Mozambique: Former Lam Manager Faces 31 Financial Crimes

Maputo — Pó Jorge, the former managing director of the publicly-owned company Air Mozambique (formerly known as Mozambique Airlines, LAM), has been formally charged with 31 financial and corruption crimes, including mismanagement, embezzlement and corruption.

Pó Jorge, who managed LAM for almost six years, was arrested last February alongside Hilário Tembe, the LAM former Director of Operations; and Eugénio Mulungo, the company's head of Treasury. Another senior manager was also detained, but his identity has not yet been revealed.

According to the country's Attorney General's Office (PGR), the former manager engaged in widespread illegal conduct, including fraudulent catering payments, vendor contracts, and unauthorized aircraft transactions, acting in collusion with co-defendants Hilário Tembe and Eugénio Mulungo.

The prosecution highlights that damages from the illegal sale of shares in LAM's travel agency, MexTur, to a known debtor previously banned by The International Air Transport Association (IATA) reached over 44.2 million meticais (around 690,000 US dollars).

The authority also points out that Pó Jorge allegedly authorized payments of three million meticais to uniform supplier "Gina @ World" without a signed contract or board approval, while also bypassing competitive tender procedures for "Print For You."

The financial irregularities extended to fleet operations, where he dispatched an Embraer aircraft to Nairobi for unauthorized maintenance costing 890,610 US dollars before selling an aircraft for 7.6 million US dollars far below its estimated 17 million US dollar valuation.

Pó Jorge is also accused of misusing corporate funds by diverting four million dollars in Boeing funds to settle a 9.7 million dollar payment to lessor AERCAP without general assembly authorization.

The 31 charges brought against the former executive consist of eight counts of financial involvement in business dealings, 12 of mismanagement causing loss, eight of embezzlement, two of fraud, and one of abuse of office.

Read the original article on AIM.