The state business sector presents a high “fiscal risk”, with many public companies having difficulties in paying their debts. According to the CIP study, Mozambique Airlines, TMCEL, Aeroportos de Moçambique, PETROMOC, Mozambique Electricity and the National Hydrocarbons Company are the companies that contribute most to the deterioration in the performance of the state business sector.
Gift Essinalo, author of the study, says, for example, that Mozambique Airlines (LAM) is in an “alarming situation.” The company “represents a high fiscal risk and may force the state to assume its debts.”
BETTER MANAGEMENT: LOWER SALARIES FOR MANAGERS
The researcher says that one strategy to minimize the fiscal risk is to create more legal conditions for the State to intervene in the restructuring of companies.
On the other hand, it will be necessary to lower the salaries of managers, with the introduction of “a guiding framework for salary policy for members of the boards of directors of companies in the state business sector,” says Essinalo.
Economist Naimo Faquirá reminds us, however, that state intervention to get companies back on their feet could be costly.
“If the State supports all the companies, naturally it won’t have the resources to satisfy other obligations, such as building schools, roads and hospitals. All the money will be diverted to cover these expenses,” comments Faquirá.
