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The Blue Lagoon and Coconut Palms
The Blue Lagoon and Coconut Palms
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Corruption: (On 13 September 2006 the Governor of Gaza Province announced on public radio that there would henceforth be no more land sales by any Moçambican to any foreigner. Don't do any land deals without first consulting the Governor's office, you will lose your money.) As a legitimate tourist on a 30 day entry stamp with no contraband to hide, driving a legal and insured vehicle, obeying the law, you will see no corruption and the thought of bribing somebody will not enter your head, nor should it. At worst a speed cop might pull you over and try to sell your driving license back to you. But you know now not to lose control of any document. Right? However, if you have had such a wonderful holiday that you have fallen in love with the country and want to acquire a piece of it, the picture will change dramatically. It is a mathematical certainty that you will be cheated by a lot of people (mostly South Africans), and out of a huge amount of money (mostly in South Africa). As an example, there is a South African gentleman nearby who obtained and partial and temporary title to a parcel of land fronting on the lagoon. He then proceeded to divide this land into 41 pieces (some too small to build a house upon) and sell these plots to his countrymen for a total (he boasts) of R20+ million, all of which is on deposit in South Africa. There are many hundreds of people who have been defrauded in land deals in Moçambique. A few tips for those who wish to persist: Do download the Land Law of Moçambique from www.mozlegal.com. It's an easy read in English and the essential first step. A big thank you to the publishers. Don't engage any lawyers or consultants in SA or Moçambique. You will be clipped to the bone. Don't try to deal directly with any officials. They will make the path infinitely long and infinitely dear for you. Do consider a local person for a 10% partnership in your Moçambique company. The right person can save you muito aggravation. The wrong person will be useless baggage. Do consult CPI in Maputo from the first. They are the Investment Project Co-ordinators. Their job is to get you legal. They will charge you R1000 as entry fee. They will save you a hundred times that amount Don't do any transaction that does not leave a big fat paper trail. Don't deal with any South African that does not have a platinum pedigree. Do a thorough background check. Don't expect the Moçambique government to intervene or act in fraud disputes between South Africans. They will just ask both parties to leave the country. Don't plan to start quasi-tourist enterprise by letting out your private residence. One of the few avenues available to the state to cancel land concessions is the use of land outside of the stated purpose e.g. private habitation versus tourism. Do understand that you will never own the land. Nor will you lease it. You will have a concession to use the land for a specified purpose. The concession is for 50 years or forever. Depending. Do expect to pay a once-off Occupation License, which is not provided for in the Land Law, of about 5.00MTn per square meter. Do understand that improvements can be bought and sold independently of the concession over the land. VAT is payable on the transfer of fixed assets and the transaction must be done before a Notary. Don't try to buy an illegal act in Moçambique. The briber and bribee are held equally culpable when the truth comes out, as it will. Do expect to pay an official a gratuity for doing his job. The official is getting paid about R1500 per month and you're going to swallow a piece of his country for the money that you earn in your lunch hour? Plus you will offend him with your shallow South African value system and your thinly veiled paternalistic racism. Expect punitive measures. |
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