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Home News Mozambique sues Credit Suisse in debt scandal

Mozambique sues Credit Suisse in debt scandal

Published on 28/02/2019

The Mozambique government has launched legal action against banking giant Credit Suisse in London amid a deepening scandal over the country’s default of $2 billion in loans, Bloomberg reported on Thursday.

The Swiss lender is being sued along with shipbuilder Privinvest and three individuals for potential breaches of commercial contracts, according to papers filed to the High Court on Wednesday.

It is alleged the Mozambique government took out loans amounting to $2 billion to buy a tuna-fishing fleet and surveillance ships, but hid the transaction from parliament and international donors.

An independent audit found that a quarter of the loan amount was diverted, and unaccounted for.

The United States alleges at least $200 million was spent on bribes and kickbacks, including $12 million on ex-finance minister Manuel Chang, who allegedly signed off on debt guarantees.

Chang was arrested last year on a US extradition request.

The US Department of Justice has accused three former Credit Suisse workers of helping to create $2 billion in maritime projects as a front.

They were arrested in London in early January and their extradition to the US is due to be heard shortly.