MOZAMBIQUE has prevailed in a $3.1 billion lawsuit against Privinvest, an Emirati-Lebanese shipbuilder, in London’s High Court. The case centred on alleged bribery related to the “tuna bond” scandal from a decade ago.
Judge Robin Knowles ruled in favour of Mozambique, stating the country had been exploited by sophisticated institutions that should have known better. The judge ordered Privinvest and its late owner Iskandar Safa to pay Mozambique about $825 million, plus indemnity for $1.5 billion owed to lenders and bondholders, minus $420 million already recovered.
The case involved state-backed deals with Privinvest for maritime projects, financed by loans and bonds from banks including Credit Suisse. When the undisclosed government debt was revealed in 2016, it triggered financial turmoil in Mozambique.
While critical of Mozambican officials, Judge Knowles found that Privinvest and Safa paid bribes to then-Finance Minister Manuel Chang. Privinvest denied wrongdoing and plans to appeal certain aspects of the ruling.
The scandal has sparked criminal investigations internationally, with Chang currently on trial in New York.
