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Elisal's debt leaves Luanda landfill management company on the brink of bankruptcy

Best African Solutions, the company that managed the Luanda landfill between 2012 and 2017, is on the verge of bankruptcy due to a debt of more than 30 million euros from the entity that manages cleaning and sanitation in Luanda (Elisal).

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A source contacted by Lusa said that the company under Angolan law and Italian and Brazilian capital is "practically bankrupt" because it has also incurred debts with foreign suppliers and has not been able to recover the amount related to the services it provided to Elisal, despite having already been recognized as a State debt.

According to documents to which Lusa had access, the first agreement to recognize the debt for the years 2015/2016 was signed on November 21, 2016 by Manuel Mateus Caterça, coordinator of the Management Committee of Elisal and current chairman of the Board of Directors.

At the time, Elisal already recognized a debt of 4,762,364,822.68 kwanzas.

In April 2017, the landfill management contract ended and was not renewed, due to Elisal's financial difficulties in honoring the payment for services. An agreement was then reached for the passage of operations and settlement of the remaining debt, "so as not to create difficulties in the operation of the landfill," according to the same source.

However, "Elisal did not comply with what was agreed," he added, clarifying that in addition to the credit directed to the Public Debt, there is still an outstanding credit totaling 6,117,239,822.00.

On the date of recognition of this debt, the total amounted to 31.8 million euros, according to a source from Best African Solutions.

The company had, however, contracted debts with suppliers of goods and services for the management of the Landfill in Mulenvos, which will have to be paid in euros.

According to the same source, "so far there has been no movement by the Angolan authorities to resolve this debt", despite interventions by the Government and Italian institutions.

Elisal, Luanda and Sanitation Company of Luanda, is the entity of the Government of the Province of Luanda dedicated to the cleaning and sanitation of the capital.

In recent months, Elisal has faced several strikes with workers demanding better working conditions and the payment of wages and subsidies in arrears, complying with the memorandum of understanding signed in December, between the Provincial Government of Luanda and the workers' union commission. .

Agência Lusa contacted the Provincial Government of Luanda to obtain clarification on Elisal's debt, without receiving any response.

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