MOZAMBIQUE can sue shipbuilder Privinvest in Britain for alleged bribery connected to the $2bn ‘tuna bond’ scandal, the United Kingdom’s Supreme Court ruled on Wednesday, just weeks before a blockbuster trial begins in London.
The republic is suing Privinvest, its owner Iskandar Safa, Credit Suisse and others at London’s High Court over government-guaranteed loans raised in 2013 and 2014, hundreds of millions of dollars of which went missing.
Mozambique claims it is the victim of a conspiracy involving Privinvest and Safa, whom it accuses of paying more than $130 million in bribes to corrupt officials and Credit Suisse employees.
Privinvest denies paying any bribes, saying that the payments were legitimate payments, investments or political campaign contributions.
Privinvest had argued that any dispute with Mozambique must be addressed by arbitration. In 2021, the Court of Appeal ruled in the company’s favour, in a blow to Mozambique’s efforts to recoup the money it says it lost.
But the Supreme Court unanimously allowed Mozambique’s appeal against that ruling on Wednesday, meaning the republic’s claims against Privinvest will be heard in a months-long trial due to start on October 3.
Mozambique’s Attorney General’s Office declined to comment on Wednesday’s ruling. Privinvest did not immediately reply to a request for comment.
The tuna bond or ‘hidden debt’ case has triggered criminal investigations from Maputo to New York, plus a series of linked lawsuits.
The case dates back to three deals between state-owned Mozambican companies and Privinvest – funded in part by loans and bonds from Credit Suisse and backed by undisclosed Mozambican government guarantees – ostensibly to develop the fishing industry and for maritime security.
Mozambique, one of the world’s poorest countries, wants to revoke a sovereign guarantee on a loan it alleges was corruptly procured and secure compensation for other alleged wrongdoing.
But the cases in London have been mired in difficulties as Mozambique’s repeated failure to disclose key documents has threatened to derail the litigation.
Privinvest and Safa have also unsuccessfully tried to draw Mozambican President Filipe Nyusi into the case, over $11 million they say Privinvest paid to fund Nyusi’s successful run for president and his ruling Frelimo party’s election campaign.
However, the High Court ruled this month that Nyusi has state immunity as the sitting president of Mozambique.
