Mozambique’s anti-corruption process, which asked civil servants to prove they were alive, is a positive advance in the nation’s transparency, according to senior officials.

About 30,000 “ghost” workers have now been uncovered on the civil service payroll after the audit, demonstrating the scale of corruption within the country’s internal infrastructure. The figure is almost a tenth of the total staff.

Omar Remane, from the diplomatic and economic affairs department at the Mozambique High Commission in London, said: “This was not a new investigation, it is the results of an ongoing process that every civil servant in every department in Mozambique now has to undertake to prove that they are working.

“It is a simple system of double-checking: if you do not present yourself, it means that there is something wrong. And if there is no evidence to suggest you’re working, the state has to stop your wages. The problem was that if someone passed away or left the service or was not legally working, somebody responsible did not pass the information to the public service or finance ministries, meaning that someone kept on receiving money illegally. The new process helps to prevent this type of fraud.”

Mozambique, not so long ago heralded as a jewel in the crown of African nations in terms of development, has been running an anti-corruption process focused on the heart of the government since 2015. The initiative forms part of the government’s anti-corruption measures following the $2bn “hidden loans scandal” of 2012-13 involving Credit Suisse and Russian lender VTB, the revelation of which prompted donors to cut off aid, forcing Mozambique into economic crisis.

Improved transparency helps investment in our country. The ‘proof of life’ process is a positive advance Omar Remane

In November, the UK’s Financial Conduct Authority abandoned its criminal investigation into the scandal. Credit Suisse admitted it made $23m (£18m) from the loans, which were unapproved by Mozambique’s parliament. “The case is under review by the Mozambique justice system, which has requested international cooperation. Negotiations in London between the government of Mozambique and its creditors has led to an agreement in principal over 60% of the debt. Further discussions are underway,” said Remane.

The “proof of life” process, which examined internal processes and audited the integrity of staff and contractors’ pay and expenses, has highlighted the deep-rooted corruption that continues to plague the country. However, the Maputo government believes the procedure will improve transparency and stability.

“This type of process helps to reduce corruption. The system was established with the technical support of some international partners,” said Remane.

The audit of roughly 348,000 staff identified 30,000 ghost employees and agents, falsely in receipt of wages or submitting fraudulent expense claims. The alleged deceptions amount to €220m (£199m) and includes claims submitted for work that was not carried out, as well as claims made in the name of deceased or fictitious people.

The “proof of life” audit will now be carried out annually.

Speaking to the state news agency Aim, Mozambique’s minister of state administration and civil service, Carmelita Namashulua, said “ghost” officials fuelled a wider web of corruption. She said disciplinary proceedings had been launched against 762 serving civil servants and others, for irregularities including misconduct.

Namashulua referred to favouritism, nepotism, illicit charges linked to employment and the falsification of licenses as significant challenges in fighting corruption.

Mozambique, with a population of just under 30 million, remains one of the world’s poorest states. The country is nonetheless leading the way among African nations in reducing poverty rates, which have dropped from 60.3% in 2003 to 48.4% in 2015. The country was ranked 153rd of the 180 included in Transparency International’s 2017 corruption index.

Referred to the comments of Namashulua, who omitted to mention whether anyone was to be prosecuted for fraud, Remane said: “Prosecutions are part of the public service administrative process. All cases will be individually assessed. If there is a conclusion that there should be criminal charges, then the case will be sent to the attorney general.”

Remane confirmed that financial charges could apply where evidence of misconduct is found, although he acknowledged the difficulties, “Because they may declare that they don’t have enough money to pay and so we will look at what belongings they have. It becomes very technical.”

“Improved transparency helps investment in our country and helps us to build a stable economy. The ‘proof of life’ process is a positive advance and everybody is happy with the result.

“Sometimes bad things happen but learning from them assists to improve systems, the balance and checks to create positive steps moving forward.”