LAM – Linhas Aéreas de Moçambique Investigates Major Financial Irregularities and Fuel Debt Dispute
LAM – Linhas Aéreas de Moçambique is currently embroiled in an internal investigation following the disappearance of approximately USD3.2 million from its ticket sales in December, as disclosed by the airline’s restructuring director, Sérgio Matos, during a recent press conference in Maputo. Efforts are underway to trace the flow of funds from various point-of-sale terminals to unearth the methods and locations involved in the diversion of cash.
The investigation was initiated two weeks prior to the announcement, with Matos highlighting an ongoing operation to determine the whereabouts of the missing funds. Despite increased sales, the airline observed significant financial shortfalls, prompting a comprehensive review of its internal security measures and the collection of point-of-sale terminals across the network.
Matos pointed out a pattern of embezzlement, with discrepancies amounting to between USD2 million and USD3 million in the final quarter of the evaluation period, culminating in a USD3.2 million deficit in December alone. Suspicious activities were also noted in the cash collection process, where delays in depositing the collected funds raised further concerns about financial mismanagement.
The investigation also uncovered an unaccessible LAM account in Malawi containing USD1.2 million and instances of employees misappropriating company funds for personal use. These revelations have cast a shadow over the airline’s financial integrity, with implicated employees allegedly attempting to deflect blame.
Amid its restructuring efforts, LAM has encountered additional challenges in its fuel supply arrangements, with anomalies detected in jet fuel provisioning. Discrepancies in fuel documentation versus actual capacity have led to questions regarding unaccounted fuel quantities, exacerbating the airline’s operational difficulties.
The situation reached a critical point on February 11, when LAM experienced fuel shortages, resulting in significant flight delays and passenger inconvenience. The dispute over the cause of the fuel shortages and responsibility for the USD70 million debt to state-owned petroleum company Petromoc has further complicated the airline’s efforts to stabilize its operations.
In response to these controversies, LAM’s senior management issued a letter to Mozambique’s Minister of Transport and Communications, distancing themselves from the statements made by Matos and Fly Modern Ark, while denying allegations of managerial involvement in embezzlement or sabotage.
As LAM navigates these financial and operational challenges, the outcomes of the internal investigation and the resolution of the fuel debt dispute will be crucial in determining the airline’s path forward. The scrutiny of its financial practices and fuel supply arrangements underscores the importance of transparency and accountability in restoring trust and ensuring the carrier’s sustainable recovery.