The Mozambique government is set to commission a forensic audit of the accounts of LAM, the national airline, covering the past decade. This audit is scheduled to be completed by October, alongside a company restructuring. The government representative indicated that a reduction in the workforce, currently around 800 employees, may be necessary due to the limited fleet of only four aircraft.
Mozambican President Daniel Chapo, addressing the matter on April 28, highlighted the presence of “foxes and corrupt individuals” within the state-owned LAM, suggesting that these elements create “conflicts of interest” hindering the airline’s restructuring efforts.
Presenting findings from the first 100 days of his administration, President Chapo criticized the conflicting interests within the airline, stating that they obstruct initiatives to have LAM acquire its own aircraft.
“One of the impactful actions planned for these 100 days was the acquisition of three aircraft for LAM. However, upon deciding that at least three aircraft would be procured within this period, it was found that within LAM, people akin to putting foxes in charge of a henhouse were entrusted with responsibilities,” Chapo stated.
He further remarked that these individuals prefer LAM to continue leasing aircraft, as it allows them to earn commissions. Consequently, the government, committed to restructuring, had to redirect the process to prioritize public interests over individual or group interests.
Earlier, on February 5, the government approved the sale of a 91% stake in LAM to state-owned companies, with proceeds earmarked for acquiring eight aircraft.
Per the resolution by the Mozambican executive, only three state-owned companies—Hidroelétrica de Cahora Bassa (HCB), Caminhos de Ferro de Moçambique (CFM), and Empresa Moçambicana de Seguros (Emose)—are authorized to purchase the state’s share in LAM.
The President assured a comprehensive restructuring of LAM, including human resources, promising a new era for the national airline.
Chapo criticized inefficient inspection processes in the aircraft acquisition initiative, stating that representatives traveled to Europe for 15 days with funds from new shareholders, yet returned without inspecting a single aircraft, an outcome deemed illogical.
He concluded with a resolve to cleanse the company of corruption, saying, “We decided to cancel the tender and restructure the company, installing competent individuals dedicated to serving the Mozambican people.”
LAM has faced operational challenges over the years, with issues stemming from an aging fleet and lack of investment. These were linked by experts to inadequate aircraft maintenance, despite several non-fatal incidents and frequent flight cancellations.
In response to these chronic problems, South Africa’s Fly Modern Ark (FMA) was engaged. The contract, which began in April 2023, ended on September 12, 2024. FMA was tasked with implementing a revitalization plan for LAM after years of operational difficulties.
Upon taking the helm, FMA acknowledged LAM’s estimated debt close to $300 million (269 million euros).
The Mozambican Public Prosecutor’s Office, in April, initiated an investigation into the agreement between FMA and Mozambican authorities for LAM’s restructuring. The inquiry, which is still ongoing, aims to identify the origins or ownership of payment terminal machines used in ticket sales, assess financial losses, and pinpoint accountable parties, although no formal charges have been made yet.
