Court orders CTA to settle MZN 26 million debt with Mondego
The Confederation of Economic Associations of Mozambique (CTA) has acknowledged a debt of 26,664,062 meticais owed to the construction company Mondego, resulting in the seizure of one of its properties.
The debt pertains to the construction of residences known as the "Casa do Empresário" in Xai-Xai and Inhambane. However, the CTA asserts that the amount demanded by the construction company does not reflect the actual work completed, particularly in the Inhambane project, which remains unfinished.
The CTA's response follows a legal action initiated by Groupe Mondego in May 2023, wherein the construction company filed a declaratory action against the CTA, demanding payment of the stated debt.
In its defense, the CTA contested the amount, requesting a revision on the grounds that the amount charged did not accurately reflect the services provided, especially in relation to the "Casa do Empresário" in Inhambane.
According to a press release issued by the CTA, the organization clarified that the agreement signed with Mondego in May 2017 stipulated that the constructions were to be carried out under a "turnkey" concept, which was intended to facilitate the necessary financing to settle the agreed amount. However, a payment made four months prior allegedly violated the contract's spirit.
Despite the CTA's contestation, the court ruling was partially unfavorable to the CTA, reducing the initial amount to 24,338,974.40 MT. Dissatisfied with this outcome, the CTA has filed appeals, which are currently pending before the Supreme Court.
Meanwhile, Groupe Mondego proceeded with an execution process at the 13th Section of the Judicial Court of the City of Maputo, leading to the seizure of a CTA property. The confederation claims it became aware of the seizure through the media before being officially notified.
Deeming the execution process detrimental to its interests, the CTA filed for a security provision to suspend the execution.
However, while awaiting the Supreme Court's decision, the CTA's management decided to pay the amount demanded by Mondego, thus assuming the debt.
In recent years, under the leadership of Agostinho Vuma, the CTA has been linked to various scandals in Mozambique's economic sector, tarnishing the confederation's reputation and intensifying scrutiny over its financial and contractual management.
