The Mozambican government is grappling with a series of financial irregularities, accumulated debts, mismanagement of public assets, and failure to meet tax obligations, according to the Report and Opinion from the Administrative Tribunal (TA) concerning the 2025 State General Account (CGE).
Findings published by the newspaper Evidências highlight significant weaknesses in budget execution, public procurement, revenue collection, debt management, and state asset control.
Among the alarming issues identified is the retention of approximately 36.6 million meticais in Personal Income Tax (IRPS) by the Matola Municipal Public Transport Company (ETM), with these funds not remitted to the government since 2014. This accumulated debt arises from the withholding of taxes from employees without the corresponding payment to tax authorities.
The report also outlines problems related to public debt management, including failures to meet financial obligations and the redemption of short-term debt securities by the Bank of Mozambique, which occurred without the funds passing through the Single Treasury Account, thus contravening established procedures.
Mozambique’s total public debt has now reached 1.043 trillion meticais, representing 82.41% of the Gross Domestic Product (GDP), with domestic debt alone amounting to 407.085 billion meticais, equating to 29.74% of GDP.
In the state business sector, the Administrative Tribunal discovered several instances of tax and financial non-compliance. The Maputo Municipal Public Transport Company (EMTPM) displayed irregularities in its procurement processes, notably in contracts for the supply of oils and lubricants, which were awarded without proper public tender publication.
Similarly, the Matola Municipal Public Transport Company has failed to settle tax debts and has not produced a management account since its establishment in 2011.
The document also notes that the Maputo Port Development Company (MPDC) paid 874.7 million meticais in concession fees, yet these amounts were incorrectly recorded as dividends, adversely affecting the classification of public revenues.
Furthermore, Cornelder de Moçambique, the concessionaire for Beira Port, has not transferred 18.2 million meticais relating to concession fees to the Public Treasury. The Mozambique Railways (CFM) also owes the state over 533 million meticais in unpaid dividends.
On the management of public assets, the report found 30,261 properties owned by the state, of which only 15.4% are registered in the name of the government. More than 24,000 properties remain unregularised, jeopardising their legal protection.
The report highlights a case involving 17 vehicles registered as gas-powered by the Ministry of Public Works, Housing, and Water Resources, despite being equipped with different fuel sources.
Another irregularity was noted with the Maputo Municipal Public Transport Company, which fully paid approximately 1.8 million meticais for the construction of a wall at the Manhiça Hangar, only for the site to be abandoned with just 30% of the work completed.
In the extractive sector, the report raises concerns over a lack of transparency in the tax payments made by mining and oil companies, along with delays in revenue transfers to provinces and communities and poor execution of funds arising from natural gas resources.
By the end of 2025, there were 714.45 million meticais logged in unpaid expenses, representing 7.25% of mining revenues allocated for structural projects across the provinces, alongside 179.4 million meticais earmarked for communities.
Regarding funds from natural gas, of the 3.0097 billion meticais budgeted for 2025 to support strategic projects, only 1.3336 billion meticais were utilised, leaving 1.6761 billion meticais unspent.
The Administrative Tribunal asserts that the identified irregularities illustrate ongoing weaknesses in internal control mechanisms, accountability, and transparency in the management of public resources.
In response to these findings, the government acknowledges some shortcomings while attributing others to systemic errors, accounting lapses, and cash flow constraints, promising to rectify the irregularities in the 2026 State General Account.
The report further recommends that the Assembly of the Republic fulfil its oversight role by demanding clarity from the government and implementing tangible measures that go beyond mere rectification of accounting records, aiming for the accountability of managers, recovery of debts, and enhancement of public resource management.
