Mozambique: Hidden Debt and Keeping $ Away From Government

(File photo).

As part of the donor attempts to not give cash to government, the European Union signed an agreement with the United Nations Development Programme (UNDP) on 22 April for the UNDP to manage a Mozambique post-cyclone recovery fund with $37 mn from the EU. (AIM 22 Apr)

The IMF announced Friday 24 April that it would disperse $309 mn under the IMF's Rapid Credit Facility to allow the country to meet health and other costs of Covid-19. But IMF Deputy Managing Director Tao Zhang made clear this emergency funding does not mean a new IMF programme for Mozambique. That is still to be negotiated and will require "strengthened debt management and transparency" and "structural reforms". The Public Integrity Centre (CIP) in a statement the next day called for civil society to monitor the use of this money and for the government to create a formal mechanism to do this.ÇAMENTO-PARA-COMBATER-O-COVID-19-1.pdf

Donors no longer trust government to manage aid after the $2 bn secret debt scandal. Thus it was seen as government thumbing its nose to the donors when Maria Isaltina Lucas, the finance ministry national budget director who signed the illegal government guarantees on some of the $2bn secret loans in 2013-4, was recently appointed as an adviser to Prime Minister Carlos Agostinho do Rosário. Under pressure from people within Rosario's office, she has now resigned rather than further embarrass the Prime Minister. (Mediafax 21 Apr)

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