Thursday, September 19, 2024
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RGL-ETG dispute causes 446 billion dollars in losses to the Port of Nacala

The dispute between RGL and ETG over pigeon peas has resulted in significant losses for the Port of Nacala, amounting to approximately 446,000 dollars, according to information provided by the Port Director, Neimo Induna, to the “Lusa” news agency. The dispute began with an injunction filed by ETG in response to a lawsuit filed by RGL, which accused ETG of having denounced its activity in India. However, the Attorney General’s Office (PGR) considered this accusation to be unproven.

The Judicial Court of Nampula Province granted RGL an order to seize ETG’s assets, including real estate and ships, and froze its bank accounts, applying a bond of more than 3,871 million meticais. This led to the seizure of cargo, including pigeon peas produced in Mozambique, which ETG intended to export, similar to RGL’s activity. The situation resulted in the paralysis of activities at the port, with 620 containers having to be unloaded, although the problem only involved 450 containers.

Recently, at least 23 containers were the subject of a new inspection, in which at least one bag of beans with the ETG logo was found. The presiding judge at the Nampula Maritime Court, Boliz Júlio, mentioned that the inspection was not enough to clarify the situation, as bags from other entities were also found.

While the process is being evaluated, authorities have expressed concern about the image of the Port of Nacala, warning of the negative impact the dispute could have on the functioning of customs and the number of ships using the port, affecting revenues. The Port of Nacala recorded a record volume of cargo in 2023, reaching 3.1 million tons after the rehabilitation and modernization of the infrastructure.

The Attorney General’s Office (PGR) considered the amount of the bail set by the local Public Prosecutor’s Office to be “absurd and astronomical” and ordered the case to be closed on the grounds that no crime had been committed. ETG’s leader, Maheshkumar Raojibhai Patel, even appealed to Mozambican President Filipe Nyusi to intervene in the situation, claiming that he was the victim of expropriation of cargo and assets by competitor Royal Group Limitada (RGL).

This dispute is having a significant impact on the Port of Nacala and on the export operations of beans, boer and other agricultural products to India from this port region in northern Mozambique.

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