Mozambique 'substantially' wins massive UK lawsuit in tuna bond scandal

Mozambique yesterday "substantially" won its US$3.1 billion lawsuit at London's High Court against Emirati-Lebanese shipbuilder Privinvest for allegedly paying bribes in relation to the decade-old 'tuna bond' scandal.

The African republic sued Privinvest and its now late owner Iskandar Safa, alleging they paid bribes to Mozambican officials and Credit Suisse bankers.

Mozambique said more than US$136 million was paid to secure favourable terms on three projects in 2013 and 2014, including one designed to exploit the republic's tuna-rich coastal waters.

Privinvest and Safa, however, denied any wrongdoing and said any payments were lawful. Their lawyers argued the case was a politically-motivated attack to deflect blame from Mozambican president Filipe Nyusi and other senior officials.

Judge Robin Knowles yesterday said he had ruled "substantially in favour" of Mozambique.

In his written ruling, the judge said Mozambique is "entitled as against Mr Safa and the Privinvest companies" to payment of just over US$825 million.

Knowles also ruled that Mozambique is entitled to an indemnity in respect of payments of around US$1.5 billion that it is liable to pay, including around US$1.4 billion it is liable to pay to bondholders until 2031.

- Reuters