"UK Top Court Allows Mozambique New Trial in “Tuna Bonds” Affair", 26 Sept 2023

The Supreme Court of the United Kingdom ruled Wednesday that Mozambique may proceed with its case against shipbuilder Privinvest and others in a so-called “tuna bond” corruption scandal, with a public trial set to begin in early October.

Mozambican state-owned companies had taken $2 billion in bank loans from Credit Suisse and the Russian bank VTB to finance development projects in the tuna fishing industry and maritime security.

The hidden loans received the backing of Mozambique government guarantees, which had not been approved by parliament. This means that if the companies do not pay back, the state has to.

Half a billion of the borrowed sum allegedly went missing, and about $200 million were allegedly diverted into bribes and kickbacks.

In 2017, Mozambique defaulted on the loans, plunging one of the world's most indebted countries into a financial crisis...

The tuna bond scandal led to a series of lawsuits in London, New York, and South Africa involving Mozambique's former finance minister, Manuel Chang, executives of the state-owned companies, several Credit Suisse executives, and Lebanese shipping company Privinvest...

The ruling also states that Privinvest admitted that certain payments were made, but denied that they were bribes or that the company was involved in any conspiracy...

In 2021, Credit Suisse agreed to pay $475 million to U.S. and U.K. authorities to settle bribery and fraud accusations...

According to a report released by Mozambique’s Center for Public Integrity, the scandal’s consequences caused at least 1.9 million of its people to slip below the consumption-based poverty by 2019 – the biggest number in the country’s history...