Budget Monitoring Forum urges mozambican Government to fully disclose terms of $142 million payment to UBS

The government paid approximately $142 million to creditors as part of an agreement reached with Credit Suisse/UBS regarding the $522 million loan granted to ProIndicus, one of the companies involved in the hidden debts scandal. These debts, amounting to over two billion dollars, were incurred during Armando Guebuza's second term.

In a recent statement, the FMO expressed its concern and indignation over the settlement of the debt through the out-of-court agreement, involving a payment of $142 million. 

The NGO disagrees with the Mozambican government's decision to withhold crucial details of the agreement with UBS, which not only absolves UBS of any responsibility for the hidden debts but also exempts the bank from accountability for its role in the fraudulent scheme that led to the loans, effectively granting them a "bonus" of $142 million. The FMO considers the agreement to be disadvantageous for Mozambique.

"The FMO urges the Government to fully disclose the terms of the agreement and to explain to Mozambicans, in detail, the reason for the payment of $142 million on a debt considered illegal and the consequences for the Mozambican people now and in the future," the statement reads. Additionally, the NGO requests that the government clarify the origin of the funds used to make the payment to UBS, especially in the current context of resource scarcity for financing public expenditure, which adversely affects social sectors directly impacting the quality of life of Mozambicans. The agreement, covering $522 million of a total of $622 million, was announced in October without further details.