CIP reveals the pattern of state capture by the private sector, especially banking

The Mozambican state is captured by the private sector or interests, according to  Center for Public Integrity (CIP)The report points to the recent appointment of the former Prime Minister of Mozambique, Carlos Agostinho do Rosário, to the position of Chairman of the Board of Directors (PCA) of Banco Comercial de Investimentos (BCI).

CIP notes that the "revolving door" phenomenon of former government officials moving to senior positions in large private companies has been taking place in the country for several years. It cites as an example the case of the former President of the Republic, Joaquim Chissano, who was recruited by two mining multinationals based in South Africa, Harmony Gold Mining LTD and African Rainbow Mineral LTD, to be a non-executive director.

CIP also refers to the case of Octávio Mutemba, who moved from government to Banco Austral; likewise, João Loureiro, a former president of the National Statistics Institute (INE), was in charge of what was then known as Nosso Banco.

The list includes former Prime Minister Luisa Diogo, who moved to Barclays Bank, now ABSA Bank, as CEO; Tomás Salomão, who was Minister of Planning and Finance, Transport and Communications, among other senior positions, and is currently CEO of Cervejas de Moçambique; Salvador Namburete, who was Deputy Minister of Industry and Commerce and then Minister of Energy, and went on to become CEO of Banco BIG; Magid Ossman, who was Finance Minister and went on to become managing director of GALP Energia and then CEO of Banco Único; Castigo Langa, who went from Energy Minister to CEO of Gigawatt, an electricity sales company; and the case of Celso Correia, who went from CEO of BCI to Minister of Agriculture and Rural Development in the current government.

The document notes the fact that these rulers were figures linked to the Frelimo party, with Graça Machel (former First Lady, wife of the first president of independent Mozambique); and the late Mário Machungo and Pascoal Mucumbi as pioneers of these practices.

"[The] former Minister of Education, Graça Machel, was president of the General Assembly of the International Bank of Mozambique (BIM) at a time when former Prime Minister Mário Machungo held the position of PCA. Meanwhile, Pascoal Mocumbi, also a former Prime Minister, was at the time part of a company called Lifinanci'ere Mozambiquewhich was part of one of the four Mozambican companies to acquire a total stake of 11% in Companhia Industrial da Matola," he says.

The CIP warns of the possible existence of other lesser-known cases, and questions this tendency for leaders with no known previous business experience to occupy senior positions in private companies.

"Is it to take advantage of their experience as former government officials? Or is it to use their influence to help unblock certain situations in which these banks may become involved in the future, in their relations with the state or other entities? Because "political capital generates knowledge, places and, above all, money", questions CIP.

A NGO says, however, that there is no violation of the Public Probity Law in the case of Carlos Agostinho do Rosário and others like him, because their previous (public) positions are not directly related to their current private ones.

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