‘Hidden debts’ | Mozambique: London trial opening arguments start Tuesday

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‘Hidden debts’ | Mozambique: London trial opening arguments start Tuesday

9:23 CAT | 16 Oct 2023

File photo: AIM

The trial in Mozambique’s “hidden debts” case is expected to begin in London on Tuesday with opening arguments, after a delay due to issues raised today by parties involved.

READ: London trial delayed until at least Oct. 16 as Mozambique switches focus to Privinvest in ‘tuna bond’ case

Credit Suisse criticized the legal team representing the Attorney General’s Office (PGR) of Mozambique for continuing to involve the Swiss bank in a conspiracy to corrupt senior Mozambican public officials, despite reaching an agreement two weeks ago to drop all the allegations.

The agreement, reached with the UBS group, owner of Credit Suisse, determines, according to the PGR, that “the parties are mutually free from any liabilities and claims related to the transactions, including the extinguishment of the total amount of debt that Credit Suisse claimed Mozambique”.

However, Credit Suisse remains potentially liable if it is proven that Privinvest bribed the bank’s three former employees, Andrew Pearse, Surjan Singh and Detelina Subeva, to facilitate loans granted to Mozambican state-owned companies.

Lawyer Laurence Rabinowitz argued that, by “continuing with the current allegations, [Mozambique] will help Privinvest” implicate Credit Suisse, suggesting that it stop mentioning the bank in its allegations against Privinvest.

“We are not suggesting that they should drop allegations, but it all depends on how they proceed”, Rabinowitz stressed.

READ: Credit Suisse, Mozambique secure out-of-court ‘tuna bond’ settlement

Just In: Mozambique confirms ‘equitable’ out-of-court settlement with Credit Suisse – report

PGR lawyer Joe Smouha said the agreement is clear in the sense that Mozambique’s allegations against Privinvest and owner Iskandar Safa continue, even if Credit Suisse becomes subject to Privinvest’s allegations.

Mozambique “will try to prove that Credit Suisse and the Credit Suisse negotiating team were involved in the conspiracy” to bribe, Smouha admitted, but stressed that “the allegations are against Mr Safa and Privinvest”.

In the end, judge Robin Knowles ruled that the lawyers representing the PGR of Mozambique must specify the “material facts” of their allegations in the opening arguments, now scheduled for Tuesday, refusing to further delay the start of the trial, which should have started on October 2nd.

READ: Mozambique drops key claim for damages from shipping tycoon – Bloomberg

Mozambique drops part of “tuna bonds” claim against shipbuilder Privinvest

Mozambique gains $500mn+ secret debt cancellation – By Joseph Hanlon

Source: Lusa