The Bank of Mozambique (BM) recommends strengthening the institutional capacity of the relevant sectors in the country's liquefied natural gas exploration chain, given the risk of tax evasion.

The Director of the Central Bank's Licensing and Exchange Control Department, Paulo Mandlane, believes that the institutions must have well-trained teams to monitor the level of sophistication of these projects.

"Monitoring is a tool that also needs to be strengthened nowadays, so that the expectations we had at the beginning, when the projects were being negotiated, can be realized nowadays, with well-prepared teams that have the capacity and means to monitor them," said Paulo Mandlane, quoted by the MMO portal.

The head of the Central Bank's Licensing and Exchange Control Department believes that the projects themselves have a sophisticated operating mechanism; "we've seen projects with off-shore account systems that if we're not well prepared for, there could even be an underlying risk of tax evasion," he said during the International Conference on Taxation of the Extractive Sector, in Maputo.