Companies fingered in Mozambique’s debt default turn on audit firm Kroll
Maputo/Johannesburg — Three state-owned Mozambican companies whose government-guaranteed debts led the gas-rich nation to default have criticised an audit by Kroll that questioned their actions in the scandal. The companies queried two key findings by Kroll, including that more than $500m of debt remains unexplained, and said the entire maritime security project that the loans funded "was public from day one", according to a letter from their lawyers, Alexandre Chivale & Associados, addressed to attorney-general Beatriz da Consolacao Bushilli. The letter, seen by Bloomberg, was verified by the law firm. Mozambique’s government last year admitted to the International Monetary Fund (IMF) that it had agreed to about $1.4bn of loans it previously had not disclosed, prompting the Washington-based lender to halt financing to the country. A group of 14 donors followed suit. Mozambique is in default after missing at least two payments on its $727m worth of Eurobonds this year. As a conditio...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.