For the Center for Public Integrity, the Mozambique Telecom (Tmcel), as a company with category five risk, presents a very high tax risk, since it presents a great possibility of not honoring its financial obligations with creditors.
"Tmcel is a technically insolvent company, with all financial indicators showing high vulnerability (Category 5) with a tendency to worsen. The 50% test shows that the company's costs, including financial costs, are twice as high as its operating revenues generated by the business".
On the other hand, the Z-Core analysis reveals that the company is in a situation of insolvency, with a “D” rating.
BUT: [Mozambique] Tmcel launches IP-based television service
It should be noted that very recently Tmcel continues to be a burden for the Mozambican Government, according to the assessment of Fiscal Risks of the State Business Sector (SEE) carried out by the Center for Public Integrity (CIP), which analyzed the 2021 financial year, showing that the company ended the year technically bankrupt, since it represents a very high tax risk.
Based on the Excel tool SOE Health Check Too (SOE HCT), by the way, the same one developed by the International Monetary Fund and the World Bank to help economies identify and monitor the weaknesses of state companies, the Center for Public Integrity made a tax risk assessment of SEE companies.
