Mozambique will take on ‘tuna bond’ case against Privinvest
The tuna bond case dates back to deals between state-owned Mozambican firms and shipbuilder Privinvest, to develop the fishing industry
02 October 2023 - 13:59
byManuel Mucari and Kirstin Ridley
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Traditional fishing boats sail as Mozambique's tuna fleet sits in dock in Maputo, Mozambique. GRANT LEE NEUENBURG/REUTERS
Maputo — Mozambique will pursue compensation from shipbuilder Privinvest in a London court, officials said on Monday, after Credit Suisse reached an 11th-hour out-of-court settlement on Sunday with the country over a decade-old $1.5bn-plus “tuna bond” scandal.
The deal with Credit Suisse parent UBS only covers a 2013 loan to Proindicus, a state-owned Mozambican company, and “other processes will not be prejudiced by the agreement”, Mozambique finance minister Max Tonela told a media conference.
The tuna bond case dates back to deals between state-owned Mozambican companies and shipbuilder Privinvest — funded in part by loans and bonds from Credit Suisse and backed by undisclosed Mozambican government guarantees in 2013 and 2014 — ostensibly to develop the fishing industry and for maritime security.
But hundreds of millions of dollars went missing and, when the government debt came to light in 2016, donors such as the International Monetary Fund temporarily halted support, triggering a currency collapse, defaults and financial turmoil.
“This agreement opens room to restore the confidence of international investors in Mozambique,” Tonela said.
The deal includes “the extinguishment of the total amount of debt that Credit Suisse claimed from Mozambique”, said a statement posted after the media conference on the Facebook page of Mozambique’s attorney-general.
Under the deal, UBS will forgive part of a loan that Credit Suisse made to Mozambique in 2013, representing less than $100m, said one source familiar with the situation, who declined to be named because the terms were not public. UBS acquired smaller rival Credit Suisse earlier in 2023.
Tonela and deputy attorney-general Angelo Matusse also declined to say how much compensation Mozambique was pursuing from Emirati-Lebanese shipbuilder Privinvest.
Privinvest alleges it delivered on its contractual obligations and any payments made were investments, consultancy payments, legitimate remuneration or political campaign contributions.
The Mozambican government is paying law firm Peters & Peters £3.5m a month, with legal fees totalling $80m since 2019, Matusse said.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Mozambique will take on ‘tuna bond’ case against Privinvest
The tuna bond case dates back to deals between state-owned Mozambican firms and shipbuilder Privinvest, to develop the fishing industry
Maputo — Mozambique will pursue compensation from shipbuilder Privinvest in a London court, officials said on Monday, after Credit Suisse reached an 11th-hour out-of-court settlement on Sunday with the country over a decade-old $1.5bn-plus “tuna bond” scandal.
The deal with Credit Suisse parent UBS only covers a 2013 loan to Proindicus, a state-owned Mozambican company, and “other processes will not be prejudiced by the agreement”, Mozambique finance minister Max Tonela told a media conference.
The tuna bond case dates back to deals between state-owned Mozambican companies and shipbuilder Privinvest — funded in part by loans and bonds from Credit Suisse and backed by undisclosed Mozambican government guarantees in 2013 and 2014 — ostensibly to develop the fishing industry and for maritime security.
But hundreds of millions of dollars went missing and, when the government debt came to light in 2016, donors such as the International Monetary Fund temporarily halted support, triggering a currency collapse, defaults and financial turmoil.
“This agreement opens room to restore the confidence of international investors in Mozambique,” Tonela said.
The deal includes “the extinguishment of the total amount of debt that Credit Suisse claimed from Mozambique”, said a statement posted after the media conference on the Facebook page of Mozambique’s attorney-general.
Under the deal, UBS will forgive part of a loan that Credit Suisse made to Mozambique in 2013, representing less than $100m, said one source familiar with the situation, who declined to be named because the terms were not public. UBS acquired smaller rival Credit Suisse earlier in 2023.
Tonela and deputy attorney-general Angelo Matusse also declined to say how much compensation Mozambique was pursuing from Emirati-Lebanese shipbuilder Privinvest.
Privinvest alleges it delivered on its contractual obligations and any payments made were investments, consultancy payments, legitimate remuneration or political campaign contributions.
The Mozambican government is paying law firm Peters & Peters £3.5m a month, with legal fees totalling $80m since 2019, Matusse said.
Reuters
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