Heirs to debt: NGO suggests law limiting spending among end-of-term elected executives

Herdeiros de dívidas: ONG sugere lei que limite gastos entre executivos eleitos em finais de mandato

The Center for Public Integrity (CIP) suggests establishing a law to regulate the spending limits of elected executive bodies that are coming to the end of their mandate. The idea is to avoid inheriting debts.

"It's about controlling situations in which the payment of certain expenses ends up being carried over to the next term, which ends up putting a financial burden on the newly elected executive bodies," explains the CIP, giving the example of Hidden Debts.

"Between 2013 and 2014, the period of transition from Armando Guebuza's government to his successor, the so-called hidden debts1 were contracted, which ended up financially burdening the Mozambican state and, specifically, Filipe Nyusi's mandate, which began in 2015." recalls a document shared today by the organization.

The CIP thus suggests that Mozambique should look to Brazil, which created the Fiscal Responsibility Law (LRF) to collect any debts or transitional expenses from those who are entitled to them.

If a legal framework existed in the country, it would be legally questionable, for example, why the current city council of Matola, chaired by Calisto Cossa, awarded a contract for 518 million meticais when there were only three months left until the end of the term. And, in the case of this work, it was expected to last 18 months, well within the timeframe of another elected term.

From the CIP's point of view, even if this were the case, any inherent part of this work that should be attributed to the municipality should be resolved by the management (government) that contracted it, excluding any responsibility for the "new blood of the house", "unless there is a cash balance exclusively earmarked for this purpose".

In the case of Brazil, the legal restrictions/limitations cover the control of spending on new staff hires at the end of a mandate, the contraction of public debt and, in addition, the law sets targets to control income and expenditure, notes the NGO.

In Mozambique, "at the end of a term of office there is an increase in expenditure, or contracts are signed for which payments are carried over to the next term of office without there being a financial guarantee or cash to make the payments. As such, the Public Prosecutor's Office, as the body responsible for monitoring legality, must be alert to this type of situation and act accordingly. However, more than the Public Prosecutor's Office acting to investigate this type of suspicious transfer of expenditure, it is essential that a law is produced with the aim of limiting the spending of elected executive bodies at the end of their term."

Share this article

Leave a Reply

Your email address will not be published.