Sovereign Analysis /
Sub Sahara Africa

Exotix Research Snap: Mozambique - What now after the audit?

    Stuart Culverhouse
    Stuart Culverhouse

    Chief Economist & Head of Fixed Income Research

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    Tellimer Research
    27 June 2017
    Published byTellimer Research
    The Kroll independent audit of the three companies (EMATUM, MAM and Proindicus) was published on 24 June. In short, it confirms the flawed business plans of the companies concerned, weak public financial management and procurement processes, and the opaque nature of the financing arrangements. It illustrates how the three projects were intertwined, that the government overpaid for the goods relative to an external assessment, suggests the fees earned were excessive, and that US$500mn of loan proceeds related to the EMATUM loan are unaudited and unexplained. Crucially, publication of the long-awaited report should now allow other things to move forward.