LAM - Linhas Aéreas de Moçambique (TM, Maputo) is under investigation in five separate criminal proceedings over suspected mismanagement, corruption, and other irregularities, according to the country's government-led anti-corruption authority.
Addressing a news conference in Maputo on February 24, Romualdo Johnam, spokesman for the Central Office for Combating Corruption (Gabinete Central de Combate à Corrupção - GCCC), said the cases are at different stages and are intended to determine whether criminal offences were committed and whether public funds were abused.
"There is evidence of practices that may constitute crimes of mismanagement, corruption, embezzlement, and abuse of office or functions, without prejudice to other offences that may emerge during the course of the investigation," he was cited as saying by the national news agency, Agência de Informação de Moçambique (AIM).
One investigation centres on alleged irregularities in the sale and acquisition of aircraft, contracting for staff uniforms, catering, and fuel, plus other payments lacking adequate contractual justification.
Another probe is examining the legality of a Memorandum of Understanding (MoU) signed between South African aviation consultancy Fly Modern Ark (FMA) and the Institute for the Management of State Holdings (Instituto de Gestão das Participações do Estado - IGEPE) as part of the airline’s restructuring process. FMA was appointed in April 2023 to work with LAM's management on restructuring the airline and preparing it for a potential strategic equity partnership.
The authorities are also investigating the FMA-arranged lease of a B737-300(F), C9-BAX (msn 28567), from ACN AeroLeasing. The freighter never operated because the airline failed to certify it in Mozambique, resulting in financial losses. The converted freighter had arrived in Mozambique under a deal done by FMA without the necessary documentation for certification by the Mozambican civil aviation authority (Instituto de Aviação Civil de Moçambique - IACM).
Additional cases involve the alleged misappropriation of funds from ticket payments and payments by company employees for translation services that were either not provided or billed at inflated prices.
Johnam said that some cases already have formally named defendants, while others remain under investigation without identified suspects. The authorities are gathering documentary, expert and testimonial evidence in coordination with other justice and state oversight bodies.
Johnam said that the investigations are intended to ensure individual accountability and safeguard public assets while protecting the sustainability of the national carrier.
LAM continues to undergo restructuring aimed at financial and operational recovery.
IMF warning
Meanwhile, the International Monetary Fund (IMF) has warned that planned investments in LAM by its three profitable state-owned entity shareholders risk diverting resources from critical infrastructure needs.
"Transactions between the government and SOEs (e.g., transfers, dividends) should flow through the budget. A transparent strategy to improve LAM’s efficiency and ensure investments are based on rigorous cost-benefit analysis is essential. SOEs with persistent negative performance should be restructured, and state guarantees to SOEs should only be extended with stricter criteria and oversight," the IMF advises in its February 2026 country report on Mozambique.
In November, Mozambique’s transport minister said the three state-owned companies would inject USD130 million to recapitalise LAM and restore the fleet as part of its ongoing restructuring. This followed the transfer of 91% of the airline’s share capital to the hydro-electrical scheme company (Hidroeléctrica de Cahora Bassa- HCB), national rail company (Caminhos de Ferro de Moçambique - CFM), and national insurer (Empresa Moçambicana de Seguros - EMOSE).
