Mozambique: London court assesses mistrial in hidden debts case

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Mozambique: London court assesses mistrial in hidden debts case

8:32 CAT | 13 Jun 2023

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On Tuesday, London’s Commercial Court began considering an application by Credit Suisse bank to quash the trial on Mozambique’s hidden debts due to a failure to disclose documentary evidence.

“The Republic [of Mozambique] remains in breach of disclosure duties,” lawyer Andrew Scott said this morning, pointing to the small number of official documents facilitated.

The Credit Suisse representative asked whether there was a lack of will “at the highest level,” namely from the President of Mozambique, Filipe Nyusi, as the person with the greatest authority in the country, but also subject to allegations in this process.

The arguments for a mistrial will continue for three days, with a decision to be taken at a later date.

In March, Judge Robin Knowles warned that he would not rule out a mistrial, stressing that the disclosure of documentary evidence is essential to ensure a fair trial.

The issue is crucial at a time when there are four months to go before the 3 October start of the trial that is scheduled to last three months.

The disclosure of documentary evidence, in this case, has been done in stages, and the deadlines were often lengthened due to the complexity of the case and the need for translation.

The main problem has been access to documents from the various state entities, officials and public office holders who are the subject of allegations in the case.

The five entities are the President’s Office, the Prime Minister’s office, the State Intelligence and Security Service (SISE), the Council of State and the Ministry of the Interior.

Judge Robin Knowles criticised in March the lack of access by British lawyers defending Mozambique’s Attorney General’s Office (PGR) to official documents to assist in the selection, whether those classified as a state secret or of restricted consultation.

The magistrate also disapproved of the fact that not even the Attorney General’s Office was not authorised to examine documents from SISE, the Council of State and the Office of the President of the Republic, a decision that falls to the head of government or the head of state.

The London Commercial Court is scheduled to begin trial on 3 October on the lawsuit filed by Mozambique’s attorney general’s office in 2019 to try to write off a $622 million debt owed by state-owned company ProIndicus to bank Credit Suisse, claiming it resulted from corruption.

The loan was guaranteed by the government of Mozambique, at a time when Armando Guebuza was head of state, without the knowledge of Parliament or the Administrative Tribunal.

The funding was intended for the acquisition of tuna fishing boats and maritime security equipment and services provided by the companies of the naval group Privinvest.

The case, disclosed in 2016 and which became known as “hidden debts”, involves contracts and loans of around US$2.2 billion (about €2 billion) with banks Credit Suisse and VTB between 2013 and 2014 on behalf of Mozambican state companies Proindicus, Ematum and MAM.

Filipe Nyusi was defence minister when the contracts were signed.

Source: Lusa