Mozambique: Transparency Promises to Gain U.S.$309 Million

To get its $309 mn in Covid-19 money from the IMF, the government has been forced to make unprecedented concessions to transparency of the use of the money. In the Letter of Intent, the ministers say: "We will undertake an independent audit of crisis-mitigation spending and related procurement processes once the crisis abates and will publish its results. We will also publish on the government’s website large public procurement contracts related to crisis mitigation, the names of the awarded companies, their beneficial owners, and ex-post validation of delivery."

Tao Zhang, IMF Deputy Managing Director and Chair, made clear this is linked to the need to "prevent corruption and misuse of emergency financing, by strengthening transparency and accountability." And the IMF's report stresses that legislative and institutional reforms were adopted a few years ago, but there is "a lack of effective implementation."

The requirement for audits and validation of delivery are important. But the strongest is revealing the "beneficial owners" of companies that win tenders. The escape clause is that it only applies to " large public procurement contracts," making is easy to split larger contracts in to many smaller pieces.

There will be a 2020 wage freeze.

The Covid-19 State of Emergency was extended for 30 days by President Nyusi.

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