GCCC confirms detention of four former LAM managers

Maputo, 27 Feb (AIM) – Mozambique’s Central Office for the Fight against Corruption (GCCC) has confirmed that four managers of Mozambique Airlines (LAM) were arrested on Thursday for alleged involvement in acts of corruption, embezzlement and mismanagement.

Those arrested include the former General Manager of LAM, Joao Po Jorge, the former director of operations, Hilario Tembe, and the company treasurer, Eugenio Mulungo.

At a Wednesday press conference, the GCCC announced that among the irregularities currently under investigation are allegations concerning the sale and acquisition of aircraft, the purchase of fuel, uniforms and catering services, and operations paid for without any contractual justification.

The investigations are also looking into the memorandum between the Institute for the Management of State Holdings (IGEPE) and the South African company Fly Modern Ark (FMA), which was intended to support the restructuring of LAM and rescue it from bankruptcy.

In its brief tenure over LAM, FMA found that 3,2 million dollars had been diverted from the company’s funds. At the time IGEPE confirmed large scale theft, including the acquisition of buildings for some senior LAM staff, and the opening of bank accounts outside Mozambique. Translation services were paid for, but they did not exist, or were over-invoiced

One of the most extraordinary abuses was the hiring of a Boeing 737 aircraft for transporting cargo. This plane did not make a single flight, for lack of the appropriate licence – yet money was drained from state coffers to hire the Boeing.

The current LAM management has distanced itself from the accusations against its predecessors, and insists that the restructuring of LAM is continuing “normally”.

A statement from LAM said that the company “is following, with due attention, the development of the cases currently under investigation by the Central Office for the Fight against Corruption, collaborating with the relevant authorities”.

The investigations, claimed LAM, concerned events that had happened before the current administration took over the company.

“The current phase of restructuring is running normally”, the statement added, “in accordance with the agreed plans and deadlines”.

LAM claimed that its is stable and is running its services normally.
(AIM)
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