The Centre for Public Integrity (CIP), a Mozambican non-governmental organization (NGO), considers that the management of the Mozambique Sovereign Fund (FSM) is not transparent and the government's reports lack information.

According to a CIP report on the subject, the Sovereign Wealth Fund is far from being a transparent institution in the management of revenues from Liquefied Natural Gas (LNG).

"There is a lack of detail in the reports published by the government; a lack of financial returns on the amounts accumulated; time inconsistencies in the institution's income statement; and the permanence of figures linked to the government on the Investment Advisory Board: namely, Omar Mithá, Advisor to the President of the Republic, and Enilde Sarmento, National Director of Economic Policies and Development of the Ministry of Economy and Finance," points out the CIP publication.

The same publication also considers that the lack of transparency in management, as well as the lack of disclosure of information about the Sovereign Wealth Fund, undermines the institution's credibility and jeopardizes its acceptance by citizens.

"When essential information, such as regular reports on income and expenditure, is not made available in a clear and accessible manner, an environment of mistrust is created," the note reads.

For the NGO, another major challenge to the good governance of the Sovereign Wealth Fund "is the composition of the Investment Advisory Board, which does not comply with the provisions of Article 18 of the Regulation: that members must be independent of the government."

"The opaque management of the Sovereign Wealth Fund increases the risk of resources being diverted for purposes that do not meet the stated objectives. International cases show that lack of transparency and weak governance are factors that often lead to corruption scandals and mismanagement in SWFs," the document points out.

In the end, the CIP calls on the body to publish detailed and regular reports, accessible to the public, on the fund's income, expenditure and investments via its website, "ensuring that resources are invested in safe and profitable financial instruments".

(Photo DR)