Maputo, 10 Feb (AIM) – The Minister of Transport and Logistics, João Matlombe, claims that the publicly-owned Mozambique Airlines (LAM) plays a crucial role in the country’s aviation.
According to Matlombe, who was speaking during a working visit he paid to LAM on Friday, the government is working in order to take the company out of bankruptcy.
“Since LAM plays a crucial role in the country’s aviation, the government is committed to supporting its financial and operational recovery”, he said.
Matlombe’s visit to the company comes after the government has authorized three companies from the state business sector to buy 91 per cent of the shares in LAM.
The companies in question are Hidroelectrica de Cahora Bassa (HCB), the company that operates the Cahora Bassa dam on the Zambezi River, in the western Mozambican province of Tete; the country’s Ports and Rail Company (CFM) and EMOSE, the country’s largest insurance company. These are the only three publicly owned companies that consistently run at a profit.
During the visit, Matlombe reaffirmed the government’s commitment to restructuring the company. He also stressed the importance of modernization and operational efficiency in order to guarantee LAM’s sustainability.
“The visit enabled the Minister to listen to the company’s concerns and understand its operational challenges. LAM’s management stressed the need for government support to revitalize the company”, read a statement issued by the company after the visit.
Over the last 10 years, LAM 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.
Over the last year, LAM was under the management of the South African company Fly Modern Ark (FMA), which was hired by the government to bring LAM into profitability and rescue it from bankruptcy, tasks in which it clearly failed.
(AIM)
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