On 4th July this year, the Mozambican government announced, through its spokesman and Minister of State Administration and Civil Service, Inocêncio Impissa, the intention of the National Social Security Institute (INSS) to join the shareholder structure of Mozambique Airlines (LAM)1, a company majority owned by the state, with 96% of the shares2. This intention, proposed as part of an effort to recover the national flag carrier, raises serious concerns from a legal, economic and institutional point of view.
The proposed investment in LAM by the INSS directly violates the legislation governing the application of compulsory social security funds. Article 26 of Law no. 4/2007, of February 73, in conjunction with article 107 of Decree no. 51/2017, of December 4, establishes that INSS funds must be invested in accordance with the principles of security, liquidity and profitability and in companies listed on the stock exchange.
