The new directors are former Transport Minister Paulo Muxanga, whose most recent post is chairman of the board of the Mozambican National Road Authority (ANE), and Gildo Simbunde, a former director of the publicly-owned electricity company, EDM.
The agreement on Cahora Bassa, signed by Mozambican President Armando Guebuza and Portuguese Prime Minister Jose Socrates, envisages the transfer of majority control in HCB from Portugal to Mozambique. The Mozambican shareholding will rise from 18 to 85 per cent, while the Portuguese holding falls from 82 to 15 per cent.
During the transitional period, while the Mozambican government has not yet paid the agreed sum of 950 million US dollars, HCB will be run by a nine member board - with five directors (including the chairperson) appointed by the Portuguese government, and four appointed by Mozambique.
Previously Mozambique only had the right to appoint two directors. The two Mozambicans already on the board are former industry minister Octavio Muthemba, and the former chairperson of Radio Mozambique, Manuel Tome, who is also head of the parliamentary group of the ruling Frelimo Party.
SOURCE: AIM
