Ver Angola

Economy

Government settled almost 362 billion kwanzas in overdue debt in 2022

The government paid, in 2022, 362 billion kwanzas of debt to creditors, with emphasis on the National Electricity Company (ENDE) and Chinese companies, according to a report by the Ministry of Finance (Minfin).

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Payments were made under 370 internal debt settlement agreements between the Ministry of Finance and creditor companies, of which 282 were ratified last year and the rest in 2021.

Most of the debt was paid in a modality involving payments in cash, Treasury Bonds and offsets or tax credits, with cash payments having the greatest weight (60 percent).

Minfin was the entity with the highest volume of debt paid in this period (23 percent of the total), followed by the Provincial Government of Luanda (GPL) with 18 percent and the Ministry of Energy and Water, with 10 percent.

"The settled debts associated with the Ministry of Finance represent payments of arrears related to the construction of centralities (residential neighborhoods with controlled costs) and to Ende, within the scope of subsidies to the price of energy, through the Instituto de Gestão de Activos e Participações do State (IGAPE)", says the report.

Among the 308 companies that benefited from payments, the volume of debt paid to ENDE stands out, as well as the Chinese company Synohidro Construction and the Angolan company Carrinho Empreendimentos.

Chinese state-owned conglomerate Citic Construction comes fourth on the list and waste collection operator Nova Ambiental comes fifth.

SEIP Infraestrutura e Construções, linked to the Brazilian construction company Queiroz Galvão, the Cuban Antex, LTI Logística e Transportes were, respectively, in sixth, seventh and eighth place.

Camarufi, a company allegedly belonging to generals Hélder Vieira Dias "Kopelipa", Leopoldino do Nascimento "Dino" and a Lebanese partner, is also on the list of the ten creditors that most benefited from payments, as is the Slovenian company Proracun.

The largest category of payments (60 percent) corresponds to expenses associated with the provision of services such as cleaning, security, consulting services, study and inspection, transport services, supply of medicines, among others.

Capital expenditure, mostly associated with infrastructure construction, such as roads, buildings, power stations, water distribution systems and others, represented 27 percent of total payments.

Lastly, transfers - debts owed by the State to companies that provide services or goods to the population in general, whose price is subsidized - corresponded to 13 percent of the debt paid.

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