Maputo — Mozambique's Central Office for the Fight against Corruption (GCCC) announced on Tuesday that it has begun criminal proceedings against three senior officials from the Defence Ministry accused of embezzling 52.3 million meticais (about 819,000 US dollars, at the current exchange rate).
According to the GCCC spokesperson, Romualdo Johnam, speaking to reporters on Tuesday, at an event regarding the presentation of the activities carried out by the GCCC, during the first semester of the current year, the three officials made transfers of money to various companies, supposedly contracted for public works.
They also transferred money supposedly to acquire goods and services for the State, without issuing tenders or signing contracts, under the pretext of contingency and military urgency
"The case is currently underway with a total of five defendants. The group is accused of embezzlement, tax fraud, illicit enrichment and money laundering, which are currently being investigated. The group also made large cash payments for the purchase of goods for their personal benefit, showing outward signs of wealth that are not in line with their lawful income', Johnam said.
He added that the defendants were involved in a criminal case related to a tax fraud scheme using forged documents to obtain a refund of Value Added Tax (VAT).
This case also involves officials from the Mozambican Tax Authority (AT) and representatives of a fuel company from the central province of Tete.
"The AT officials fraudulently received a total of 81.2 million meticais. From analyzing the modus operandi, we identified critical weaknesses in the e-Tributação (electronic Taxation system) and SICR systems of the Tax Authority which, combined with weak regulation, created an environment conducive to fraud', Johnam said.
"The VAT refund process should be reviewed', urged Johnam with consideration being given, among other measures, to audits, requiring proof of commercial transactions, as well as the implementation of advanced technologies for cross-checking data that influences taxation.
