LAM Mozambique Rocked by Audit Revealing Serious Flaws in \$25 Million Aircraft Purchase
Mozambique's national airline, Linhas Aéreas de Moçambique (LAM), is facing one of the most serious governance crises in its history, following the release of an internal audit report that exposes significant irregularities in a 25 million US dollar aircraft acquisition. The findings, contained in a document of more than 70 pages, raise pressing questions about accountability, transparency and political interference within one of Southern Africa's most strategic state-owned carriers, and carry major implications for the wider African aviation and travel industry.
At the heart of the scandal are two Embraer E190 aircraft that have been grounded since December 2025 due to critical engine defects. According to the audit, the acquisition process bypassed standard regulatory procedures, ignored required board approvals and skipped essential technical inspections before the aircraft were brought into service. The report describes a troubling scenario marked by alleged governance failures, contractual irregularities, an absence of feasibility studies, and suspicions of political interference in decisions involving millions of dollars of public funds.
The revelations have escalated quickly into a full-blown criminal investigation. Mozambique's Central Office for the Fight Against Corruption (GCCC) has confirmed that at least five criminal cases have been opened, focusing on alleged irregularities in aircraft leasing, procurement processes and service contracts across multiple stages of investigation. One key line of enquiry examines problems in the sale and purchase of aircraft, alongside procurement of staff uniforms, catering services, fuel, and other operations involving payments made without proper contractual justification.
The political fallout has been equally striking. Mozambican President Daniel Chapo has openly denounced what he described as a "den of corruption" embedded within LAM. He recounted how, during efforts to acquire new aircraft, individuals travelled abroad with funds provided by new shareholders and spent 15 days in Europe supposedly inspecting aircraft, only to return to Mozambique reporting that they had not managed to inspect a single one. The President has accused airline staff with conflicts of interest of actively sabotaging the government's rescue efforts, and has promised a sweeping restructuring of the carrier, including its human resources framework.
In response, the government is moving to commission a forensic audit covering the last ten years of LAM's accounts, while the General Inspectorates of Finance and Public Administration have been tasked with carrying out further reviews of the airline's management. Because several of the incidents under investigation are said to have taken place across five foreign jurisdictions, international cooperation will be required to gather the necessary evidence.
The operational impact has been severe. Beyond the two grounded Embraer E190s, further reports indicate that additional aircraft acquired under the restructuring plan remain grounded in South Africa due to maintenance issues, further squeezing LAM's already limited fleet. The airline has struggled with operational challenges for years, driven by a reduced fleet, lack of investment and a record of non-fatal incidents that experts have linked to deficient maintenance practices.
For the African travel industry, the LAM crisis is far more than a national story. Mozambique is an increasingly important tourism destination, celebrated for its coastline, islands, marine reserves and cultural richness. Reduced capacity at the national carrier directly affects tour operators, hotels, safari companies and travel agents across the region, particularly those building itineraries linking Mozambique to South Africa, Tanzania and the wider Indian Ocean market. Encouragingly, regional carriers are stepping in, with expanded airlift into Mozambique helping to soften the impact on inbound tourism even as scrutiny of LAM intensifies.
Broader lessons are also emerging for the continent's aviation sector. The scale of the alleged misconduct, combined with the international dimension of the investigations, underscores the importance of robust corporate governance, transparent procurement and rigorous technical due diligence in fleet expansion decisions. As African aviation continues its post-pandemic recovery, state-owned carriers across the continent will be watching closely to ensure their own procurement frameworks are protected from similar vulnerabilities.
For travel professionals across sub-Saharan Africa, the coming months will be decisive. If the promised restructuring succeeds and criminal accountability is delivered, LAM could re-emerge as a more disciplined and reliable player in regional aviation. Should the crisis deepen, however, private and foreign carriers are likely to seize the opportunity to expand their footprint in Mozambique, reshaping the country's connectivity landscape for years to come.
