– UFUDO Limitada won the tender, for more than two million dollars, 11 days before it was registered at the Legal Bodies Registry Office
– The electronic system for collecting the fees at REVIMO’s tollgates is vulnerable to manipulation, and it is estimated that about 30% of the value of the annual revenue is stolen
By Sheila Nhancale, Noémia Mendes, Canel Cassimo Junior and Jaime Mulhovo
Maputo (MOZTIMES) – The Roads Fund paid more than 123 million meticais (approximately two million US dollars) in hiring the services to supply and instal a system for electronic collection of tollgate fees from a company that had not yet been constituted when it was hired.
The case dates to 2020 and remained hidden for about five years. A MOZTIMES investigation uncovers this business with strong suspicions of corruption.
The company hired to supply and install the system for electronic collection of tolls, UFUDO Lda, was chosen through a public tender in which it was the only bidder.
When it was set up, in August 2020, UFUDO Lda had share capital of 100,000 meticais divided equally between two partner-companies, Ufudo Holdings Pty (50%), represented by a South African citizen named Solomon Themba Mosai, and Neza Consulting Edge, Limitada (50%), represented by a Mozambican citizen named Adolfo Armando Zunguze. In June 2023, Ufudo increased its share capital to one million meticais and four new shareholders joined. The company came to have the following shareholding structure: Artur Henrique Carlos (13%); Tânia Amélia Simeão (15%); Furaha Babalwa Tungande (13.5%); Ndwandwe Development, Limitada (13.5%); Ufudo Holdings Pty (22.25%) and Neza Consulting Edge, Limitada (22.5%)[1].
The jury set up to assess the bids submitted to the Roads Fund concluded that UFUDO, Lda was the only bidder qualified to undertake the object of the tender.
“Only one bidder, UFUDO submitted bids for units I and II and it has shown that it possesses the technical skills and the financial capacity to execute the object of the tender. This being the case, it was classified…”, state the minutes announcing the position of the Public Tender nº 47A001952/CP/09/2020, consulted during the research.
However, on 23 July 2020, when the jury decided to award the tender to UFUDO, Lda., this company had not yet been legally constituted.
According to the official certificate issued by the Legal Bodies’ Registry Office, which is responsible for registering companies in Mozambique, UFUDO, Lda. was constituted on 3 August 2020, which was 11 days after the award of the tender.
The social object of UFUDO, Lda. is exactly what was requested in the tender: the installation of electronic toll collection systems; the provision of services to maintain the software equipment of the toll collection systems; among other related activities.
At the time when the tender was awarded to UFUDO, Lda., public contracting was governed by Decree No. 5/2016, of 8 March, which laid down the Regulations for Hiring Public Works Contractors, the Supply of Goods and the Provision of Services to the State. The regulations envisaged that only individual or collective persons, Mozambican or foreign, with proven legal, economic-financial and technical qualifications could submit bids[2].
UFUDO, Limitada did not meet these requirements. For the legal requirements, the Law demanded the presentation of a Commercial Registration Certificate[3] but, as we have seen, UFUDO, Limitada was only set up on 3 August 2020. This means that it did not have a valid commercial certificate to present, which was enough to disqualify the company as a bidder .
As for the technical criteria, the law obliged any competing company to possess a permit or equivalent document[4], which UFUDO also did not have. Furthermore, because it was not legally constituted, UFUDO, Limitada did not meet economic and financial requirements, such as the regular declarations of income and fiscal accounting information[5].
Even so, the jury, formed by staff from the Roads Fund, decided to award the tender worth about two million dollars, to UFUDO, Limitada. And on 13 August 2020, the announcement awarding the tender for the Supply and Installation of the tollgate electronic tolls collection system, units I and II, to the company UFUDO, Limitada, was formally published in the newspaper Notícias, to the total sum of 123.528.299,06 (one hundred and twenty three million, five hunded and twenty eight thousand, two hundred and ninety nine meticais,and six centavos) divided into two contracts.
The first contract bears the number nº 47A001952/CP/20/20, unit I, to the value of 65.910.004, 06 (sixty five million, nine hundred and ten thousand, and four meticais and 6 centavos). The second contract bears the number nº 47A001952/CP/20/20, unit II, to the value of 57.618.294,64 (fifty seven million, six hunded and eighteen thousand, and two hundred and ninety four meticais and sixty four centavos).
The lack of competition and the choice of a company which legally did not exist at the time of the award shows irregularities which strengthen suspicions of fraud and corruption.
The Organic Law of the Public Prosecutor’s Office orders that all public contracting processes valued at more than 600 times the minimum wage must be submitted to the Public Prosecutor for prior assessment of their legality, before the contract can take effect. The contracting body, in this case the Roads Fund, is responsible for submitting public contracting processes to the prior assessment of the Public Prosecutor’s Office.
The investigation undertaken by MOZTIMES showed that the Roads Fund did not submit the contracting of UFUDO for prior inspection of its legality. The management of the Roads Fund has still not replied to the letter from MOZTIMES sent on 30 October 2024, requesting an expanation about this and other questions concerning the hiring of UFUDO.
Fig. 1. Chronology of the award and implementation of the tollgate collection system in Mozambique
Source: compiled by the author
Installation of tollgates used for corruption of the elites?
The installation of tollgates in Mozambique was strongly opposed by citizens and by civil society organisations (CSOs) which monitor governance. The CSOs agued that the tollgates are illegal and have benefitted political elites, raising concerns about transparency in the management of the revenue collected.
The opposition to the tollgates gained more strength during the demonstrations that followed the general elections of October 2024, when citizens denounced the high cost of the tolls and the lack of visible benefits, such as improved conditions on the roads with tollgates. In this period, rioters attacked and destroyed tollgates throughout the country.
Earlier, in July 2020, civil society organisations fought against the installation of tollgates on the roads operated by the company Revimo (Mozambican Road Network). Using advocacy campaigns and litigation in the courts, the CSOs tried to prevent motorists beng charged tolls to circulate on Mozambican roads.
The Centre for Democracy and Human Rights (CDD) managed to obtain an injunction to prevent the start of collecting the tolls at least in Maputo city. But this was only for a short period.
In court, the Government argued that the installation of tollgates was important for motorists to contribute to the maintenance of the roads they use. This explanation is based on the principle of “user pays”, according to which those who use a particular public service requiring major State investments should contribute directly to the cost of these services.
The Government won the judicial battle against civil society and went ahead to install tollgates throughout the country.
While civil society was questioning the legality of the tollgates and criticised the concession model adopted, the Roads Fund argued that the tolls are essential for maintaining and building roads, thus justifying the concession of managing roads to Revimo.
REVIMO was set up with the purpose of administering the tollgates and received concessions from the Government through Decrees No. 93/2019, of 17 December, and No. 46/2021, of 15 June. These concessions cover important roads, such as the N6 (Beira-Machipanda), the Maputo Ring Road, the Maputo-KaTembe bridge and its connecting roads, as well as roads R453 (Macia-Bilene Beach), N101 (Macia-Chókwè) and R448 (Chókwè-Macarretane) in Gaza province.
In an interview with the pro-government paper “Notícias”, on 28 June 2021, Ângelo Macuácua, the Chairperson of the Board of Directors of the Roads Fund, said “the size of our economy does not generate enough resources for the construction and maintenance of roads”. This meant that the road tolls do not seek to recoup the investment made in building the road, since they would then be much higher. He said that the tolls applied are merely to support maintenance of the roads.
However, the public perception is that the resources obtained through collecting the tolls do not result in concrete improvements in the road infrastructure, and this could have been reflected in the destruction of dozens of tollgates throughout the country, during the post-election unrest, seeking to prevent the collection of the tolls.
Electronic toll collection system vulnerable to manipulation to divert income
The MOZTIMES investigation on the ground identified several vulnerabilities which compromise the effectiveness and transparency of the toll collection system managed by REVIMO. The investigation was held on the main toll roads managed by REVIMO, namely National Highway No. 6 (N6), which connects Beira to Machipanda, the Maputo Ring Road, the Maputo-KaTembe Bridge, the provincial roads R453 (Macia-Bilene Beach), N101 (Macia-Chókwè) and R448 (Chókwè-Macarretane), in Gaza province.
In all the tollgates visited, recurrent failings were detected in the electronic collection system. In general, the collection system regularly goes down and the users pay without receiving receipts. At many tollgates payment in cash is prioritised instead of the use of pre-paid cards and of the e-tag system, which have been increasingly used globally to facilitate the flow of road traffic and prevent theft.
For example, at the tollgates along National Highway No.1, which are not farmed out to REVIMO, the tolls are paid through bank card, guaranteeing that the money collected goes directly into the account of the Roads Fund. But at all the tollgates run by REVIMO bank cards are not accepted as a method for paying the tolls.
Furthermore, the precarious conditions of some roads, especially in Gaza province, such as R453 and R101, reflect the disparity between the sum charged at the tollgates and the quality of the roads. At several tollgates, motorists expressed their frustration in comparing the sums paid with the condition of the roads which require urgent maintenance.
Photo: Road R453 (Macia-Praia do Bilene). Photo by Jaime Mulhovo
Another critical point identified was the lack of inspection at the tollgates, which creates room for fraudulent practices and corruption. Motorists reported that, on several occasions, they were approached by staff demanding payment of sums lower than those indicated in the official tables in exchange for not receiving proof of payment. This means that the sums charged are not channeled to the company’s coffers.
Transparency about the destination of the resources was another concern presented. Many motorists do not know how the money paid in the tolls is used. This feeds a feeling of distrust about how the system is managed. The lack of clarity and of communication with the public about the benefits of the tollgate system strengthens the feeling among motorists that that the collection of tolls is unjustified. Users interviewed complain that there are no practical benefits from the payment of the tolls and they cite matters such as improvement in the quality of the roads, in terms of paving and lighting, assistance to vehicles that have broken down, and to victims of traffic accidents on the toll roads.
The Commercial Director of REVIMO, Sérgio Nhancale, stated in a phone interview that the toll fee collection system used by the company has experienced some failures but considers them common in any similar system.
He confirmed that some employees were dismissed for revenue diversion but assured that this is not related to the system’s failures. On the contrary, he argued that the collection system itself allows for the detection of irregularities, leading to the dismissal of the employees involved.
Regarding the financial losses resulting from the system failures, Nhancale said it is difficult to quantify them but assured that REVIMO’s collection system is reliable and audited by the Tax Authority.
National Highway No. Six (EN6)
The toll collection system on EN6, which connects the city of Beira, in Sofala, to Machipanda district, in Manica, shows recurrent failings at the three tollgates installed along the road, compromising transparency and effectiveness in collecting the tolls.
The failings in the collection system prevent the electronic registration of payments, forcing motorists to pay in cash, without any receipts.
When the system is failing, collection is made directly in the booth, without any computerised control, which could facilitate theft of the money received. According to information obtained from REVIMO workers in Nhamatanda and Manica, these failings happen two to three times a week and can last for between three to four hours a day. In this period, the vehicles drive through without registration, and the payments are made in cash.
These failings in the collection system directly affect the motorists who pay in cash, because during the blackouts they do not receive receipts, and the amount paid manually is not registered immediately in the system. Tollgate users who use pre-paid cards are not affected by the failings in the collection system, because their payments are not discounted during the blackouts.
After the re-establishment of the system, an agent of the treasury collects the the amounts paid to send them to the REVIMO accounts – but the staff say they do not know how the money is dealt with outside of the electronic system, which leads to distrust that the money might be being diverted.
In addition to the failings in the system, a further problem identified was the high cost of the tolls in the various localities along EN6. The sums charged are described in Table 1.
Table 1. Tolls charged at the tollgates on EN6
| Class of vehicle | Dondo | Nhamatanda | Chimoio |
| 1 | 40.00 MT | 120.00 MT | 180.00 MT |
| 2 | 100.00 MT | 290.00 MT | 450.00 MT |
| 3 | 200.00 MT | 590.00 MT | 890.00 MT |
| 4 | 300.00 MT | 880.00 MT | 1,100.00 MT |
Source: Data collected on the ground
Alongside the daily fees, there are monthly fees for residents, including urban passenger transport vehicles (classes 1 and 2), which vary between 300 and 500 meticais. Many motorists suggest that, to simplify and reduce costs, there should be a single fee for anyone using the three tollgates on the same day, with payment made at a single collection point.
As for the use of pre-paid cards, the system has been promoted as a solution to speed up the procedure and reduce the waiting time at the tollgates. However, membership of the scheme is reserved for companies and transport operators who must comply with a series of requirements, such as the payment of a membership fee of 200 meticais per card and presentation of the vehicle’s documents.
It was also found that at least 20 REVIMO workers were sacked, between 2021 and 2024 because they were involved in schemes to divert revenue during the failures of the electronic system. Some of the workers expelled were found at the cashier’s booths, during internal investigations, with unregistered sums. To discourage theft the company has adopted a policy of rewarding the workers who are not involved in these schemes, and who hand over in full the money collected manually.
Gaza Province
The investigation into the roads with tollgates managed by REVIMO in Gaza province, namely the tollgates at Macarretane and Lionde, both in Chókwé district, and the Zimbene and Nwamakevele tollgates, located in Bilene district, found that the majority of the users pay the tolls in cash. No payment made by bank card or by any other electronic means, such as the REVIMO pre-paid card, was identified.
The main irregularity noted was the recurrent charging of fees that do not correspond to the class of vehicles. This is a scheme coordinated between REVIMO workers and the motorists using the tollgates.
The collectors of the tolls connive with the users so that the latter pay less than the amount owing, and no receipt is issued. For example, a light vehicle that should pay 50.00 meticais may pay only 30.00 meticais on condition that no receipt is issued. A truck which should pay 500.00 meticais may pay only 300.00 without the issuing of a receipt. The user keeps part of the sum, the REVIMO worker keeps the other part, to the detriment of the tollgate income.
This scheme happens at almost all the tollgates, particularly at night, in the Zimbene, Lionde and Macarretane tollgates in Chókwé district. These tollgates are located along the road that is frequently used by truck drivers carrying charcoal and cattle, coming from the districts in the north of Gaza (Chicualacuala, Mabalane, Mapai, Massagena and Chigubo).
At night, sometimes the REVIMO workers switch off the surveillance cameras, thus preventing he registration of passing vehicles ad facilitating theft.
This corrupt scheme is possible due to the lack of adequate inspection.
Managers of the tollgates refused to provide any type of information, and claimed they were not authorised to speak about the matter. Délcio Elias, head of the REVIMO tollgate management department at central level was contacted to explain the situation. But he too refused to grant an interview, alleging that he was too busy.
Maputo tollgates
In the tollgates operated by REVIMO in Maputo (KaTembe, Cumbeza, Costa do Sol and Zintava) the failure to issue automatic receipts was also noted.
At these tollgates, REVIMO has two payment methods for users – cash and a frequent user card. However, the users suggest that a more flexible payment method should be created.
“We should have a simple system, whereby, when a vehicle already personalised arrives, the barrier raises automatically to avoid congestion at the moment of paying the tolls”, said one user of the Costa do Sol tollgate, Eduardo Chicalangane.
The users of the REVIMO tollgates also report difficulties when they try to pay by using the pre-paid card.
“Often the system does not accept the card. This makes us pay cash in order not to waste time, even when there is money on the card”, reports one user of the Katembe tollgate, a transport operator who preferred to remain anonymous.
The investigation found that the KaTembe tollgate has another problem: the failure to issue receipts automatically. Motorists who pay the toll at Katembe often do not receive proof of payment even if they explicitly ask for it. Without the issuing of a receipt, the value of the revenue can be easily manipulated.
Felisberto Mandlate, a passenger transport operator, explains that when receipts are requested, they are informed that they are not relevant “I don’t receive the receipts. We even tried to demand them, but they tell us to drive through without taking them, because there’s no problem”, he said.
Francisco Matsinhe, another motorist, explained that several times he has been charged less than the amount that should be demanded at the Cumbeza tollgate. “I was charged 10 meticais at the gate, rather than the 40 meticais required from the class of my vehicle”, he told us. This means that the 10 meticais that Francisco paid were not channelled to the coffers of REVIMO.
Cost of the diversion of revenue in REVIMO
REVIMO declared an income of 2.4 billion meticais in 2023, resulting from the traffic of 19,525,430 vehicles that passed through its tollgates. Estimates, according to the data gathered during the investigation, indicate that between 20% and 30% of the vehicles that pass through the tollgates operated by REVIMO use schemes to pay sums which are not registered, as described above. The tollgates on the roads in Gaza, Sofala and Manica are most vulnerable to these schemes.
This means that about 25% to 30% of the value of the income that REVIMO should receive is diverted through the schemes mentioned above. This includes the sabotage of the electronic collection system and the charging of sums lower than those stipulated in the tables, without the issuing of receipts. Hence, it is estimated that about 702.3 million meticais, equivalent to 30% of the value of the income declared by REVIMO in 2023, did not enter the company’s coffers. If this sum had been charged and registered, the income in 2023 would have reached about three billion meticais.
The Roads Fund, UFUDO and Limitada did not answer requests from MOZTIMES about the matters raised here. (SN/NM/CJ/JM)
*Investigation financed by the Centre for Public Integrity (CIP) under the Programme to Fight against Corruption in Justice.
[1] Cf. BR BR nº 135, 3rd Series of 14 July 2023 – p. 4336
[2] Cf. Art. 21 of Decree No. 5/2016, of 8 March
[3] Cf. Article 23, line c) of Decree No 5/2016, of 8 March
[4] Cf. Article 24, line g) of Decree No nº 5/2016, of 8 March
[5] Cf. Article 24, paragraph 1 of Decree No. 5/2016, of 8 March
