Maputo — The Central Office for the Fight against Corruption (GCCC) has announced that nine senior officials of the publicly-owned company Air Mozambique (formerly known as Mozambique Airlines, LAM) will face court proceedings over alleged mismanagement.
Over the last 10 years, LAM, which used to operate with just two airplanes, has been shaken by a financial crisis involving corruption practiced by the company workers during the acquisition of services. The company has recorded debts with suppliers, valued at over 230 million dollars as a result of embezzlement.
In 2024, LAM was under the management of the South African company Fly Modern Ark (FMA), which was hired by the government to bring the company into profitability and rescue it from bankruptcy. However, the effort did not solve anything.
Under the plan to restructure LAM, the government has authorized three state-owned companies to acquire stakes of the country's flag carrier. The companies in question are: Hidroelectrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa dam on the Zambezi river, in the central Mozambican province of Tete, which acquired of 25.2 percent of the share capital; the rail and port company, CFM, and the insurance company EMOSE, which acquired 15.4 percent of LAM's shares by investing 22 million dollars each.
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According to GCCC spokesperson, Romualdo Johnam, speaking to reporters on Tuesday, formal charges have been filed against the individuals involved, and the cases have been referred to the court for further legal proceedings.
"The charges are related to irregularities in the sale and acquisition of aircraft, the contracting and provision of catering services, and other transactions involving payments lacking adequate contractual justification. The accused must answer to the charges brought against them", he said.
"The case also involves four defendants, facing charges of abuse of power for allegedly failing to comply with regulations governing the contracting of various services for LAM", he added.
"This case, involving four defendants charged with abuse of office or position for failing to observe regulations regarding the contracting of various services for LAM, has been formally charged and referred to the court for further proceedings", Johnam explained.
According to Johnam, allegations that the company's former Chairman of the Board of Directors ordered a payment of six million US dollars for the purchase of an aircraft untrue.
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"Investigative efforts, including audits, failed to yield sufficient evidence of criminal activity. Investigative measures, grounded in audits were carried out. However, insufficient evidence was gathered to demonstrate the commission of crimes. Instead, only administrative, procedural, financial, or disciplinary irregularities were identified, leading to a decision to close the case file", he said.
