The Attorney General's Office (PGR), through the Central Office for Combating Corruption (GCCC), is investigating strange business deals at Linhas Aéreas de Moçambique (LAM), under the direction of João Carlos Pó Jorge.
The GCCC has requested from LAM CEO Pó Jorge's management documents, including contracts and business authorizations that are pushing the company toward bankruptcy.
The GCCC wants to know about the entire procurement process, which includes aircraft fleet leasing and catering services, and details about the attempted sale of two "Embraer 190" planes, already in pieces. In addition, it wants to uncover the deal for the supply of printers by the private company "Print 4 You".
According to a national newspaper, which cites an Ernst & Young audit of LAM's accounts, the company paid 1.1 billion meticais for aircraft leasing alone; spent 348.7 million meticais for the repair and maintenance of those same aircraft; 294.5 million meticais on insurance, which previously stood at 99 million meticais; and 40 million meticais on technical assistance, which differs from maintenance and repair. LAM paid 127.5 million meticais to the "lobbyist" intermediaries in these deals. The PGR wants to investigate all these contracts, including the use of the deposit for the purchase of "Boeing" brand airplanes.
There is more...
Mozambique Airlines will have spent, in 2019 alone, about 294.3 million meticais on meals that amounted to bread (dry) and water during flights.
On the list of supplier companies are: "SMS Catering" - a state owned company, involved in the corruption scandal, including over billing, at the "Aeroportos de Moçambique", whose director was arrested; "Bízua Catering"; and "Monte Verde", from Beira. The PGR also wants to see the respective contracts.
Salaries...
The management of LAM, consisting of the General Director and six other Directors had, in 2020, 48.5 million meticais to run the company. The previous year the salary amount was around 31.5 million meticais for the same group of people.
The labor force, of about 808 workers, absorbs 900 million meticais in salaries.
Source: Canal de Moçambique