Credit Suisse has reached an out-of-court settlement with Mozambique in the long-standing $1.5 billion “tuna bond” scandal. The settlement brings an end to a major legal dispute that was inherited by UBS, the new owner of Credit Suisse. The deal was struck just one day before a three-month London civil trial was scheduled to begin.
As part of the agreement, UBS will forgive a portion of the loan that Credit Suisse had made to Mozambique in 2013. This settlement also includes most of the creditors who were involved in funding a 2013 loan to ProIndicus, a state-owned Mozambican company.
The tuna bond case traces its roots back to the deals between state-owned Mozambican companies and shipbuilder Privinvest. Mozambique had alleged that Privinvest paid bribes to corrupt Mozambican officials as well as Credit Suisse bankers.
While Credit Suisse has resolved its part in the scandal, French shipping mogul Iskandar Safa and Privinvest remain key defendants in the ongoing High Court battle. Privinvest has vigorously defended itself, arguing that it fulfilled all obligations under the contracts and any payments made were legitimate.
In a separate development, Privinvest has been granted permission to appeal against a decision that granted Mozambican President Filipe Nyusi immunity from the proceedings. This signifies another twist in the complex legal proceedings surrounding the tuna bond scandal.
This settlement comes on the heels of Credit Suisse’s agreement to pay approximately $475 million to British and U.S. authorities earlier this year to settle charges of bribery and fraud. It is a significant step for the bank in resolving legal issues and moving forward.
The resolution of the “tuna bond” scandal brings some closure to a decade-old saga that has brought Mozambique’s financial practices and international banks under intense scrutiny. As the settlement is finalized, it remains to be seen how this will affect the parties involved and what implications it will have for future financial dealings in the country.
“Prone to fits of apathy. Devoted music geek. Troublemaker. Typical analyst. Alcohol practitioner. Food junkie. Passionate tv fan. Web expert.”