The Mozambican government has taken on the Abu Dhabi-based aviation consultancy, Knighthood Global, to assist it with the restructuring of the national carrier.
According to a statement by the consultancy, it will work with the airline’s new shareholders, Hidroeléctrica de Cahora Bassa, SA, Portos e Caminhos de Ferro de Moçambique EP, and Empresa Moçambicana de Seguros SA who have a mandate to procure the appropriate aircraft and re-establish a fleet.
On February 5, the Mozambican government authorised the sale of 91% of the state’s stake in LAM to state-owned companies, as a part of a plan to restructure the airline and acquire aircraft, reported here by Travel News.
The Mozambican government’s previous restructuring contract with South African aviation consultancy, Fly Modern Ark, from April 2023 till September 2024, is now allegedly the subject of a forensic audit the Mozambican Central Office for Combating Corruption reported in April.
Club of Mozambique reports that the investigation has so far found that LAM’s abnormal losses allegedly could not be solely attributed to the management of Fly Modern Ark, but were a result of long-term corruption at the carrier.
Fly Modern Ark has accused the Mozambican government of violating the agreement between the parties by only paying half of its final bill.
“As a result of this breach, Fly Modern Ark was forced to initiate legal proceedings. Despite these unresolved financial issues, we reaffirm our willingness to co-operate with the current government”, said Fly Modern Ark, according to the report by Club of Mozambique.
