Mozambique’s President Filipe Nyusi is fighting to keep his immunity in a London court, where he is being sued by a shipbuilding company at the center of a massive corruption scandal.
The company, Privinvest, claims that Nyusi received $11 million in unlawful campaign payments from them in exchange for favorable terms in a $3.1-billion deal involving three maritime projects, including one to develop the country’s tuna fishing industry.
The deal dubbed the “tuna bond” scandal, plunged Mozambique into a debt crisis and triggered investigations and arrests in several countries, including the US and Switzerland.
Privinvest says the payments to Nyusi were lawful and that he should share the responsibility for any damages it may have to pay to Mozambique, which is suing the company and others for fraud and bribery.
Nyusi, who was re-elected in 2024, denies any wrongdoing and argues that he has immunity as a head of state. He also says he was not properly served with the lawsuit, which was left at his presidential palace in 2021. A London appeals court heard arguments from both sides on Wednesday and is expected to issue a ruling soon.
A political motive?
Mozambique’s lawsuit, which was filed in 2023, is part of its efforts to recover the money it lost in the scandal and to hold those involved accountable.
The country alleges that Privinvest and its late owner, Iskandar Safa, who died in January, paid bribes to Mozambican officials and Credit Suisse bankers to secure the deal, which was financed by loans from Credit Suisse and Russia’s VTB Bank.
The loans were guaranteed by the Mozambican government but were not disclosed to parliament or donors, violating the country’s laws and constitution.
When the scandal came to light in 2016, donors suspended their aid to Mozambique, triggering a currency collapse and a debt default.
The country has since reached a restructuring agreement with most of its creditors but is still seeking compensation from those it accuses of fraud. Privinvest and Safa’s estate deny the allegations and say the lawsuit is politically motivated.
They say the projects, which also included coastal surveillance and ship repair facilities, were legitimate and beneficial for Mozambique, and that the country is trying to avoid its contractual obligations.
A global fallout
The scandal has had repercussions beyond Mozambique’s borders, as authorities in several countries have launched investigations and prosecutions against some of the key players.
In the US, three former Credit Suisse bankers, a Privinvest executive, and a former Mozambican finance minister have pleaded guilty to various charges related to the scheme. They are awaiting sentencing, while another former Mozambican minister is fighting extradition from South Africa.
In Switzerland, the attorney general’s office has opened a criminal probe into the role of Credit Suisse and its employees, as well as Privinvest and Safa. In the UK, the Serious Fraud Office has also been investigating the case but has not announced any charges so far.
Meanwhile, in Mozambique, the trial of 19 defendants, including former state security officials, bankers and businessmen, is ongoing. They are accused of abuse of power, embezzlement, money laundering, and blackmail, among other crimes.
The trial, which began in 2021, has been marred by delays, irregularities, and allegations of political interference.
A hope for justice
The outcome of the London lawsuit could have significant implications for Mozambique and its people, who have suffered the consequences of the scandal.
The country, which is one of the poorest in the world, is still struggling to recover from the economic and social impact of the debt crisis, as well as the effects of climate change, armed conflict, and the COVID-19 pandemic.
Many Mozambicans hope that the legal actions in different countries will bring justice and accountability, and deter future corruption.
They also hope that the country’s vast natural gas reserves, which are expected to start production in 2025, will be managed transparently and equitably, and will bring development and prosperity to the nation.
Source: ReutersÂ
