The Santa Casa da Misericórdia de Lisboa (SCML) has granted financial support to Mozambican gambling operator Sojogo, assuming a bank guarantee of 65.8 million meticais (approximately 1 million dollars), with the aim of stabilizing its financial situation. The information was released on Tuesday (14) by Fernando Sousa Afonso, former vice-provider of SCML, during a hearing at the parliamentary commission of inquiry into the strategic and financial management of the Portuguese institution.
Bank guarantee to avoid collapse
According to Sousa Afonso, the Santa Casa da Misericórdia de Lisboa did not make a profit from its stake in Sojogo, but remained continuously involved in the company’s operation, including intervening financially to prevent the Mozambican operator from facing collapse. The support was provided through a bank guarantee, enabling Sojogo to obtain a loan from a Mozambican bank to rebalance its finances.
Santa Casa’s history of involvement in Mozambique
SCML’s relationship with the gaming sector in Mozambique began in 2011, when it became chairman of the board of directors of Sojogo, the company that holds the exclusive concession for social gaming in the country. According to Sousa Afonso, SCML chose to strengthen its presence in Mozambique in order to offer closer support to the operator, which was facing serious financial and operational difficulties.
The former vice-provider also explained that the gaming department in Mozambique existed before the country’s independence, but that in recent years SCML has become more actively involved in the management of Sojogo due to the challenges the company was facing. At a critical moment, Santa Casa had to take on a bank guarantee to make a loan viable that would help stabilize the company’s operations.
Lack of return and doubts about viability
Despite the financial support, Sousa Afonso guaranteed that all the decisions taken by SCML were made with the due knowledge and approval of the Santa Casa Board and the general assembly. However, he acknowledged that so far Santa Casa has not obtained a significant return on its stake in Sojogo, which raises questions about the viability of the operation and the future of the company.
Parliamentary investigation and challenges for Sojogo
The revelation of financial support for Sojogo comes in the context of increasing scrutiny of SCML’s financial management, especially in relation to its operations outside Portugal. The Portuguese Parliament continues to investigate the institution’s financial decisions, including the impact of its international partnerships, such as its activities in the gaming sector in Mozambique. Meanwhile, Sojogo maintains its operations in the country, although it continues to face financial sustainability challenges. Uncertainty over SCML’s continued support and the need for strategic adjustments are central issues for the future of the operator and the gaming sector in Mozambique.
