Maputo, 29 Dec (AIM) – An audit by the Administrative Tribunal, the body that checks the legality of Mozambican public expenditure, has detected the diversion of over 1.7 billion meticais (about 27 million US dollars, at the current exchange rate) from funds disbursed in 2021 for the prevention and mitigation of the effects of the Covid-19 pandemic.
The audit report, cited by the independent television station STV, says that the National Social Welfare Institute (INAS), which managed the funds disbursed to mitigate the pandemic, made expenditure of over 1.7 billion meticais for which there was no justification.
There was no evidence of the services which these funds had supposedly purchased.
In addition, in the education and health sectors, undue payments of over 78.6 million meticais were made, and 25 million meticais were spent on items not eligible for the Covid-19 funds.
Contracts were signed for over 57.3 million meticais without the legally necessary prior inspection by the Tribunal. Other irregularities in the hiring procedures amounted to over 100.a million meticais, and there were no documents justifying expenditure of 11.7 million meticais.
When the pandemic hit Mozambique, the government drew up a plan of requirements budgeted at 700 million dollars. Of this sum, 100 million was for prevention and treatment, 200 million was to support the State Budget, 240 million was to be transferred to households, and 160 million was for the financing and recovery of micro-businesses.
The Tribunal recalled that, to cover these needs, the government requested a loan from the International Monetary Fund (IMF), and support from other foreign partners.
But the control and management of these funds was so poor, the audit found, that the financial statements contained “material distortions”. There was “defective communication” about the purpose of the disbursements made by the Ministry of Economy and Finance, defective implementation or lack of control mechanisms, and defective organization of the archives and records needed for accountability.
The audit found there was no effective mechanism to ensure that the choice of suppliers of goods and services was in accordance with Mozambique’s standard rules for procurement, or that contractors complied with the technical specifications laid down in tender documents.
When STV asked the Ministry of Economy and Finance to comment on this scandal, it dodged the question, and recommended that the journalists contact INAS and the Ministries of Education and Health.
(AIM)
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