Allowances for cost of living relief: MDM calls for publication of beneficiaries’ names

The Mozambique Democratic Movement (MDM), the country’s second largest opposition party, has called on the government to grant allowances to the poorest strata of the populations, to cope with the current high cost of living.

Jul 19, 2022 - 17:15
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Allowances for cost of living relief: MDM calls for publication of beneficiaries’ names
MDM

Speaking on Saturday, in Maputo, at the opening ceremony of a meeting of the MDM Political Commission, MDM President Lutero Simango, also called for publication of the names of all those benefitting from the more than 135 million dollars that will be paid in allowances.


To deal with transport costs, the government plans to introduce a “passenger subsidy” paid by digital card. Before that is in place, the government will pay a subsidy to the owners of the minibuses (known as “chapas”) that provide much of the country’s urban passenger transport.


Simango wanted publication of the names of all those benefitting from these payments. He feared that these subsidies were a form of political clientelism, which would favour corruption.


“The refusal to take the right economic and fiscal measures to alleviate the cost of living, throughout the national territory, resisting the promotion of targeted subsidies, is a clear demonstration that millions and millions of Mozambicans are not an integral part of the governance agenda of the ruling party, Frelimo”, claimed Simango.

Another measure, according to Simango, would be the reduction of Value Added Tax (VAT), from 17 to 12 percent, on the import of fuels, which would have a significant impact on fuel prices.


Simango added that what he called “the silent and faceless demonstrations of last Thursday” should be understood as a sign of “lack of confidence in the current governance.”

But, in reality, there were no demonstrations at all on Thursday. There were threatening messages posed on WhatsApp and other social media, warning minibus drivers that, if they took their vehicles onto the streets, they would be set on fire.


As a result, there was a drastic shortage of public transport on Thursday morning, making it impossible for many citizens to go to work.


Meanwhile, the government and the Federation of Road Transport Operators (Fematro) have agreed that the first instalment of the subsidy for chapas will be 113 million meticais (about 1.77 million US dollars, at the current exchange rate), according to a report in Monday’s issue of the independent newssheet “Mediafax”.


The declared purpose of this subsidy is that the transport operators should not run up further losses because of the increased price of fuel. The money began to be disbursed last Thursday, as had been agreed the previous day at a meeting between Fematro and a government delegation headed by Transport Minister Mateus Magala.


This money is being distributed to cooperatives of operators registered with the Maputo Metropolitan Transport Agency (AMT). As from this week, cooperatives registered with the Transport and Communications Fund (FTC) will also receive payments.

It is thought that the 113 million meticais will last for about two months. Strict control over the payments, however, will only be possible when an effective digital platform is established. This will give figures for how many passengers use each transport operator, which should allow a fair distribution of the subsidy.
(AIM)