A day before trial Credit Suisse, Mozambique reach resolution in “tuna bond” scandal

Just one day before a high-profile civil trial was scheduled to start, Credit Suisse and Mozambique agreed to a settlement over the “tuna bond” scandal that anti-corruption experts called “the most egregious corruption offense of the decade.”

Credit Suisse’s new owner, UBS, which completed its acquisition of the bank in June 2023, announced on Sunday, 1 October, it had come to an out-of-court settlement with Mozambique, which was suing the bank over its involvement in fraud which totaled more than USD 1.5 billion (EUR 1.43 billion).

"The parties have mutually released each other from any liabilities and claims relating to the transactions," UBS said in a statement, Reuters reported. "The parties are pleased to have resolved this long-running dispute.”

The deal will see UBS forgive part of a loan of less than USD 100 million (EUR 95 million) that Credit Suisse made to Mozambique in 2013. 

Even with the settlement, the case is far from over. Mozambique subsequently announced during a press conference it will pursue compensation from Lebanon- and U.A.E.-based shipbuilder Privinvest in a London court, Reuters reported. The settlement with Credit Suisse, the Mozambican government clarified, is only related to a 2013 loan to Proindicus, a state-owned company.

Mozambique's government said it plans to target Privinvest in the lawsuit for its role in allegedly paying bribes to corrupt Mozambican officials.

The long-running scandal involves Credit Suisse Group and its subsidiary, Credit Suisse Securities, and a conspiracy to commit fraud through a planned Mozambique tuna-fishing project. The bank originally was a source of funding for Mozambique’s proclaimed attempt to build a new coastal patrol force and a state-owned tuna fishing fleet.

That financing for the project went missing, however. A coordinated global investigation involving the U.S. Securities and Exchange Commission, the U.K. Financial Conduct Authority, and Switzerland’s Financial Market Supervisory Authority ultimately found that Credit Suisse was involved in hiding key facts that showed loan proceeds were used for illegal purposes. The bank was ultimately fined USD 475 million (EUR 452 million) for its involvement in the scandal, and later agreed to pay USD 22.6 million (EUR 21.5 million) in restitution to 18 investors who were defrauded. 

The scandal, and the missing money, contributed to the collapse of country’s currency and turmoil after the International Monetary Fund and other lenders temporarily halted their financial support of the country's government.

Adding another layer of complication to the ongoing case, Privinvest secured permission to appeal a recent London High Court decision that found Mozambique President Filipe Nyusi cannot be sued over allegations he accepted unlawful payments during the multi-year scandal. Privinvest and its owner Iskandar Safa have repeatedly tried to ... 

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