The National Assembly of Cape Verde approved the extension for 90 days of the work of the Parliamentary Commission of Inquiry (CPI) on the process of privatization of Air Transport of Cape Verde (TACV), according to a resolution that entered into force this Thursday.
In the draft resolution discussed in parliament at the second parliamentary session in July, which ended last Friday, it was alleged that the term granted to the CPI (180 days) turned out to be “insufficient”therefore requesting an extension of the initial period for another 90 days from September 7.
The resolution that approved the extension of this investigation commission was published this Wednesday, to enter into force the following day, according to the Official Gazette consulted by Lusa.
This CPI was requested in February of this year by the African Party for the Independence of Cape Verde (PAICV, opposition since 2016), which, however, accused the Government of not providing the necessary documents for the work of the commissionwhich led to several exchanges of accusations in parliament with the deputies of the Movement for Democracy (MpD, in power).
Since he took office, the deputies of this CPI have already listened to several former administrators of the TACV, as well as the current president of the board of directors, Sara Pires.
The privatization of the Cape Verdean airline reduces budgetary and fiscal risk
During this period, at the same time, the the company was temporarily unable to fly to Europefor not having renewed a certificate, and saw the Government announce an out-of-court settlement with the Icelanders from Icelandair, who led TACV between March 2019 and July 2021, due to the process that led to their renationalization.
During the validity of this IPC, TACV reached an agreement with the Angolan TAAG for the rental of a Boeing 737-700, with which it already flies to Portugal and saw, in July, the International Monetary Fund (IMF) estimate that the company It will need 30 million euros from the State by 2023.
According to information provided last February by the president of the National Assembly, Austelino Correia, this CPI was able to move forward after the Attorney General’s Office confirmed that its object “does not collide” with possible investigated matters.
In accordance with the content of the resolution that constituted it -of mandatory content-, this CPI also aims to analyze the settlement of the TACV operation on domestic flights, which since November 2016 is insured only by a single private airline.
In March 2019, the State of Cape Verde sold 51% of TACV for €1.3 million to Lofleidir Cape Verde, a company 70% owned by Loftleidir Icelandic EHF (Islandair group, which owned 36% of Cape Verde). Verde Airlines — trade name of the company) and 30% by Icelandic entrepreneurs with experience in the aviation sector (who took over the remaining 15% of the 51% privatized).
However, after the stoppage of the company during the Covid-19 pandemic, the State of Cape Verde assumed the 51% position in TACV on July 6, 2021, alleging various failures in management, and immediately dissolved the social bodies.
On November 26, Loftleidir Cabo Verde announced that it had initiated an arbitration process against the Cape Verdean State, alleging “violation of the agreements signed between the parties”, with a view to the renationalization of the flag carrier TACV.
Among various arguments, the PAICV deputies who signed the creation of this CPI pointed out “indications” that the Icelandic private group “unduly took advantage of resources from the State of Cape Verde”, and described this privatization as a “business from León”.
In fact, the State/Government, despite not having received a single cent for the privatization of TACV/CVA, assigns at least four guarantees to CVA, estimated at more than seven million euros, an indirect injection of public capital that has never stabilized the company financially”, it reads.
Among several questions raised in the application, the PAICV wants to know with this CPI, which will have 180 days of functions after taking office, “what was the cost generated by the renationalization of the TACV”, last July, after the impact of the pandemic on air connections, and asks for various documents and reports.
There are indications that the Government acted against the defense of national public interests”, indicates the initial request, presented by the deputies of the PAICV.
TACV suspended commercial flights in March 2020, due to flight restrictions to contain the Covid-19 pandemic, and only resumed operation, now in the hands of the Cape Verdean State, last December, after 21 months, with connections between Praia and Lisbon, it was already extended this year from the Portuguese capital to the islands of Sal and São Vicente.
The Prime Minister, Ulisses Correia e Silva, announced that the company will have one more plane in service, to reinforce international flights, although without advancing dates.
Source: Observadora
