LAM Mozambique Grapples with Over $3 Million Embezzlement Scandal

By Ivan PetrenkoFeb 15, 2024 03:25 AMNews
Share:
Relaxing afternoon at Maputo, Mozambique
Relaxing afternoon at Maputo, Mozambique. Source: unsplash

Linhas Aéreas de Moçambique (LAM), the national airline, is currently embroiled in a scandal involving the theft of over $3 million through its flight ticket points of sale. The revelation came to light during a press conference held by the airline's restructuring project manager, Sérgio Matos, in Maputo on February 12, marking a significant setback for the carrier amidst ongoing restructuring efforts aimed at reviving its fortunes.

The Embezzlement Scheme Unveiled

The airline initiated an internal investigation nearly two weeks ago upon discovering discrepancies between the revenue received and the number of tickets sold. This inquiry led to the shocking discovery that approximately two to three million dollars had been lost in the last three months due to embezzlement practices at various ticket sales points. The situation reached a nadir in December, with the airline recording a deficit of $3.2 million.

In response, LAM commenced the collection of all Point of Sale (POS) systems from its 20 ticket sales outlets, uncovering that some store heads were unaware of the origins of several machines. This step is part of a broader strategy to trace the missing funds and address the vulnerabilities within the airline's sales infrastructure.

Restructuring Amidst Financial Turbulence

The scandal emerges at a time when LAM is undergoing a significant restructuring process, managed by the South African consultancy firm Fly Modern Ark (FMA), to curb years of losses and operational inefficiencies. The efforts have borne fruit, with the airline reducing its debt by over $60 million and resuming its long-haul flights to Portugal. However, this incident highlights the challenges that lie ahead in achieving operational stability and financial integrity.

Additional Irregularities

The internal probe has also unearthed other irregularities, including anomalies in cash collection and fuel supply procurement. Notably, there were instances where cash deposits from sales were delayed by up to three days, raising concerns about the handling and storage of collected funds. Furthermore, discrepancies in fuel purchases were identified, with reports of aircraft being fueled beyond their capacity, prompting questions about the whereabouts of the excess fuel.

Impact on Operations

The fuel procurement issue has had tangible repercussions on LAM's operations, as evidenced by the delay of five international and domestic flights due to fuel shortages. Despite outstanding debts to local petroleum companies, which have contributed to the supply challenges, Matos clarified that the recent disruptions were a result of supply issues rather than payment failures. The airline has acknowledged a significant debt to Petromoc and has initiated repayment efforts.

As LAM Mozambique navigates through this tumultuous period, the focus remains on tightening operational controls, enhancing transparency, and rebuilding trust with passengers and stakeholders. The ongoing investigations and restructuring efforts are critical to the airline's recovery and its ambition to sustainably serve as Mozambique's flagship carrier.

Top Articles
Smartphone with eSIM logo surrounded by travel essentials like flowers, map, camera, and sunglasses

Where to Buy eSIM at the Best Price: A Full Review of Tariffs and Options

Aug 8, 2025 10:54 AM
Person in tropical shirt looking at a docked cruise ship

Internet on a Cruise: How to Avoid Huge Bills for Connectivity

Aug 6, 2025 09:14 AM

No More SIM Swaps: The eSIM Travel Solution You’ll Actually Use

Aug 4, 2025 16:51 PM

Not Just a Suitcase: My Personal Checklist for Smart Travelers in 2025

Mar 3, 2025 18:00 PM
More News
Tokyo Disneyland entrance decorated for holiday season

Tokyo Disneyland to Introduce New Holiday Parade This Winter

Sep 13, 2025 20:29 PM
Icelandair aircraft approaching runway

Icelandair Introduces Year-Round Flights Between Edinburgh and Reykjavik

Sep 13, 2025 19:33 PM

Reduced SAS Fares Support Travel Amid Storm Disruptions in Northern Sweden

Sep 13, 2025 18:44 PM

Temporary Train Changes in Sicily Could Impact Tourist Plans

Sep 13, 2025 01:27 AM
AirAsia airplane wing and logo above the clouds

New Direct Air Connections Open Between Malaysia and Pontianak

Sep 13, 2025 00:31 AM
Woman checking phone for updates

KLM Updates Newsletters with AI to Deliver Travel Insights

Sep 12, 2025 20:48 PM
Red railway crossing signal with barriers lowered under cloudy sky

September Rail Work on North Downs Line May Impact Trips

Sep 12, 2025 19:22 PM
SAS aircraft preparing to land

SAS Opens First Non-Stop Route Between Copenhagen and Seoul

Sep 12, 2025 18:35 PM
People enjoying food festival outdoors

Abergavenny Prepares for Food Festival with New Transport Arrangements

Sep 12, 2025 16:49 PM

Ryanair Confirms Partnership with Skyscanner

Sep 12, 2025 15:23 PM

New Platform Lets Passengers Book Rental Cars Directly at Berlin Airport

Sep 12, 2025 05:36 AM
Hotel glowing with festive lights

Organized Holiday Packages Introduced for Winter Visitors in the Lake District

Sep 11, 2025 22:43 PM
Modern bedroom with decorative pillows and lamps

Napa Valley Expands Stays Ahead of 2028 Opening

Sep 11, 2025 21:26 PM
Person using smartphone, highlighting online security risks

Travelers Face Rising Threat from Fake Airline Sites

Sep 11, 2025 20:39 PM
Construction work on Stockport bridge over railway tracks

Stockport Bridge Works to Affect Key Travel Routes This Autumn

Sep 11, 2025 19:42 PM

Wizz Air to Wind Down Vienna Base

Sep 11, 2025 19:25 PM

Skyhub PAD Reopens Key Connection from Paderborn

Sep 11, 2025 00:38 AM
Transavia aircraft on runway preparing for departure

Transavia Expands Summer 2026 Routes, Opening More Mediterranean Destinations

Sep 10, 2025 22:26 PM
Passenger waiting as LNER train passes

Travelers’ Details Exposed in LNER Supplier Hack

Sep 10, 2025 21:49 PM
Rail workers performing maintenance on train tracks during infrastructure upgrades

Major Rail Works on Caserta to Foggia Line Could Affect Travel Plans

Sep 10, 2025 21:33 PM
flydubai aircraft taxiing on runway with mountains in the background

flydubai and TAROM Connect More European Destinations

Sep 10, 2025 20:24 PM
Wizz Air aircraft on runway at Tirana Airport

Wizz Air Expands Network from Tirana with New Routes

Sep 10, 2025 19:47 PM

Travel Planning for the 2026 FIFA World Cup Made Easier

Sep 10, 2025 18:51 PM

Rail Maintenance to Affect Passengers Along Key Northern Italy Route

Sep 9, 2025 21:27 PM
Modern tropical hotel room with a large bed, woven chair, and a view of lush greenery through floor-to-ceiling glass doors

Panglao Island Expands Options for Visitors to Explore Beaches and Wildlife

Sep 9, 2025 20:41 PM
Person using smartphone indoors

Hidden Costs in Online Travel Platforms Affect European Passengers

Sep 9, 2025 19:34 PM