Five former senior managers of LAM - Linhas Aéreas de Moçambique (TM, Maputo) were arrested on February 26 in an operation conducted by the Central Office for Combating Corruption (Gabinete Central de Combate à Corrupção - GCCC), according to multiple local media reports.

Those detained include João Carlos Pó Jorge, a former LAM general director; Hilário Tembe, a former operations chief; Armindo Savanguane, former financial director; and Eugénio Mulungo, former head of treasury, the newspaper O País reported from Maputo. The detention of Anísio Machava, a LAM procurement technician, was reported by Evidências, an investigative online newspaper.

The arrests came 48 hours after the GCCC disclosed it was conducting five separate criminal investigations at the state-owned airline.

"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," GCCC spokesman Romualdo Johnam told a news briefing on February 24.

In a statement late on February 26, LAM said it was closely monitoring the progress of the GCCC's investigations and was cooperating with the relevant authorities.

"The investigation concerns previous periods. The current restructuring phase is proceeding normally, in accordance with the adopted plans and deadlines. The company remains stable and operating regularly, ensuring the continuity of its services with regularity, safety, and commitment to its passengers and partners," the airline stated.

Multiple investigations

The former LAM executives were summoned to testify before the GCCC in July 2024, in connection with an investigation into alleged irregularities in dealings between the airline and seven other service providers.

Pó Jorge had been COO and advisor to the CFO at LAM since 2014 before taking the helm as general director in 2018 until his departure in February/March 2024. During the period, he was elected chairman of the African Airlines Association (AFRAA) and of the Airline Association of Southern Africa (AASA), and was a Chambre de Commerce France Mozambique board member.

His departure followed the government's appointment in 2023 of South African brokerage Fly Modern Ark (FMA) to oversee the restructuring of LAM in consultation with its existing management team - an arrangement that proved to be challenging.

Following its appointment, FMA made allegations of EUR3 million euros (USD3.5 million) worth of embezzlement in ticket sales through automatic payment terminals that did not belong to the airline. The case was registered with the investigating body as No. 21/P/GCCC/2024 and followed a previous investigation into fleet mismanagement, case No. 06/11/P/GCCC/2023.

The legality of Fly Modern Ark's appointment is also being investigated by the GCCC. Other probes involve the FMA-arranged lease of a B737-300(F) that never operated because the airline failed to certify it in Mozambique, resulting in financial losses. The GCCC is also investigating payments by company employees for translation services that were either not provided or billed at inflated prices.