Cimentos da Beira: Bankruptcy or the Story of a Scam? (2)

Cimentos da Beira: Bankruptcy or the Story of a Scam? (2)

By Luis Nhachote

The anonymous tip-off that set off the turbulent legal process leading the Provincial Court of Sofala to declare Cimentos da Beira insolvent over a debt of seven million meticais turned out not to be so anonymous after all. It had a face — one that chose to emerge from the rubble and present itself before the law.

The so-called anonymous whistleblower was, in fact, Logo Engineering, an Italian-owned company that happens to be one of Cimentos da Beira’s creditors, although holding a minority stake.

Logo Engineering, playing a chameleon-like role, initially submitted the anonymous complaint that stirred judicial interest in the pursuit of “justice”. But only in December 2022 did it formally identify itself in the court records of the special insolvency proceedings filed with the Commercial Division of the Court.

With the blessing of the Mozambican justice system, Logo Engineering proceeded to orchestrate a series of illegal manoeuvres — which the Centre for Investigative Journalism (CJI) will reveal in this series, backed by facts and documents.

Italian Style / “The Italian Job”

Headquartered in the province of Piacenza, Logo Engineering played a starring role in the insolvency case against the cement company in 2023, represented by Paulo Manuel Barbosa Ferreira, a Portuguese national who once served as Cimentos da Beira’s Chief Financial Officer. Ferreira was the key witness when the anonymous complaint was submitted to the Provincial Prosecutor’s Office and when the court initially ruled in favour of the cement company, finding no sufficient grounds to support the claims.

That was the first case brought forward by the Italian firm, filed under case number 25/TJPS/SC/2022. A review of the case documents shows that the Public Prosecutor’s Office clearly acknowledged the absence of the legal requirements needed to proceed with insolvency. Nevertheless, the ambitions of the shadowy complainant did not fade — they seemingly intensified.

Unhappy with the court’s decision, the second act of the so-called Italian Job was launched: a new lawsuit, now under a visible identity and, once again, relying on the same testimony from former CFO Paulo Manuel Barbosa Ferreira. He reappeared openly as the only witness for the Italians, who, it appears, were determined — perhaps with tacit court support — to press ahead with a special insolvency claim, this time under case number 56/TJPS/SC/2022.

This second act was bolstered by the submission of forged documents, which left the court with no choice but to dismiss the case once the fraudulent nature of the evidence was confirmed.

To legitimise the legal claim, Paolo Cordani, the Italian behind Logo Engineering, forged a power of attorney in favour of his lawyer, Pereira Ferramenta, while he was not even in Mozambique. Ferramenta went on to use this forged document in court.

What stands out here is the court’s resistance to acknowledge what was obvious: the use of falsified documents. Had it not been for the persistence of the defence, this mission — or commissioned operation — might have succeeded. Serious questions must be raised as to why the presiding judge failed to recognise the irregularities in how the case was presented. This raises grave concerns about the quality, seriousness and competence of the judges involved. Legal experts consulted by CJI unanimously stated that the judge had no grounds to entertain a case that was a repetition of one he had already ruled on. Yet, the judge pressed ahead — seemingly blind to reason — before ultimately having to bow to the law.

Even with such a background, it is difficult to understand how a third act came to be. A court resembling that of the hidden debts saga — with the memory span of a goldfish — forgot its own previous rulings, turning jurisprudence into a kind of lottery: a game of chance for some, misfortune for others.

In 2024, Logo Engineering and its precious Portuguese witness launched yet another action on the same matter, registering case number 02/TJPS/SC/2024.

The case was presided over by Judge Alberto José Assane of the Commercial Division, who, in March 2024, issued a ruling in favour of the complainant — the Italian firm Logo Engineering.

It is worth noting that the judge issued this ruling without granting the cement company its sacred right to a defence, something he later admitted to the judicial inspectorate. Below is the judge’s written act of contrition.

“To the Honourable Inspector of the Judicial Inspectorate Special Insolvency Action

No. 02/TJPS/SC/2024

In response to the complaint filed by Cimentos da Beira, Ltd., I must admit that, indeed, by mere oversight, I issued a ruling in the above-mentioned case accepting the insolvency petition before hearing the defence.

In recognition of this error, I intend to rely on the appeal lodged against said ruling to correct the mistake (that is, to reverse the ruling in accordance with the law).

Although the error is evident, it is correctable through the normal legal process, as explained above, and we shall proceed accordingly to resolve all pending matters.

The Presiding Magistrate

Alberto José Assane”

This distinguished judge, whose duty was to uphold the law, violated it through what he calls a “mere oversight” — like a spoilt or unruly child doing as he pleases rather than what is required.

As the layers of this legal drama threatened to crack the foundation of the judicial system and severely impacted the defendant company, the management of Cimentos da Beira filed a complaint with the Superior Council of the Judiciary, detailing with supporting evidence their version of events. “What’s at stake here is that around 100 workers and their families may find themselves unemployed because the Commercial Division of the Provincial Court of Sofala, almost at the behest of this foreign entity and without due process, is ordering the company’s dissolution,” reads one excerpt from the document obtained by the CJI from trusted sources within the judiciary.

The official filings by Logo Engineering list its address as Via Rodolfo Roselli, 67, 29122 Piacenza (PC), Italy.

Logo’s petition that led to the court’s decision to declare insolvency was based on a debt of 7,000,000.00 meticais (seven million meticais). Demanding the bankruptcy of a company that pays approximately 10 million meticais per month in electricity costs appears absurd. The more reasonable approach would have been to negotiate the debt rather than destroy the company.

Once given the chance to defend itself, the cement company demonstrated that its asset value was approximately 400 times greater than the amount claimed.

Ironically — whether Calabrian, Sicilian or Neapolitan is yet to be determined — the company demanding the insolvency of Cimentos da Beira was itself insolvent, currently undergoing liquidation in Italy. This was confirmed by both the Italian Chamber of Commerce and the relevant Bankruptcy Court in that country. Despite this, Mozambican courts seemed captivated by the elaborate and persistent schemes, bordering on mafia-style tactics, engineered by this transalpine company. Even though documents from foreign entities are legally required to be authenticated through Mozambican embassies in their respective countries, this was entirely bypassed in the case — conveniently overlooked by the presiding judge, who, by all appearances, was acting on prior instructions.

The party filing for insolvency was Logo Engineering, the firm of Paolo Cordani, who entered Mozambique on 17 August 2022, left the same month, and returned for another month in February 2023.

Through its investigation of the case files, the CJI discovered that Paolo Cordani submitted a notarised power of attorney while he was outside the country — an act that is not only illegal but also constitutes a criminal offence. This raises questions about possible negligence or complicity by the notary involved. According to Article 323 of the Mozambican Penal Code, such an offence is punishable by 1 to 8 years’ imprisonment.

In Mozambique, organised crime is testing institutions — assessing whether they are robust, whether they can administer justice seriously, and whether they are alert enough to act in time to prevent wrongdoers from slipping through the cracks.

In his immigration filings to Mozambican authorities, Cordani listed a phone number well known to certain circles in journalism and law enforcement: it belongs to Umberto Sartori, an Italo-Mozambican linked to the hospitality industry.

(To be continued)