Mozambique: New e-auction platform strengthens transparency in asset recovery

Mozambique launched its first electronic auction (e-auction) of assets forfeited to the State on Friday, putting 14 vehicles up for bidding in an initiative aimed at strengthening transparency and efficiency in the recovery of assets associated with criminal activity.

“Today we are taking a step towards building a modern, accessible asset management model aligned with international best practices,” Finance Minister Carla Loveira said during a seminar in Maputo marking the launch of the new e-auction platform of the Asset Management Office (Gabinete de Gestão de Activos, GGA).

According to Minister Loveira, the new e-auction platform represents “more than the introduction of a new technological tool”, marking the Government’s commitment to transparency, integrity and efficiency in the administration of public resources.

The mechanism, the Minister of Finance added, will make auctions more widely publicised, facilitate access for citizens and companies, and promote greater competition among potential buyers of assets made available to the public.

“With this tool, a citizen or a company located anywhere in the country will be able to participate in auction procedures, subject to the applicable requirements, without the need to travel in person,” she said.

Minister Loveira also stressed that corruption, money laundering and organised crime continue to pose challenges to the country’s economic and social development, emphasising that efforts to combat these phenomena must include the seizure, recovery and proper management of assets derived from illicit activities.

“It is essential to send an unequivocal message: crime must not pay, and the economic benefits derived from criminal activity cannot continue to serve those who break the law,” she said.

The minister also highlighted legislative progress made in recent years, particularly the recent approval of the law establishing the regime for extended confiscation of assets and the mechanisms for asset recovery and management, as well as the decree regulating the administration of seized assets.

The electronic auction is part of a set of digital platforms developed to strengthen the management of assets recovered by the State, including an asset management module, a business intelligence tool and a public monitoring portal, the minister explained.

Speaking to journalists, Carla Loveira said the first electronic auction involves 14 seized vehicles, put up for bidding at starting prices equivalent to 70% of their appraised value. “The minimum bid is 30% below the appraised value of the asset,” she said.

The Minister of Finance also noted that the proceeds will go to the State Budget and the mechanisms provided for under asset management legislation, with the recovered resources intended for public purposes.

Loveira also explained that the authorities had opted not to disclose the specific criminal origins of the assets being auctioned, stressing that the assets remain duly registered and catalogued in order to safeguard any judicial decisions favourable to the defendants.

During the seminar, the representative of the United Nations Office on Drugs and Crime (UNODC) in Mozambique, António de Vivo, described the launch of the platform as an “institutional milestone” demonstrating the results of technical cooperation with Mozambican authorities since 2021.

“Look how far you have come!” he exclaimed, using a popular expression to describe the progress made by the Asset Management Office since its establishment in December 2020.

According to the Head of the UNODC Office in Mozambique, strengthening the Asset Management Office has made it possible to establish mechanisms for the professional administration of assets seized from criminal activity, turning them into benefits for the State and its citizens.