Privinvest indulges in delaying tactics, serving a notification on Nyusi and others – AIM

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Privinvest indulges in delaying tactics, serving a notification on Nyusi and others – AIM

8:05 CAT | 03 Jun 2021

in file CoM

The Mozambican Attorney General’s Office (PGR) has confirmed to the independent television station, STV, that a London court has indeed allowed the Abu-Dhabi based company, Privinvest, to serve a notification on President Filipe Nyusi, in connection with the legal battle in London between Privinvest and the Mozambican state.

The case arises out of the scandal of Mozambique’s “hidden debts” – a term which refers to the loans, in 2013 and 2014, of over two billion US dollars granted by the banks Credit Suisse and VTB of Russia to three fraudulent, security-linked Mozambican companies, Proindicus, Ematum (Mozambique Tuna Company) and MAM (Mozambique Asset Management).

The negotiations leading up to the loans involved at least three corrupt officials from Credit Suisse, who have admitted to taking bribes, and Privinvest officials, notably Jean Boustani. Between them, they ensured that the Mozambican government of the day, led by the then President Armando Guebuza, issued illegal loan guarantees, covering the entire two billion dollars.

The effect of the guarantees was that, if the companies defaulted (as they have done), then the Mozambican government would be held liable for repaying the loans. But the guarantees violated the budget laws of 2013 and 2014 and the Mozambican constitution. The loans and their guarantees have been declared unconstitutional by the Constitutional Council, Mozambique’s highest body in matters of constitutional law.

The man who signed the loan guarantees was the then Finance Minister, Manuel Chang. He is currently languishing in a South African prison, while the South African Justice Minister, Ronald Lamola, decides whether he should be extradited to Mozambique or to the United States.

Privinvest sat at the heart of a network of corruption. According to US prosecutors investigating the case, Privinvest used at least 200 million dollars of the loan money for bribes and kickbacks. Among those who took money from Privinvest were Chang, and the three Credit Suisse bankers Andrew Pearse, Surjan Singh and Detelina Subeva.

Privinvest admits to making payments to Mozambican officials, including a million dollars to Nyusi himself, but denies that they were bribes. It describes them by more polite terms, such as campaign contributions. This would be more convincing had the payments been announced at the time, in 2014, rather than at the New York trial of Jean Boustani in late 2019.

Nyusi has not commented on the Privinvest allegation.

Privinvest has also notified Guebuza, Chang, Guebuza’s oldest son Ndambi Guebuza, the head of the intelligence service (SISE) under Guebuza, Gregorio Leao, and the SISE official who became the chairperson of all three fraudulent companies, Antonio do Rosario.

The Mozambican Attorney-General’s Office (PGR) began proceedings in London in 2019 against five companies in the Privinvest group, and the owner of the group, the Lebanese billionaire Iskandar Safa. It is also suing Credit Suisse, Pearse, Subeva and Singh.

The key demand from the PGR is that the London court should declare null and void the government guarantee on the 622 million dollar loan arranged by Credit Suisse for ProIndicus, on the grounds that this debt, along with the rest of the loans were part of a gigantic fraud. The PGR is also demanding compensation for the losses caused to Mozambique by the corrupt scheme.

The latest development is that a document from the London High Court, dated 21 May, authorizes Privinvest to serve a legal document known as “Part 20 Claim Form” and any additional claims on Nyusi. Nyusi is not accused of any crime at all, and it is hard to see how the London court can force a sitting head of state to give evidence.

Nor is it at all likely that the South African authorities will allow Chang to leave prison to attend a court hearing in London. Likewise, Rosario, Leao, and Ndambi Guebuza are in prison in Mozambique awaiting trial.

None of those whom Privinest wants to notify were present at the hearing where the Court made its order, and any or all of them may apply to have the order set aside.

The Privinvest tactic seems to be to embarrass the Mozambican government into dropping its case in London, or to make spurious demands that string out the case indefinitely.

The PGR, as the legal representative of the state, will doubtless discuss the matter with Nyusi’s office. So far it has not said what steps, if any, it plans to take.

Source: AIM