Law No. 5/98 of June 15, 1998 - Cheque Law

Monday, June 15, 1998 I SERIES - Number 23 REPUBLIC GAZETTE OFFICIAL PUBLICATION OF THE REPUBLIC OF MOZAMBIQUE SUPPLEMENT SUMMARY Assembly of the Republic Law No. 5/98: Approves the Cheque Law. Law No. 6/98: Revokes Law No. 7/79 of July 3, its Regulation, and Legislative Decree No. 2671 of January 4, 1966. Law No. 7/98: Establishes the conduct norms applicable to holders of government offices and specifies their duties and rights, recognizing the special requirements of their exercise.

ASSEMBLY OF THE REPUBLIC Law No. 5/98 of June 15

MAKING IT NECESSARY TO PROMOTE THE PRESTIGE AND DIGNITY OF THE CHEQUE AS A MEANS OF PAYMENT, SO THAT THIS INSTRUMENT MAY CIRCULATE FREELY AND WITH THE DESIRED CONFIDENCE, THE ASSEMBLY OF THE REPUBLIC, IN THE USE OF THE COMPETENCIES CONFERRED UPON IT BY PARAGRAPH 1 OF ARTICLE 135 OF THE CONSTITUTION OF THE REPUBLIC, DETERMINES:

CHAPTER I Restrictions on the use of the cheque

ARTICLE 1 (Termination of the cheque convention)

1. CREDIT INSTITUTIONS AND OTHERS EQUIVALENT TO THEM BY LAW, HEREIN GENERICALLY DESIGNATED AS BANKS, WHOSE ATTRIBUTES INCLUDE IN PARTICULAR RECEIVING DEPOSITS FROM THE PUBLIC, MUST TERMINATE THE CHEQUE CONVENTION THEY MAINTAIN WITH ACCOUNT HOLDERS, THROUGH WHICH THESE INDIVIDUALS FREELY OPERATE THROUGH CHEQUES, WHENEVER, IN THEIR OWN NAME OR ON BEHALF OF ANOTHER, THEY MAKE IMPROPER USE OF IT, PUTTING AT RISK THE SPIRIT OF CONFIDENCE THAT GOVERNS ITS CIRCULATION.
2. IT IS PRESUMED THAT THERE IS IMPROPER USE OF THE CHEQUE WHEN, HAVING HAD PAYMENT OF A CHEQUE REFUSED DUE TO LACK OR INSUFFICIENCY OF PROVISIONS, THE HOLDER OF THE RESPECTIVE ACCOUNT DOES NOT PROCEED TO ITS REGULARIZATION WITHIN A PERIOD OF 10 DAYS, COUNTED FROM THE RECEIPT OF THE NOTIFICATION FROM THE BANK COMMUNICATING THE SITUATION.
3. IN CASES OF JOINT ACCOUNT HOLDERSHIP, THE TERMINATION MAY BE CANCELLED WITH RESPECT TO THOSE WHO PROVE TO BE UNINVOLVED IN THE ACTS THAT MOTIVATED THE TERMINATION.
4. THE TERMINATION OF THE CHEQUE CONVENTION IS NOTIFIED BY THE BANK MAKING THE DECISION TO ALL ENTITIES COVERED BY IT, THESE BEING PROHIBITED FROM ISSUING OR SUBSCRIBING CHEQUES ON THAT BANK AND OBLIGED TO RETURN THE BOOKS OR CHEQUE FORMS IN THEIR POSSESSION.
5. THE BANK MAKING THE DECISION TO TERMINATE CANNOT ENTER INTO A NEW CHEQUE CONVENTION WITH THE SAME ENTITY BEFORE SIX MONTHS HAVE ELAPSED, UNLESS THERE ARE ESPECIALLY WEIGHTY CIRCUMSTANCES AND UPON PROOF OF PAYMENT OF ALL CHEQUES OR THE SUPPRESSION OF OTHER IRREGULARITIES THAT MOTIVATED THE DECISION.

ARTICLE 2 (Communications)

1. BANKS COMMUNICATE TO THE BANK OF MOZAMBIQUE, WITHIN THE PERIOD AND FORM DETERMINED BY IT, ALL CASES OF: a) TERMINATION OF CHEQUE CONVENTIONS THEY HAVE DECIDED AND THE ENTERING INTO OF A NEW CONVENTION WITH THE SAME ENTITIES; b) ISSUANCE OF CHEQUES DRAWN ON THEMSELVES, ON A DATE SUBSEQUENT TO THE NOTIFICATION REFERRED TO IN PARAGRAPH 4 OF ARTICLE 1 OF THIS LAW, BY ENTITIES COVERED BY THE TERMINATION.
2. BASED ON THESE COMMUNICATIONS, THE BANK OF MOZAMBIQUE REGISTERS ALL CASES OF ENTITIES COVERED BY THE TERMINATION.

ARTICLE 3 (Listing of cheque users who pose a risk)

1. ENTITIES THAT HAVE BEEN THE OBJECT OF TWO CONSECUTIVE TERMINATIONS OF THE CHEQUE CONVENTION, EVEN IF IN DIFFERENT DRAWING BANKS, OR THAT HAVE VIOLATED THE PROHIBITION OF PARAGRAPH 4 OF ARTICLE 1 OF THIS LAW, ARE INCLUDED IN A LISTING OF USERS WHO POSE A RISK, TO BE COMMUNICATED BY THE BANK OF MOZAMBIQUE TO THE ENTIRE NATIONAL BANKING SYSTEM.
2. NO BANK MAY CONFIDE CHEQUE BOOKS OR FORMS TO ENTITIES THAT ARE PART OF THE LISTING REFERRED TO IN THE PREVIOUS PARAGRAPH.
3. BANKS THAT, ON THE DATE OF THE COMMUNICATION REFERRED TO IN PARAGRAPH 1 OF THIS ARTICLE, MAINTAIN A CHEQUE CONVENTION WITH ENTITIES THAT ARE PART OF THE LISTING REFERRED TO IN THE SAME PARAGRAPH, MUST PROCEED TO THEIR IMMEDIATE TERMINATION, WITH PARAGRAPHS 3 AND 4 OF ARTICLE 1 OF THIS LAW BEING APPLICABLE, WITH THE NECESSARY ADAPTATIONS.

ARTICLE 4 (Removal from the listing)

1. ENTITIES LISTED IN ARTICLE 3 OF THIS LAW CANNOT, IN THE TWO YEARS IMMEDIATELY FOLLOWING THE TERMINATION OF THE CHEQUE CONVENTION, ENTER INTO A NEW CONVENTION, EXCEPT IF THE BANK OF MOZAMBIQUE, FACING ESPECIALLY WEIGHTY CIRCUMSTANCES, DECIDES TO REMOVE NAMES FROM THE AFOREMENTIONED LISTING.
2. AFTER THE PERIOD REFERRED TO IN THE PREVIOUS PARAGRAPH, BANKS MAY ENTER INTO NEW CHEQUE CONVENTIONS WITH COVERED ENTITIES, HOWEVER, A SINGLE TERMINATION OF THAT CONVENTION IS SUFFICIENT FOR THEM TO BE INCLUDED AGAIN IN THE LISTING PROVIDED FOR IN PARAGRAPH 1 OF ARTICLE 3 OF THIS LAW.

ARTICLE 5 (Notifications)

1. THE NOTIFICATIONS REFERRED TO IN ARTICLES 1 AND 2 OF THIS LAW ARE EFFECTED VIA REGISTERED LETTER WITH ACKNOWLEDGEMENT OF RECEIPT SENT TO THE LAST DOMICILE DECLARED TO THE DRAWING BANKS AND ARE PRESUMED TO HAVE BEEN MADE, UNLESS PROOF TO THE CONTRARY, ON THE FIFTH DAY FOLLOWING THE REGISTRATION OR ON THE FIRST BUSINESS DAY FOLLOWING IF THAT IS NOT A BUSINESS DAY.
2. THE NOTIFICATION IS CONSIDERED EFFECTED EVEN IF THE NOTIFIED PARTY REFUSES TO RECEIVE THE LETTER OR IS NOT FOUND AT THE INDICATED DOMICILE.

ARTICLE 6 (Movement of individual cheques)

1. THE TERMINATION OF THE CHEQUE CONVENTION DOES NOT PREVENT THE MAINTENANCE OF THE ACCOUNT, AND ITS HOLDER MAY MAKE DEPOSITS AND PROCEED TO ITS MOVEMENT THROUGH INDIVIDUAL CHEQUES, VISITED OR NOT BY THE DRAWING BANKS, ACCORDING TO WHETHER THEY ARE DESTINED FOR PAYMENTS OR SIMPLE WITHDRAWALS, EVEN IF THE DRAWER APPEARS ON THE LISTING OF CHEQUE USERS WHO POSE A RISK, DISTRIBUTED BY THE BANK OF MOZAMBIQUE, NECESSARY FORMS MAY BE PROVIDED FOR THIS PURPOSE.
2. WITHOUT PREJUDICE OF THE PROVISIONS IN THIS CHAPTER, PAYMENT OF CHEQUES CANNOT BE REFUSED ON THE GROUNDS OF THE TERMINATION OF THE CHEQUE CONVENTION OR THE FACT THAT THE DRAWER APPEARS ON THE LISTING DISSEMINATED BY THE BANK OF MOZAMBIQUE, WHEN THE DRAWN ACCOUNT HAS SUFFICIENT PROVISIONS FOR THE PURPOSE.

ARTICLE 7 (Competence of the Bank of Mozambique)

1. THE BANK OF MOZAMBIQUE MUST FIX THE REQUIREMENTS TO BE OBSERVED BY BANKS IN THE OPENING AND MAINTENANCE OF ACCOUNTS FREELY MOVABLE BY MEANS OF CHEQUE AND IN THE PROVISION OF FORMS OR "cheque books", IN PARTICULAR REGARDING THE IDENTIFICATION OF THEIR HOLDERS AND REPRESENTATIVES, AND ALSO TRANSMIT TO BANKS INSTRUCTIONS AIMED AT THE UNIFORM APPLICATION OF THE PROVISIONS IN THIS CHAPTER.
2. THE BANK OF MOZAMBIQUE MUST ALSO ESTABLISH NORMS ON THE STANDARDIZATION OF THE CHEQUE.

CHAPTER II Obligation of payment

ARTICLE 8 (Mandatory payment by the drawn bank)

1. NOTWITHSTANDING THE LACK OR INSUFFICIENCY OF PROVISIONS, BANKS ARE OBLIGED TO PAY THE BEARER ANY CHEQUE ISSUED THROUGH FORMS PROVIDED BY THEM, OF AN AMOUNT NOT EXCEEDING 250,000.00 MT.
2. THE PROVISION OF PARAGRAPH 1 OF THIS ARTICLE ALSO APPLIES TO CASES WHERE THE DIFFERENCE BETWEEN THE CHEQUE PRESENTED FOR PAYMENT AND THE EXISTING BALANCE DOES NOT EXCEED THE VALUE INDICATED THEREIN.
3. THE PROVISIONS IN THIS ARTICLE DO NOT APPLY WHEN THE REFUSAL OF PAYMENT IS MOTIVATED BY CAUSES OTHER THAN THE LACK OR INSUFFICIENCY OF PROVISIONS.
4. THE VALUE INDICATED IN PARAGRAPH 1 OF THIS ARTICLE MAY BE UPDATED BY THE COUNCIL OF MINISTERS UPON PROPOSAL OF THE GOVERNOR OF THE BANK OF MOZAMBIQUE. WITHOUT PREJUDICE OF THE PROVISIONS IN THIS ARTICLE, BANKS, WITHIN THE SCOPE OF THEIR MANAGEMENT FUNCTIONS, MAY TAKE OTHER MEASURES THEY CONSIDER APPROPRIATE REGARDING CHEQUE EMITTERS IN THE SITUATION PROVIDED FOR IN PARAGRAPH 1 OF THIS ARTICLE.

ARTICLE 9 (Other cases of mandatory payment) BANKS ARE ALSO OBLIGED TO PAY, NOTWITHSTANDING THE LACK OR INSUFFICIENCY OF PROVISIONS, AND INDEPENDENTLY OF THEIR AMOUNT: a) ANY CHEQUE ISSUED THROUGH FORMS PROVIDED BY THEM IN VIOLATION OF THE DUTY OF TERMINATION REFERRED TO IN PARAGRAPHS 1 TO 4 OF ARTICLE 1 OF THIS LAW; b) ANY CHEQUE ISSUED THROUGH FORMS PROVIDED BY THEM, AFTER THE TERMINATION OF THE CHEQUE CONVENTION, IN VIOLATION OF THE DUTY REFERRED TO IN PARAGRAPH 5 OF ARTICLE 1 OF THIS LAW; c) ANY CHEQUE PROVIDED BY THEM TO ENTITIES THAT ARE PART OF THE LIST REFERRED TO IN ARTICLE 3 OF THIS LAW.

ARTICLE 10 (Subrogation) The DRAWN BANK THAT PAYS A CHEQUE, NOTWITHSTANDING THE ABSENCE, INSUFFICIENCY, OR UNAVAILABILITY OF PROVISIONS, IS SUBROGATED IN THE RIGHTS OF THE BEARER UP TO THE LIMIT OF THE AMOUNT PAID.

CHAPTER III Penal regime of the cheque

ARTICLE 11 (Crime equivalent to issuing a cheque without provisions)

1. WITHOUT PREJUDICE OF WHAT IS PROVIDED IN SPECIFIC LEGISLATION, ANYONE WHO: a) PROHIBITS THE DRAWING BANK, WITHIN THE PERIOD FOR PRESENTATION FOR PAYMENT INDICATED BY THE UNIFORM LEGISLATION RELATIVE TO THE CHEQUE, FROM PAYING A CHEQUE ISSUED AND DELIVERED, WITHOUT THERE BEING ANY RELEVANT LEGAL REASON; b) ENDORSES A CHEQUE THEY RECEIVED, KNOWING OF THE LACK OF PROVISIONS; SHALL INCUR THE SAME PENALTIES FOR THE CRIME OF ISSUING A CHEQUE WITHOUT PROVISIONS.
2. LIABILITY FOR THE PRACTICE OF THE CRIME OF ISSUING CHEQUES WITHOUT PROVISIONS IS EXTINGUISHED BY PAYMENT, EFFECTED WITHIN FIVE DAYS AFTER THE FIRST INTERROGATION OF THE ACCUSED IN CRIMINAL PROCEEDINGS, DIRECTLY TO THE BEARER OF THE CHEQUE, OF THE AMOUNT OF THE CHEQUE, PLUS INTEREST CALCULATED AT THE MAXIMUM INTEREST RATE PRACTICED AT THE TIME OF PAYMENT BY THE DRAWING BANK FOR CREDIT OPERATIONS, PLUS AN ADDITIONAL 10 PERCENTAGE POINTS, WHICH MAY BE EFFECTED BY DEPOSIT TO ITS ORDER IF THE BEARER OF THE CHEQUE REFUSES TO RECEIVE OR GIVE QUITTANCE.
3. THE PRINCIPALS ARE CIVILLY AND SOLIDARILY RESPONSIBLE FOR THE PAYMENT OF FINES AND COMPENSATION IN WHICH THEIR REPRESENTATIVES ARE CONDEMNED, PROVIDED THAT THESE HAVE ACTED IN THAT CAPACITY AND IN THE INTEREST OF THE REPRESENTED.

ARTICLE 12 (Accessory penalties)

1. ANYONE CONDEMNED FOR THE CRIME INDICATED IN THE PREVIOUS ARTICLE MAY BE SUBJECT BY THE COURT TO THE FOLLOWING ACCESSORY PENALTIES: a) TEMPORARY PROHIBITION ON THE USE OF THE CHEQUE; b) PUBLICITY OF THE CONDEMNATORY DECISION.
2. THE TEMPORARY PROHIBITION ON THE USE OF THE CHEQUE HAS A MINIMUM DURATION OF 6 MONTHS AND A MAXIMUM OF 3 YEARS.
3. THE PUBLICITY OF THE CONDEMNATORY DECISION IS MADE, AT THE EXPENSE OF THE CONDEMNED, THROUGH POSTING OF A NOTICE IN THE ADMINISTRATIVE AREA OF THE PRACTICE OF THE OFFENCE, FOR A PERIOD NOT LESS THAN THIRTY DAYS, IN THE LOCATION USUALLY DESTINED FOR THIS PURPOSE.
4. IN PARTICULARLY GRAVE CASES, THE COURT MAY, ALSO AT THE EXPENSE OF THE CONDEMNED, ORDER THAT THE PUBLICITY BE MADE IN THE DAILY NEWSPAPER WITH THE LARGEST CIRCULATION.
5. THE PUBLICITY IS MADE BY EXTRACT CONTAINING THE ELEMENTS OF THE OFFENCE AND THE SANCTIONS APPLIED, AS WELL AS THE IDENTIFICATION OF THE AGENT.
6. THE JUDGMENT THAT CONDEMNS TO TEMPORARY PROHIBITION ON THE USE OF THE CHEQUE MUST ORDER THE CONDEMNED TO RETURN, TO THE BANKS THAT PROVIDED THEM, ALL CHEQUE FORMS IN THEIR POSSESSION OR IN THE POSSESSION OF THEIR AGENTS.
7. ANYONE WHO DOES NOT RESPECT THE INJUNCTION REFERRED TO IN THE PREVIOUS PARAGRAPH INCURS THE PENALTY FOR THE CRIME OF DISOBEDIENCE, AND ANYONE WHO ISSUES CHEQUES WHILE THE PROHIBITION FIXED IN THE JUDGMENT IS IN EFFECT INCURS THE PENALTY FOR QUALIFIED CRIME OF DISOBEDIENCE.
8. THE JUDGMENT THAT CONDEMNS TO PROHIBITION ON THE USE OF THE CHEQUE IS COMMUNICATED TO THE BANK OF MOZAMBIQUE, WHICH INFORMS ALL BANKS THAT THEY MUST ABSTAIN FROM PROVIDING THE CONDEMNED AND THEIR AGENTS CHEQUES FOR THE MOVEMENT OF THEIR DEPOSIT ACCOUNTS, EXCEPT IN THE CASE PROVIDED FOR IN ARTICLE 6 OF THIS LAW.

ARTICLE 13 (Prohibition of posting notice and non-acceptance of cheque) IT IS PROHIBITED TO POST, IN A LOCATION WHERE FINANCIAL OPERATIONS OR ANY COMMERCIAL ACTS ARE CARRIED OUT, A NOTICE OF NON-ACCEPTANCE OF PAYMENTS BY MEANS OF CHEQUE.

CHAPTER IV Offences

ARTICLE 14 (Offences)

1. THE FOLLOWING CONSTITUTE OFFENCES PUNISHABLE WITH A FINE OF 500,000.00 MT TO 6,000,000.00 MT: a) FAILURE TO TERMINATE THE CHEQUE CONVENTION OR ENTERING INTO A NEW CHEQUE CONVENTION IN VIOLATION OF THE PROVISIONS OF ARTICLE 1 OF THIS LAW; b) FAILURE TO COMMUNICATE TO THE BANK OF MOZAMBIQUE AS REFERRED TO IN PARAGRAPH 1 OF ARTICLE 2 OF THIS LAW; c) PROVISION OF CHEQUE FORMS OR FAILURE TO PROCEED TO IMMEDIATE TERMINATION, IN VIOLATION OF THE PROVISIONS OF PARAGRAPHS 2 AND 3 OF ARTICLE 3 OF THIS LAW; d) NON-OBSERVANCE OF THE NORMS REFERRED TO IN ARTICLE 7 OF THIS LAW; e) PROVISION OF CHEQUES IN VIOLATION OF THE PROVISIONS OF PARAGRAPH 8 OF ARTICLE 12 OF THIS LAW.
2. VIOLATION OF THE PROHIBITION CONTAINED IN ARTICLE 13 OF THIS LAW IS PUNISHABLE WITH A FINE UP TO 2,500,000.00 MT.
3. THE INSTRUCTION OF THE OFFENCE PROCESS AND THE APPLICATION OF THE FINE ARE COMPETENT TO THE BANK OF MOZAMBIQUE.
4. THE FINES REFERRED TO IN THIS ARTICLE MAY BE UPDATED BY THE COUNCIL OF MINISTERS, BASED ON THE INFLATION REGISTERED DURING THE PERIOD.

CHAPTER V Diverse provisions

ARTICLE 15 (Microfilming)

1. CHEQUES PRESENTED FOR PAYMENT, WITH THE EXCEPTION OF THOSE RETURNED, MAY BE MICROFILMED, AND THEIR RESPECTIVE ORIGINALS MUST BE ARCHIVED FOR A PERIOD OF ONE YEAR, AFTER WHICH THEY MAY BE DESTROYED.
2. THE FORMALITIES TO BE OBSERVED IN MICROFILMING OPERATIONS, WITH A VIEW TO GUARANTEEING THEIR REGULARITY AND THE AUTHENTICITY OF THE MICROFILMS, AS WELL AS THE SECURITY CONDITIONS THAT MUST BE ADOPTED IN THE DESTRUCTION OF CHEQUES, ARE FIXED BY NOTICE OF THE GOVERNOR OF THE BANK OF MOZAMBIQUE.
3. COPIES OF CHEQUES HAVE THE SAME PROBATORY FORCE AS THEIR ORIGINALS, EVEN WHEN THEY ARE ENLARGEMENTS OBTAINED FROM MICROFILMING, PROVIDED THEY ARE AUTHENTICATED WITH THE SIGNATURE OF THE PERSON RESPONSIBLE FOR THE SERVICE OR THEIR SUBSTITUTE AND THE WHITE SEAL OF THE INSTITUTION.
4. FOR THE PURPOSES OF THIS ARTICLE, MICROFILMING IS UNDERSTOOD TO MEAN EITHER MICROFILMING PROPERLY SO CALLED, OR OTHER ANALOGOUS OR EQUIVALENT PROCESSES THAT HAVE AS THEIR PURPOSE THE CONSERVATION, REGISTRATION, AND ARCHIVING OF CHEQUES, PROVIDING A REDUCTION OF THE PHYSICAL SPACE OCCUPIED BY THEM AND WHOSE USE IS PREVIOUSLY AUTHORIZED BY THE BANK OF MOZAMBIQUE.

ARTICLE 16 (Regulation) The REGULATION PROVIDED FOR IN THIS LAW MUST BE CONCLUDED THIRTY DAYS BEFORE ITS ENTRY INTO FORCE.

CHAPTER VI Final provisions

ARTICLE 17 (Repealing norm) THE FOLLOWING ARE REPEALED: a) ARTICLE 1 OF DECREE-LAW NO. 182/74 OF MAY 2, WITH THE MODIFICATIONS INTRODUCED BY DECREE-LAW NO. 184/74 OF MAY 4, AND PORTARIA NO. 443/74 OF JULY 10, ORDERED TO BE APPLIED BY THE LATTER; b) ARTICLE 4 OF LAW NO. 1/79 OF JANUARY 11. RESTORING THE RULES FIXED IN DECREE NO. 13004 OF JANUARY 12, 1927, IN THAT WHICH DOES NOT CONTRADICT THIS LAW.

ARTICLE 18 (Entry into force) THIS LAW ENTERS INTO FORCE ONE HUNDRED AND EIGHTY DAYS AFTER ITS PUBLICATION. APPROVED BY THE ASSEMBLY OF THE REPUBLIC, ON APRIL 30, 1998. THE PRESIDENT OF THE ASSEMBLY OF THE REPUBLIC, Eduardo Joaquim Mulémbwè. PROMULGATED ON JUNE 15, 1998. PUBLISH. THE PRESIDENT OF THE REPUBLIC. JOAQUIM ALBERTO CHISSANO.

Law No. 6/98 of June 15

REVEALING THAT THE LEGAL FRAMEWORK GOVERNING THE EXERCISE OF COMMERCE IS INADEQUATE TO THE CURRENT SOCIO-ECONOMIC SITUATION OF THE COUNTRY, UNDER THE COMPETENCY CONFERRED UPON IT BY PARAGRAPH 1 OF ARTICLE 135 OF THE CONSTITUTION, THE ASSEMBLY OF THE REPUBLIC DETERMINES:

ARTICLE 1 (Revocation) LAW NO. 7/79 OF JULY 3, ITS RESPECTIVE REGULATION, AND LEGISLATIVE DECREE NO. 2671 OF JANUARY 4, 1966 ARE REPEALED.

ARTICLE 2 (Reinstatement provision) THE LEGAL PROVISIONS THAT HAD BEEN REPEALED BY LAW NO. 7/79 OF JULY 3 ARE RESTORED.

ARTICLE 3 (Regulation) The COUNCIL OF MINISTERS, TAKING INTO ACCOUNT THE NEED TO DEBUROCRATIZE THE LICENSING SYSTEM FOR COMMERCIAL ACTIVITIES, IMPART SWIFTNESS IN PROCEDURAL PROCESSING, DECENTRALIZE COMPETENCIES IN THE INSTRUCTION, APPRAISAL, AND DECISION OF PROCESSES, AND SIMPLIFY PROCEDURES FOR ACCESS TO THE EXERCISE OF ACTIVITY, APPROVES THE RELEVANT REGULATIONS, WITHIN A PERIOD OF SIXTY DAYS, COUNTING FROM THE DATE OF PUBLICATION OF THIS LAW.

ARTICLE 4 (Entry into force) THIS LAW ENTERS INTO FORCE IMMEDIATELY. APPROVED BY THE ASSEMBLY OF THE REPUBLIC, ON APRIL 30, 1998. THE PRESIDENT OF THE ASSEMBLY OF THE REPUBLIC, Eduardo Joaquim Mulémbwè. Promulgated on June 15, 1998, PUBLISH. THE PRESIDENT OF THE REPUBLIC, JOAQUIM ALBERTO CHISSANO,

Law No. 7/98 of June 15

THE EXERCISE OF GOVERNMENT OFFICES CARRIES A SET OF OBLIGATIONS RELATIVE TO EXCLUSIVITY, ETHICS, AND PROFESSIONAL DEONTOLOGY, TO WHICH CORRESPONDS A SET OF RIGHTS TENDING TO GUARANTEE THE DIGNITY INHERENT TO THE PURSUIT OF PUBLIC SERVICE. THE COMPLIANCE WITH CONSTITUTIONAL NORMS AND THE ANALYSIS OF THE CURRENT POLITICAL AND SOCIO-ECONOMIC CONTEXT MAKE IT NECESSARY TO REVISE THE CURRENT LEGISLATION ON THIS MATTER. IN THESE TERMS AND UNDER THE COMPETENCY ATTRIBUTED TO IT BY PARAGRAPH 1 OF ARTICLE 135 OF THE CONSTITUTION, THE ASSEMBLY OF THE REPUBLIC DETERMINES:

ARTICLE 1 (Object and scope of application)

1. THIS LAW ESTABLISHES THE CONDUCT NORMS APPLICABLE TO HOLDERS OF GOVERNMENT OFFICES AND SPECIFIES THEIR DUTIES AND RIGHTS, RECOGNIZING THE SPECIAL REQUIREMENTS OF THEIR EXERCISE.
2. THE FOLLOWING STATE DIRECTORS WITH POLITICAL-EXECUTIVE FUNCTIONS AND POLITICAL AGENTS OF THE PUBLIC ADMINISTRATION ARE CONSIDERED HOLDERS OF GOVERNMENT OFFICES: a) PRIME MINISTER; b) MINISTER; c) VICE-MINISTER; d) SECRETARY OF STATE; e) PROVINCIAL GOVERNOR; f) DISTRICT ADMINISTRATOR; g) ADMINISTRATIVE POST CHIEF.

ARTICLE 2 (General duties)

1. THE EXERCISE OF GOVERNMENT OFFICES COVERED BY ARTICLE 1 OF THIS LAW IMPLIES STRICT RESPECT FOR THE CONSTITUTION OF THE REPUBLIC AND THE LAW, AS WELL AS FOR THE NORMS OF PROFESSIONAL ETHICS THAT GUARANTEE TRANSPARENCY, PRESTIGE, AND DIGNITY OF THE FUNCTIONS EXERCISED AND OF THEIR RESPECTIVE HOLDERS.
2. THE FOLLOWING ARE THE DUTIES OF HOLDERS OF GOVERNMENT OFFICES: a) PLACE NATIONAL INTERESTS ABOVE ANY OTHERS; b) PERFORM THEIR FUNCTIONS WITH FULL ZEAL AND DEDICATION; c) NOT USE THE INFLUENCE OR POWER CONFERRED BY THE OFFICE TO OBTAIN PERSONAL ADVANTAGES, PROVIDE UNDUE FAVORS OR BENEFITS TO THIRD PARTIES; d) ADOPT BEHAVIOR THAT GUARANTEES THE PRESTIGE AND DIGNITY OF THE FUNCTIONS EXERCISED; e) DEVELOP ACTIVITIES INHERENT TO THEIR FUNCTIONS WITH DUE PRUDENCE, GUARANTEEING JUSTICE AND IMPARTIALITY IN THE DECISIONS THEY ISSUE AND ACTS THEY PRACTICE; f) INTERVENE, WITHIN THE SCOPE OF THEIR COMPETENCIES, IN ALL CASES WHERE A MANIFEST INJUSTICE OR PRETERITION OF CITIZENS' RIGHTS IS VERIFIED, WITH A VIEW TO REPAIRING OR PREVENTING VIOLATED INTERESTS OR RIGHTS, IN STRICT OBSERVANCE OF THE LAW; g) KEEP STATE SECRECY, EVEN AFTER THE CESSATION OF FUNCTIONS; h) DEDICATE THE MAXIMUM OF THEIR TIME TO THE EXERCISE OF TASKS OF THEIR OFFICE.

ARTICLE 3 (Specific duty)

1. THE HOLDERS OF GOVERNMENT OFFICES REFERRED TO IN ARTICLE 1 OF THIS LAW MUST PRESENT, BEFORE THE BEGINNING OF THEIR RESPECTIVE FUNCTIONS OR, IN CASE OF URGENCY, UP TO THIRTY DAYS AFTER THE BEGINNING THEREOF, A DECLARATION OF ASSETS, GOODS, AND INCOME, WHICH MUST CONTAIN: a) THE DESCRIPTION OF THE ELEMENTS OF THEIR ASSET PATRIMONY, ORDERED BY MAJOR HEADS, RELATIVE TO REAL ESTATE, SHARES, STOCKS, OR OTHER CAPITAL PARTS OF CIVIL OR COMMERCIAL COMPANIES, RIGHTS OVER SHIPS, AIRCRAFT, OR MOTOR VEHICLES, SECURITIES PORTFOLIOS, TIME DEPOSIT ACCOUNTS, AND CREDIT RIGHTS, IN THE COUNTRY OR ABROAD; b) THE DESCRIPTION OF THEIR RESPECTIVE LIABILITIES, IN PARTICULAR REGARDING THE STATE, CREDIT INSTITUTIONS, AND COMPANIES, IN THE COUNTRY OR ABROAD; c) THE MENTION OF SOCIAL POSITIONS THEY EXERCISE OR HAVE EXERCISED IN THE TWO YEARS PRECEDING THE DECLARATION, IN PUBLIC OR PRIVATE COMPANIES, NATIONAL OR INTERNATIONAL ORGANIZATIONS, IN THE COUNTRY OR ABROAD; d) THE INDICATION OF GROSS TAXABLE INCOME, FOR THE PURPOSES OF COMPLEMENTARY TAX, AS WELL AS THE OTHER INCOMES EXEMPT OR NOT SUBJECT TO THE SAME TAX; e) THE DESCRIPTION OF THE EXERCISE OF THE RIGHT TO USE AND BENEFIT FROM LAND, WITH THE INDICATION OF THE RESPECTIVE AREA.
2. THE DECLARATION REQUIRED UNDER THE TERMS OF THIS ARTICLE MUST ALSO INTEGRATE THE ASSETS OF SPOUSES, WHEN THE MARRIAGE REGIME IS COMMUNION OF ASSETS OR COMMUNION OF ACQUIRED PROPERTY OR IF IT IS A DE FACTO UNION, AS WELL AS THOSE OF MINOR OR INCAPABLE CHILDREN AND OTHER LEGAL DEPENDENTS OF WHOM THE HOLDER OF THE OFFICE IS A GUARDIAN.
3. ANNUALLY, EACH HOLDER OF A GOVERNMENT OFFICE COVERED BY THE PROVISIONS OF ARTICLE 1 OF THIS LAW MUST UPDATE THE DECLARATION REFERRED TO IN THIS ARTICLE OR DECLARE THAT THERE ARE NO DATA OR ELEMENTS TO UPDATE.
4. AN IDENTICAL DECLARATION MUST BE PRESENTED WITHIN A PERIOD OF SIXTY DAYS AFTER THE CESSATION OF THE FUNCTIONS EXERCISED.
5. THE DECLARATION TO BE PROVIDED UNDER THE TERMS OF THIS ARTICLE FOLLOWS THE FORM DEFINED IN ANNEX I OF THIS LAW, WHICH FORMS AN INTEGRAL PART THEREOF.

ARTICLE 4 (Incompatibilities)

1. THE FOLLOWING ARE INCOMPATIBLE WITH THE EXERCISE OF THE OFFICES REFERRED TO IN ARTICLE 1 OF THIS LAW: a) THE EXERCISE OF ANOTHER REMUNERATED ACTIVITY, EXCEPT FOR ACTIVITIES OF A CULTURAL, RESEARCH, OR TEACHING NATURE; b) THE ADMINISTRATION OR MANAGEMENT OF BUSINESS; c) THE EXERCISE, EVEN IF UNREMUNERATED, OF ACTIVITIES RELATED TO THE SCOPE OF DECISION OF THE HOLDER OF THE OFFICE; d) THE RECEIPT OF COMMISSIONS ON A PERSONAL BASIS BY REASON OF THE FUNCTIONS PERFORMED.
2. THE PROVISION IN THE PREVIOUS PARAGRAPH DOES NOT PREJUDICE THE EXERCISE OF THE MANAGEMENT OF FAMILY PRODUCTION OR OWN ECONOMIC ACTIVITY, WITHOUT PREJUDICE OF THE DEDICATION DUE TO THE EXERCISE OF THE OFFICE.
3. THE EXERCISE OF RIGHTS ARISING FROM SUCCESSION OCCURRING DURING THE EXERCISE OF THE GOVERNMENT OFFICES REFERRED TO IN ARTICLE 1 OF THIS LAW, WHICH IMPLIES ANY OF THE INCOMPATIBILITIES REFERRED TO IN PARAGRAPH 1 OF THIS ARTICLE, IS CONFERRED UPON ANOTHER PERSON, UNTIL THE CESSATION OF THEIR RESPECTIVE FUNCTIONS.
4. BEFORE THE BEGINNING OF THE EXERCISE OF THEIR RESPECTIVE FUNCTIONS, THE HOLDERS OF GOVERNMENT OFFICES MENTIONED IN ARTICLE 1 OF THIS LAW MUST PRESENT A DECLARATION THAT THEY ARE NOT COVERED BY ANY OF THE INCOMPATIBILITIES REFERRED TO IN PARAGRAPH 1 OF THIS ARTICLE OR, IN THE CASE OF BEING SO, CEASE THE INCOMPATIBLE ACTIVITIES UNTIL THE BEGINNING OF THEIR FUNCTIONS.

ARTICLE 5 (Guarantees of exemption and impartiality) HOLDERS OF GOVERNMENT OFFICES MENTIONED IN ARTICLE 1 OF THIS LAW ARE PROHIBITED FROM INTERVENING, ON BEHALF OF THE STATE, IN ADMINISTRATIVE PROCESSES, ACTS, OR CONTRACTS, OF PUBLIC OR PRIVATE LAW: a) WHEN THEY HAVE AN INTEREST THEMSELVES, EVEN IF REPRESENTED BY ANOTHER PERSON; b) WHEN THEY OR AS A REPRESENTATIVE OF ANOTHER PERSON, THEIR SPOUSE, RELATIVE, OR AFFINE IN A DIRECT LINE, IN A COLATERAL LINE UP TO THE 2ND DEGREE, OR ANY PERSON WITH WHOM THEY LIVE IN A COMMON ECONOMY, HAVE AN INTEREST; c) WHEN THEY OR AS A REPRESENTATIVE OF ANOTHER PERSON HAVE AN INTEREST IN A SIMILAR QUESTION TO THAT WHICH MUST BE DECIDED OR WHEN SUCH A SITUATION EXISTS REGARDING A PERSON COVERED BY THE PREVIOUS ALINEA; d) WHEN THEY HAVE INTERVENED AS AN EXPERT OR AGENT OR HAVE GIVEN AN OPINION ON THE QUESTION TO BE DECIDED OR RESOLVED. e) WHEN THEY HAVE INTERVENED IN THE PROCESS, AS AGENT, THEIR SPOUSE, RELATIVE, OR AFFINE IN A DIRECT LINE OR IN A COLATERAL LINE UP TO THE 2ND DEGREE, AS WELL AS ANY PERSON WITH WHOM THEY LIVE IN A COMMON ECONOMY; f) WHEN AGAINST THEM OR ANY OF THE PERSONS COVERED BY THIS ARTICLE, A LAWSUIT HAS BEEN INITIATED BY ANY OF THE INTERESTED PARTIES IN THE QUESTION TO BE DECIDED OR THEIR RESPECTIVE SPOUSES.

ARTICLE 6 (Declaration of impediment)

1. WHEN, UNDER THE TERMS OF THE PREVIOUS ARTICLE, A CAUSE OF IMPEDIMENT IS VERIFIED, THE HOLDER OF THE GOVERNMENT OFFICE MUST, FOR THE PURPOSES OF DECLARATION OF IMPEDIMENT, COMMUNICATE SUCH FACT IN THE FOLLOWING TERMS: a) IN THE CASE OF THE OFFICE OF PRIME...