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[BUSINESS] · Mozambique · 6 sources

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Linhas Aéreas de Moçambique faces corruption and fleet crisis

Linhas Aéreas de Moçambique (LAM) is facing a severe crisis involving widespread corruption allegations, mismanagement, and operational collapse. Former Director-General João Carlos Pó Jorge is facing 31 charges, including embezzlement, fraud, and mismanagement. The prosecution alleges he bypassed legal procedures to authorize fraudulent catering payments, uncontracted uniform production, and unauthorized aircraft maintenance in Nairobi.

Other former executives are also implicated. Former treasurer Eugénio Mulungo is accused of attempting to bribe investigators with 500,000 meticais to prevent arrest warrants. Pascoal Bernardo, former director of operations, is accused of validating fraudulent invoices. Several former managers have been detained since February as the judicial process continues in Maputo.

Beyond legal issues, the airline's fleet is in critical condition. A Bombardier Q400 aircraft, purchased for approximately USD 6.5 million, is currently grounded due to severe engine flaws, with technical reports suggesting a high risk of in-flight failure. This follows a broader operational decline that has left the airline with only one operational aircraft, leading to suspended routes and public outcry over service reliability and rising costs.

Entities

Eugénio Mulungo · Hilário Tembe · João Carlos Pó Jorge · João Pó Jorge · Linhas Aéreas de Moçambique · Maputo Judicial Court · Pascoal Bernardo