Mozambique's Minister of Economy and Finance, Max Tonela, admitted yesterday that the state-owned carrier Linhas Aéreas de Moçambique (LAM) and the telephone company Tmcel need restructuring to enter the path of sustainability.

Max Tonela outlined the overview of the two strategic companies, during a meeting with the World Bank director for Mozambique, Idah Z. Pswarayi-Riddihough, a source from the executive told Portuguese news agency Lusa.

"We have been discussing the case of restructuring LAM and Tmecel," Max Tonela emphasized.

Tonela did not give details about the type of intervention the government is considering in LAM and Tmcel.

The changes in the two companies, he continued, are part of a restructuring of the entire portfolio of shares that the Mozambican state holds in various companies aimed at the financial recovery of those facing difficulties.

The Mozambican state-owned carrier has in recent years faced operational problems related to a reduced fleet and lack of investment, while Tmcel is struggling with cash flow problems caused by its loss of weight in the mobile phone market, to the point that it has not been paying salaries to workers for more than two months.

The unsustainable situation in the state-controlled telephone sector led to the merger of the former Mcel, which operated in the mobile service, with TDM, which operated in the fixed service, resulting in a new company, Tmcel. (Lusa)