Mozambique: Privinvest accuses state lawyers of erasing references to president

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Mozambique: Privinvest accuses state lawyers of erasing references to president

5:20 CAT | 20 Oct 2023

in file CoM

Privinvest, an international shipbuilding group at the centre of the Mozambique “hidden loans” scandal, on Thursday accused lawyers representing the state in a civil case being heard at London’s Commercial Court of excluding references to the current head of state, Filipe Nyusi, from the allegations of corruption.

Duncan Matthews, a lawyer for the shipping group and its founder and owner, Iskandar Safa, said that the legal team representing the Mozambique Attorney General’s Office (PGR) had behaved “almost like Harry Potter” in making the president’s name disappear.

“His name was simply erased” from the file, Matthews joked, during the presentation on Thursday of the defence case against the corruption charges brought against Privinvest by the PGR.

Privinvest and Safa are accused of having bribed state officials to approve contracts and the financing of loans to three state-owned companies (Proindicus, EMATUM and MAM), supposedly for the purchase from Privinvest of fishing boats and maritime security equipment.

Among those identified by the PGR as having accepted bribes are Manuel Chang, the then finance minister, Ndambi Guebuza, the eldest son of the then president, Armando Guebuza, his alleged colleagues in the enterprise Teófilo Nhangumele and Bruno Langa, as wlel as Renato Matusse, a former advisor to President Guebuza, Isaltina Lucas, the then director of the National Treasury, and two former heads of the State Intelligence and Security Services (SISE), Gregório Leão and António Carlos do Rosário.

Privinvest and Safa are also accused by the Mozambique PGR of bribing officials from Credit Suisse and VTB banks to facilitate transactions on more favourable terms.

On Tuesday, Mozambique’s lawyers revealed that they are seeking $3.1 billion (€2.9 billion at the current exchange rate) in compensation to cover costs and other financial commitments.

Privinvest claims that it fulfilled its contractual obligations and that the payments made to the people concerned were investments, payments for services, and contributions to political campaigns.

Matthews recalled that Nyusi, now Mozambique’s president, was minister of defence at the time of the planning and negotiation of the project contracts and so “is at the centre of this whole affair” and lamented the president’s unwillingness to testify.

Nyusi invoked diplomatic immunity in declining to proffer information, but Privinvest still intends to appeal the decision of the High Court in London to allow this.

Matthews emphasised in his submission to the court on Thursday that Privinvest rejects the idea that the sale of vessels and maritime security equipment was a “fraudulent scheme of no benefit to Mozambique.”

Privinvest maintains that the initial plan of the authorities in the African country was to protect its Exclusive Economic Zone (EEZ), exploit fishing resources and develop shipbuilding and repair capacity to generate economic income.

Instead, Matthews blamed the then defence minister, Nyusi, and other politicians of the time for “failing to make the project work, to be honest with the international community” and for “turning against the people who tried to make the projects possible.”

The “hidden debts” case dates back to 2013 and 2014, when Chang approved state guarantees on loans contracted by Proinducus, Ematus and MAM from Credit Suisse and VTB, without the knowledge of parliament and other state authorities and creditors.

The debts, whose existence emerged in 2016, are estimated at around $2.7 billion (€2.55 billion), according to the indictment filed by the Mozambique PGR.

The scandal prompted the International Monetary Fund and other international donors to suspend their support.

The start of the trial in London’s Commercial Court was postponed for a fortnight following an agreement between Mozambique and the UBS banking group, which owns Credit Suisse, and other financial institutions.

The trial is expected to continue until the end of December.

Source: Lusa