Extraction and Power Preservation
Edited by Inge Amundsen
Chapter 6: The ‘secret loans affair’ and political corruption in Mozambique
In 2016, the ‘secret loans affair’ sprung on to the Mozambican political scene with the discovery that three government-owned companies – controlled by the military intelligence – had borrowed around US$2 billion without informing either the Mozambican parliament or Mozambique’s donor community. Suspicion soon emerged of corruption and about the politicians involved. Donors and the government hired the audit firm Kroll to investigate, but by 2018 the full contents of its report remained unpublished. This lack of transparency jeopardised the Mozambican government’s standing with the public and the development partners, contributing to an economic crisis and Mozambique defaulting on its debt commitments. The secret loans case casts light on the role of political corruption in Mozambique. This chapter argues that this affair and the political economy of systemic corruption help explain how Mozambique was plunged back to its current state of high debt, high poverty and low growth conditions. The chapter tracks the evolution of the political–economic elite at the helm of the Frelimo party in the post-independence era and looks at the dual role of political corruption: as a quest for enrichment (the formation of an economic elite) and then as a means to secure political power (the consolidation of the political elite).
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.