Maputo, July 1, 2025 (Lusa) - The Bank of Mozambique (BM) acknowledges that the Administrative Court (TA) ruling overturning the decisions on the intervention in Moza Banco, one of the country’s five largest banks, is a “significant development,” and looks forward to assessing its impact.
The position appears in the central bank’s 2024 report and accounts, which Lusa saw on Tuesday. Under the heading “subsequent events,” it states that the court notified the central bank of the ruling, marking the first official reaction to the court decision since it was announced in April.
‘Although the content of the decision represents a significant development, the competent authorities must still follow up on the ruling with further action. In fact, at the date of approval of these financial statements, we cannot yet estimate the possible impact of the ruling,’ it reads.
On 9 April, Moçambique Capitais said that the Administrative Court ruling overturning the decisions on the intervention in Moza Banco confirmed its activity remains unaffected and that it was in contact with the central bank.
“This ruling, signed unanimously by the 16 judges, puts an end to the dispute between Moçambique Capitais and the central bank, and contacts are already underway with the competent authorities to determine the best solution for all interested parties,” said a statement to shareholders issued by Moçambique Capitais.
“This process allows the normal functioning of Moza Banco’s current activity to continue uninterrupted,” said the bank’s founding company, which the BM removed from its management when it intervened in 2016, resorting then to the courts.
The Administrative Court plenary upheld the decision to declare null and void the administrative acts of the BM and the intervention in Moza Banco, previously owned by Portugal’s Novo Banco, rejecting the central bank’s appeal.
At issue, according to the Administrative Court ruling reported by Lusa in April, is how the central bank carried out the intervention in Moza Banco - citing at the time the bank’s financial situation and its systemic risk - announced by a notice published on 14 November 2016 in the Boletim da República (BR).
“It is easy to see that it came into force and began to produce legal effects on 14 November 2016, when in fact BM intervened Moza Banco on 30 September 2016, before the publication of the controversial notice,” reads the ruling, notified on 1 April, In response to the appeal against the same decision of the previous instance, which BM, whose governor has been Rogério Zandamela since August 2016, and Moza lodged, "The appellant, in its position, mistakenly argues that the BM governor’s notice in the BR was unnecessary to legitimise the intervention of Moza Banco. However, it proceeded with the publication of the relevant notice 44 days after its intervention," adds the ruling, which fully confirms the first decision in favour of Moçambique Capitais, a minority shareholder (around 3%), but which at the time was the majority shareholder and founder of the bank.
Kuhanha, the management company of the BM workers’ pension fund (currently more than 60% of the share capital), assumed leadership of Moza Banco in 2016, following the central bank’s intervention, when the Portuguese Novo Banco served as one of its main shareholders (49%), successor to Banco Espírito Santo.
The Administrative Court ruling recalls that at the time of the intervention, Moçambique Capitais held a 51% stake in Moza Banco, worth 1,085,875,000 meticais (€15.5 million at the current exchange rate). However, the company reduced this stake to 217,175,000 meticais (€3.1 million) due to “a reduction in share capital immediately followed by an increase in share capital, with a consequent devaluation of the share value from 25,000 meticais to 5,000 meticais (€358 to €71.50)”.
The Administrative Court's decision annuls “material administrative acts”, such as “the intervention and adoption of the extraordinary restructuring measure of Moza Banco” and the appointment of a board of directors.
PVJ/ADB // ADB.
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