Africa-Press – Mozambique. The Mozambican Minister of Transport and Logistics, João Matlombe, has announced that the publicly-owned company Mozambican Airlines (LAM) will lay off 80 employees considered surplus as part of its restructuring project.
Over the last 10 years, LAM, which used to operate with just two airplanes, has been shaken by a financial crisis involving corruption practiced by the company workers during the acquisition of services. The company has recorded debts with suppliers, valued at over 230 million dollars as a result of embezzlement.
Over the last year, LAM was under the management of the South African company Fly Modern Ark (FMA), which was hired by the government to bring the company into profitability and rescue it from bankruptcy. However, the effort did not solve anything.
According to the minister, who was speaking on Thursday at the country’s parliament, the Assembly of the Republic, answering requests for information from the deputies, the dismissal of employees will help the company contain unnecessary expenditures and redirect them to other priorities.
However, he said, there are more actions planned, as the remaining employees will be reassigned.
“We will close unnecessary stores, outsource customer service and other services. We also intend to introduce an integrated accounting system that will reform LAM’s holdings in various companies, including closing or exiting non-strategic holdings,” explains João Matlombe.
According to the minister, the current fares practiced by the flag carrier reflect a still high cost structure, conditioned by excess personnel, high leasing costs, and dependence on fuel imports (JET A-1).
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