The current board of the Confederation of Economic Associations of Mozambique (CTA) says that the agreement between the union's previous board and Construtora Mondego (CMondego) for the construction of two buildings was interpersonal and not institutional. It says that money was even paid in meticais and foreign currency before the contract was signed.

In a statement sent to MZNewsThe country's largest business union explains that the contract was signed two months before the previous board of directors left office. At the time, the President of the CTA was Rogério Manuel, who lost his life in a helicopter crash in December 2018 in the Manhiça district of Maputo province.

According to the management of Agostinho Vuma, who has been president of the CTA since 2017, the agreement with CMondego was surrounded by contours that made it difficult to manage and fulfill in a timely manner for both parties.

The contract agreement was for the construction of two of the association's office buildings, called "Casa do Empresário". One in the city of Xai-xai, Gaza province, and the other in Inhambane province. Together, the buildings were valued at 12 million meticais.

The commitment was for CMondego to finish the buildings and hand them over to CTA. CTA would then mortgage the buildings to a commercial bank, which would pay CMondego. On the basis of this mortgage and the financing agreements that CTA had with a cooperation partner, CTA would pay monthly bills to the bank, CTA explains.

According to the document, these lines of agreement were drawn up by Rogério Manuel's management, who formalized the contract on 23 March 2017.

However, the CTA's note suggests that only the "Xai-xai Entrepreneur House" has been completed. "The Inhambane Entrepreneur's House has not yet been completed, nor has it been handed over to the CTA," writes the association, noting that this failure by CMondego to meet its obligations "makes it impossible to materialize the mortgage plan to the bank for the respective payment".

As a result, the union believes that "the agreements between Mondego and the previous CTA management that took them over were based on more interpersonal than institutional principles".

In addition, "Mondego undertook to start the works on December 5, 2016, and the first payment made by CTA took place on February 16, 2017, in the amounts of USD 32,500.00 (thirty-two thousand five hundred US dollars) by check and 83,300.00 MT (eighty-three thousand three hundred Meticais). As can be seen, both CTA's financial operations and the start of the contract took place long before the contract was signed, which, as mentioned, only came into effect on March 23, 2017."

CTA concludes the note by saying that it is not in a position to clarify the grey areas involved in the contract agreement and is therefore seeking mediation from the Center for Arbitration, Conciliation and Mediation (CACM).