A study by the Center for Public Integrity (CIP) reveals that the Mozambican state spends 318 billion meticais more on direct contracts in each election year than in years without elections.
"The relative difference in spending on direct hiring in election years compared to spending on public tenders and other methods is around MZN 349 billion per election year," he said.
According to the CIP, it is a non-transparent model for the acquisition of goods and services by the state, especially since in election years "there are relatively fewer direct contract awards".
"In the 2019 election year, the average cost of direct contracts exceeded that of public tenders and other methods by 8 million meticais," the study reveals.
Research suggests that the significant increase in state spending on direct awards and competitive tendering is closely related to the propensity of election years for overcharging and increased corruption risks.
"Some of the contracts have gone to companies that are not very significant, or are associated with the political elite, and are taking place in the context of elections, where the risk of manipulating public procurement to finance the electoral campaign or enrich the ruling elite is very high," it says.
The document recalls, by way of illustration, the cases of corruption, through the manipulation of public contacts, which have made the headlines, such as Hidden Debts, INSS (Helena Taipo), Cambaza/ADM, as being related to election periods.
But it also points to the recent involvement of members of the Frelimo party in unclear awards: the case in which, in February this year, the National Roads Administration in Sofala awarded 609 million meticais to the company Construções Karina, Serviços e Consultoria, Lda, owned by Mário da Cruz Amaral, a Frelimo MP for the Sofala constituency; and the case in which, in July this year, the Technical Secretariat of the Electoral Administration directly awarded 8 billion meticais to Artes Gráficas Lda-Laxton.
"According to CIP, one of the companies in the consortium, Artes Gráficas, Lda., is owned by some of the partners in the Académica Group, most of whom are businessmen linked to the Frelimo party," it reads.
In August of this year, the National Electoral Commission used a direct award and contracted MHL, AUTO, SA, owned by Mozambique Holdings, Lda, to supply 138 vehicles. The amount was budgeted at 342.5 million meticais.
"Mozambique Holdings, Lda has business links with the Frelimo party, through the company Afrodrill, Lda, of which it is a shareholder together with SPI - Gestão & Investimentos S.A.R.L, the ruling party's holding company," reveals CIP.
The study recommends investigating possible cases of corruption in procurement processes and carrying out regular and more rigorous audits of procurement processes in the context of elections.
Leave a Reply