Mozambique has achieved a significant victory in its $3.1-billion lawsuit at London’s High Court against Emirati-Lebanese shipbuilder Privinvest. The case involves allegations of bribery connected to the decade-old “tuna bond” scandal.
Mozambique’s lawsuit against Privinvest and its deceased owner, Iskandar Safa, alleged that they bribed Mozambican officials and Credit Suisse bankers.
On Monday, Judge Robin Knowles announced that he had ruled “substantially in favor” of Mozambique.
His written conclusion stated that Mozambique is “entitled, in relation to Mr. Safa and the Privinvest companies”, to acquire just over $825 million.
The case focused on agreements made by state-owned companies with Privinvest for loans and bonds from banks, including Credit Suisse, in 2013 and 2014. These deals were for fishing vessels and maritime security projects, which were supported by unrevealed state guarantees.
However, hundreds of millions of dollars were siphoned off, and when the debt was exposed in 2016, international donors such as the International Monetary Fund discontinued aid. This resulted in a currency crash, defaults, and severe financial fluctuation.
In its London case, Mozambique sued Credit Suisse, now acquired by UBS, as well as three former employees of the Swiss bank who had confessed to charges in the U.S. The lawsuit also named Privinvest, Safa, and other involved parties.
On the eve of the trial in October, Mozambique and Credit Suisse reached a last-minute settlement, leading Mozambique to shift its focus to Privinvest.
Mozambique claimed that more than $136 million was used to obtain advantageous terms for three projects, including one focused on exploiting the country’s tuna-rich coastal waters.
Privinvest and Safa denied any illegal activity, claiming that all payments were legitimate.
Their defense contended that the lawsuit was a politically motivated effort aimed at diverting blame from Mozambican President Filipe Nyusi and other high-ranking officials.
Knowles additionally ruled that Mozambique is entitled to compensation for around $1.5 billion in payments.
This includes roughly $1.4 billion that Mozambique is committed to paying bondholders through 2031.
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