The Center for Democracy and Development (CDD), a Mozambican NGO, has asked the state for information on a recently announced debt of 247 million euros to the Hidroeléctrica de Cahora Bassa (HCB).
The CDD considers “urgent” “a report from the Institute for Public Holdings Management (IGEPE) on what is really going on at HCB and what strategies are being used to mitigate financial risk,” the statement said.
The CDD’s position comes 20 days after it asked for more information about the loans in question, one for €125 million from the African Development Bank (ADB) and the other from the French Development Agency (AFD) and the European Union (EU). 122 million euros.
“A month after the initialing of two important financing agreements, the official website of the company does not contain any information about the loan packages, nor about their reasons, nor about how they should affect the financial position of the company, state revenues and Mozambicans as shareholders. “, reads the communiqué requesting IGEPE to intervene.
CDD highlights that, in addition to being mostly public (85% state owned), HCB has dispersed 4% of its capital on the stock exchange, thus deeming the lack of information unreasonable, which it classifies as “secrecy.” .
“This situation is worrying not only because of the lack of transparency of the process, but also because of the (political) timing of the multi-million dollar debt”, that is, at the beginning of a new electoral cycle, the CDD points out, referring to this year’s municipal elections and the general in 2024.
HCB, along with insurance company Emose and the state-owned railway company (CFM), are the only ones in the public business sector (SEE) “with a strong ability to meet financial obligations,” notes the CDD, fearing that “the company is moving towards those considered cancer companies in SEE”.
Lusa tried to get a response from HCB, but the company sent clarifications for later.