society’.

According to Osman, it is possible to achieve short-term macro-economic stability by mid-2017, with inflation under control and the metical stabilised, but first and foremost, it is “necessary to adopt rules leading to a new form of development, so that the country has a new economic paradigm”.

Speaking at the same occasion, the executive secretary of the Economic Commission of the United Nations for Africa, Carlos Lopes, argued that Mozambique must establish the true composition, structure and size of its economy, in addition to restoring peace and stability – the two elements essential for there to be economic growth.

The event was moderated by Lourenço do Rosário, dean of the Polytechnic University, for whom the subject of restoring optimism and confidence in Mozambican society explicitly referred to “the country’s need to restore the role of universities”.

“We have been travelling parallel to the great nation’s debates, in which we are duty bound to participate actively, as they concern us all. We must contribute to the construction of a narrative based on knowledge”, Lourenço do Rosário said.

Source: Jornal Notícias

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