Caros Amigos,



Caros Amigos,

Neste período em que o Banco de Moçambique (BM) comemora o seu XXX aniversário, aqui fica uma pequena reflexão em respeito a homens laboriosos e corajosos como o Governador Alberto Cassimo, os falecidos Administradores Carlos Aragão e Abel David e a centenas de trabalhadores e dirigentes que sacrificaram e continuam a sacrificar a sua juventude para que a instituição BM disponha na fase presente de uma coluna vertebral moçambicana, que a sustenta.

Esta base, permite a instituição BM guindar-se à estatura de uma instituição exemplar, onde o sucesso sempre assenta na disciplina, na sobriedade, na austeridade, na competência e na eficiencia no desempenho da missão.

Os emails abaixo homenageam os trabalhadores e dirigentes laboriosos, dedicados e honestos de ontem e de hoje do BM - a estes, sem excepção, manifesto a minha admiração e respeito, rendo a minha homenagem.

Inclino-me perante a memória e perante o trabalho abnegado dos que, com qualidade e competência, aceitaram o difícil desafio de edificar e dos que continuam a edificar a instituição Banco de Moçambique com exemplaridade reconhecida no mundo inteiro.

O Banco de Moçambique permanecerá grande sempre que, como disse o Presidente Armando Guebuza por ocasião do XXX Aniversário do BM:

- “fôr exemplo na luta contra a corrupção e o burocratismo”

- ”colocar-se na dianteira , no cultivo do espírito de honestidade, trabalho, competência e transparência .... na interação necessária com outras instituições... ” –

in Economia e Negócios, Jornal Notícias de 20 de Maio de 2005’

Parabéns BM e aos seus trabalhadores dedicados.

Saudações

Prakash Ratilal

Please read below emails from bottom......

==================================================

From: Sérgio Vieira [mailto:svunamuno@teledata.mz]

Sent: Saturday, May 14, 2005 5:55 PM

To: pr.ace@tvcabo.co.mz

Subject: Re: on joe’s report

Importance: High

Dear Prakash,

Thank you both for Hanlon’s article and your observations.

I tend to agree with what you wrote. I may add some few additional comments:

Contrary to Hanlon’s allegations, NEVER we nationalized banks. I do elaborate:

1. In Mozambique, previous to independence we had a number of private banks, all of them Portuguese, with the exception of Banco Standard Totta de Moçambique - BSTM - , if I remember 51% Totta & Açores and 49% Standard Bank, give or take some 2 or 3% if that much, owned by some private people in Mozambique;

2. Portuguese banks were nationalized in Portugal, on the aftermath of the 25th April.

3. BNU, in Mozambique, was handed to Mozambique at zero cost, according to the terms of Lusaka agreements who brought the end to the Portuguese colonial war.

4. Except BSTM by registration a Mozambican bank (I mean registered in Mozambique and not being a branch of any other bank, although the shareholders were foreigners), all the banks were branches of the Portuguese banks, already nationalized in Portugal.

5. Due to the extremely rigid foreign exchange control in the Portuguese colony of Mozambique, in particular since 1970 (defeat of Gordian Knot, the last and biggest Portuguese military offensive in all the 3 colonial fronts - Guinea -B, Angola and Mozambique), a lot of speculation took place, as a way to export capital, thus:

i . there was a tremendous jump in the building industry financed by the Portuguese banks. Owners would mortgage buildings 2 or 3 times to the banks, then asked the bank to paid them in Portugal and leaving the mortgaged property with the bank, never paying the capital or interests. As inheritor of the assets of BNU, we (I mean Banco de Moçambique - Prakash you remember) owned almost 80% of all buildings in Mozambique, we then handed that to APIE.

ii. Fake companies, or almost fake, Orizícola, Parceria do Xai Xai, etc...were in serious debt with the banks;

iii. Portuguese Airlines TAP organized the air bridge to Portugal to evacuate the Portuguese settlers (who paid for their tickets and enormous excesses of luggage) and made deposits in those branches of Portuguese banks, in order to repatriate the money to Portugal, as TAP).

iv. Settlers were invited to make deposits in the Portuguese consulate of Beira, witch in turn deposited in the branches of Portuguese banks.

6. When we realized that Mozambique was in practical terms requested to pay for the colonial speculation, air bridges and so on, we demand the branches of the nationalized Portuguese banks to make proof that their assets could satisfy their liabilities, including the capacity to pay back the deposits. We gave them one year for that.

7. As they were not in conditions to do that, we asked to the Portuguese HQ of these branches if they could guarantee the operation. They said no. SO THEY WERE FORCE TO CLOSE THE DOOR. We assumed all the responsibilities vis a vis the Mozambican labor force in the bank, as well as the responsibility to pay back the deposits of those with an identity, we refused to hand back the TAP money and the Portuguese consulate money, unless they would identify the owner of the deposit.

The reasoning of Hanlon concerning the predator nature of the emerging bourgeoisie, could be correct if he does not narrow that predator nature to Africa. Otherwise he does not explain the plunder of Ireland, of the French aristocracy and the Catholic Church, the genocide of American Indians, the slave trade to the Americas and the French colonies of Reunion, Madagascar, Mauritius, Seychelles, etc...

Previous to Mozambican independence a black could not be a taxi driver, a bus driver, to sell in stall in the market, to iron brand his cattle, to held land with a title of property, etc... Only if the black was a Portuguese citizen he could that (in the 50’s less than 6.000 were Portuguese citizens). Back in 61 all Indian citizens had their properties confiscated and were expelled as a retaliation to India for liberating Goa.

The creation of middle strata of blacks and mixed people is a deliberate result of the post independence policies. You remember Samora saying the State is not going to sell matches and needles. You remember our policy in the Banco de Moçambique of making loans so a person could operate a shop and other things.

I belong to those who lead the expansion of the bank activity to all districts of Mozambique. One of the reasons of the success of the Metical creation and exchange was that national presence of the bank. I strongly deny that corruption deprived the bank of recuperating the loans. The loan for the truck, well the truck was burned, as well as the tractor, or the rural shop. Only in Caia 200 TRACTORS WERE BURNED!!! Caia was delivering 150.000 T of maize, 40.000 T of potatoes, etc.

When peace returned we would have had the need for an internal HIPIC. We could not afford that and you know the reasons. When we privatized to Mozambicans the cashew industry, you know the blackmail to take off the surtax on exporting raw cashew. Perhaps because THEY have learned, or because the sugar industry was privatized to foreign capital, the sugar industry was not submitted to those terrible measures.

I belong to those who opposed to hand the Mozambican banks to foreign capital, NOT BECAUSE I WANTED TO PROTECT MISMANAGEMENT OR CORRUPTION, but because I knew, and facts proved right, that Mozambicans would be replaced by foreigners, and the district branches would be closed depriving the peasant and shop owner of a place to make a deposit, or to get a loan.

The murders of Lima Felix and Siba Siba we do not have proof to say that it was related do banking problems. Yes we think so, I do think so, but I have no evidence, but circumstantial ones. And I may add that a thief is not necessary a murder. So we speculate.

Nobody from outside pointed the finger to the public attorney Diamantino. Nobody from outside sacked the entire top apparatus of the State Attorney, so light could me made. Comiche was and is member of the Political Commission of FRELIMO, and the decision on the sacking the top of the State Attorney could never be made without the agreement of the Political Commission of FRELIMO. Nobody from outside forced Mozambique to bring to jail the murders of Carlos Cardoso.

I regret that some friends from outside pretend to become the moral conscience of Mozambique. We Mozambicans fight against corruption, we Mozambicans want to bring to jail the criminals. We are grateful to our friends, but we will never ask them to replace us in our tasks. During the liberation struggles WE DID NOT ACCEPT THAT OTHERS REPLACED US IN PAYING THE BLOOD DEBT to make our country free. We remain the same people.

Let us be serious. We were not involved in the Lockeed scandal, in the Savings and Loans collapse in the USA, in so many dirty affairs in the USA, UK, France, Italy, Spain, Portugal, Holland, Germany, in the murder of Olof Palme, in supporting the apartheid regime to build nuclear weapons and so many affairs. We did not promote and upheld the Mobuto and Idi Amin and Eyadema, and Pinochet and so many corrupt leaders.

We are not a corrupt people, we have not a corrupt regime, we have not a corrupt government, even if in Mozambique like in all other countries we have corrupted and greedy persons in the different elites, perhaps in less quantity than in the First World, and certainly cheaper.

My apologies for my third rate English.

Dear Prakash, you may circulate my views, they are not secret, neither to be hidden.

Um obrigado e um abraço,

Sérgio Vieira

-----Original Message-----

From: Joe Hanlon [mailto:J.Hanlon@open.ac.uk]

Sent: Saturday, May 14, 2005 12:14 AM

To: pr.ace@tvcabo.co.mz

Subject: articles & books

Dear Prakash,

Jason Calder from the Carter Center passed on your notes about my article.

Unfortunately, when I did the research for the article (4 years ago) you were not in the country so I was unable to interview you, so a few mistakes crept in. Apologies. I am also interested in your thoughts on the latter part of the article on privatisation and corruption.

In case you have not seen it, I attach a more recent article which caused some discussion in Maputo.

I am planning another book on Mozambique development and would be very interested in talking to you about the development bank discussion and other development issues in Mozambique. I will be in Maputo next 28 June thorugh 14 July. Is there any chance of a chat?

Many thanks.

Best regards

Joe Hanlon

[pic]

================================================================

----- Original Message -----

From: prakash ratilal

To: jason calder

Sent: Friday, May 13, 2005 9:31 PM

Subject: on joe’s report

Dear Jason,

Thanks for your below email.

1. have seen previously this report of Joe Hanlon on bank corruption – unfortunately did not have time to respond to some of the points. While agreeing with most of have been written by Joe Hanlon, I would like to make it clear that I do not agree with the following paragraph inserted in page

2. I (PR) quote and comment in between Joe Hanlon (JH) paragraphs:

JH. “First, we argue that the socialist and wartime banking system created the conditions which made later corruption easy. In the early years of independence, Mozambique showed an incredible degree of integrity, honesty and even puritanism (Hanlon, 1991:230-2).”

PR (Prakash Ratilal): I agree

JH. “Because Frelimo did not give a high priority to the banking system, proper systems were never created and procedures remained irregular.

PR: This do not reflect the reality and events. In June 1975, at the independence day, there were no central bank, no issuing bank and no international correspondance relationship being developed from Mozambique – all these functions where done in the Metropole, Portugal. The first black Mozambican to become a chief of section was in 1969, six years before independence. Similarly, in 1975, at independence day there were no chief of division, no Director, no member of the Board in any bank. Within 2 years 95% of the portuguese colony left Mozambique. I was 24 years old coming out of the university and was made President of a small construction bank. Many other Mozambican had to assume senior positions and quickly had to learn and run operations. Lot of efforts has been done in training inside and abroad. The system was minimally running with no major claim from our international partners nor internal convulsion from those depositing. The 1980, the change of currency in 3 days throughout the country was a incredible success.

JH. “So long as it was according to the plan, company deficits were covered by loans which were never expected to be repaid. The overlap between the treasury and the banking system was total … “

PR: hang on… with an ongoing war with Rodhesia and later with apartheid forces would anyone expect that the Government should have closed factories, sugar units, railways operations for not repaying credits due to the war? This was a premeditated policy to maintain jobs and waiting for better time. Naturally that we were clear that the printing money was the base for high inflation. This was the formula to have everyone paying for the efforts to defend from the aggressions and keep some stability, while working for peace. But this is what is happening today when the increase of US deficit is in part to sustain ongoing operations in Iraque/Afganistan with the aim to stop terrorism. I wonder if someone can explain me how it was in 1942/45 in London and elsewhere in Europe… with all rationing of food supply…

The overlapping between treasury and banking system, in this circumstance, was not avoidable: these were the first years of Mozambique. Ministry of Finance (which dis not exist before) and the central bank was being created at the same time… Could it be done differently with only 6 Mozambican’s economists at the time of independence? I am not trying to defend saying that everything was fine, but we should not resume in such a way that it seems that we were absolutely naïve and everything was out of control.

JH. “.. when Samora Machel was travelling, someone from the presidency would simply phone BdM or BPD and ask for thousands of dollars, in cash, for the delegation. In a highly authoritarian country, any bank official will follow the instructions of the president.

PR: this is not true at all! All Gov. Departments and the Presidency had their accounts and always there were 2 signatures. It was compulsory that any cheque to be verified for signature and adequacy of funds, prior to be cashed out. Myself as Governor of central bank had no power of signature over any bank’s assets. Under the Board approval, I had power to determine whose 2 signatures were valid to enforce Bank of Mozambique, internally and externally. One can check with any major international bank in USA and Europe, then with correspondent relationship with Bank of Mozambique, and will find a list of signatures from the central bank in which always there is a need two signatures.

JH. “The system may have been irregular, but it was not corrupt, and it worked because of the honesty, integrity, and good will of the people in the banking system. But that left a system dependent on individuals, with few regulatory systems and controls in place. By the end of the Samora era, extravagance was creeping in, as presidential delegations going abroad took more money from the banks for shopping on foreign trips. With no rules, no one in the banking system could say no. That created fertile ground for the corruption that came later”.

PR: Not totally agreeing on the issue of rules.. there were some rules - there were no such an anarchy. Naturally the overall system were not totally adequate. We inherited systems from a colony of a peripherical metropole, with those times technology…. The more serious weakness was the lack of cadres to face the challenge of a newly born country and the effects of the war.

3. If you have the Joe Hanlon’s email please send this to him with all my respect for his courage for dealing with hot issues related with the technical bankruptcies of 2 existing banks. Can you please copy this email to those you sent the same report?

Thanks

All the best for you.

Prakash Ratilal

--------------------------------------------------------------------------------------

-----Original Message-----

From: Jason Calder [mailto:jcalder@emory.edu]

Sent: Tuesday, May 10, 2005 9:40 PM

To: Ed Cain (E-mail); Vu Dang (E-mail)

Cc: Hannah Feinberg (E-mail); Prakash Ratilal (E-mail);

Dr. Roger Norton (E-mail); Mark Simpson (E-mail); wrathall@uga.edu

Subject: Bank

Importance: High

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download