IGEPE calls for PGR to investigate alleged misappropriation of funds at LAM

Following IGEPE's directive, a Request for Investigation has been submitted to the Public Prosecutor's Office of Maputo City.

The decision is outlined in a press release from the Institute for the Management of State Holdings, which TORRE.news accessed today. The press release expresses the state shareholder representative at LAM's complete outrage at the company's management. LAM is the entity that manages and coordinates the state's business sector.

According to the press release, IGEPE became aware through media reports that Fly Modern Ark (FMA), the company hired to advise Mozambique Airlines, SA (LAM) on its restructuring process, identified occurrences of corruption, some of which involved the misappropriation of funds, acquisition of real estate for third parties, establishment of an offshore bank account, and POS systems held by individuals unaffiliated with LAM.

"Given the seriousness of the information that has come to light, IGEPE, as the state shareholder representative at LAM and the entity managing and coordinating the state's business sector, instructed FMA and LAM to ascertain the facts and immediately report any suspicions to the competent authorities, resulting in a Request for Investigation being submitted to the Public Prosecutor's Office of Maputo City," the statement reads.

In the document shared with the press, IGEPE reaffirms its commitment to integrity, transparency, and legality in the management of public funds and expresses its willingness to collaborate with the investigations to uncover the truth.

It should be noted that after the LAM funds misappropriation scandal was uncovered, revealing a scheme involving the use of POS systems where payments allegedly went into the account of a bottle store owned by a senior company official, messages began to circulate on social media suggesting that the referred bottle store was owned by the president of IGEPE.