Mozambique has won a significant legal victory in its $3.1 billion lawsuit against Emirati-Lebanese shipbuilder Privinvest at London’s High Court.
The court ruled largely in favor of Mozambique, which had accused Privinvest and its late owner, Iskandar Safa, of bribing officials and bankers to secure favorable terms for projects, including a controversial tuna bond scheme from 2013-2014.
Judge Robin Knowles ordered Privinvest and Safa to pay Mozambique over $825 million, plus cover a portion of Mozambique’s $1.5 billion debt to lenders and bondholders.
The lawsuit revealed that the debt led to a currency collapse and financial turmoil after the scandal surfaced in 2016.
The case, involving undisclosed state guarantees and flawed financial deals, saw Credit Suisse settle with Mozambique before the trial, but litigation against Privinvest continued. Privinvest and Safa, who deny wrongdoing and plan to appeal, were found to have bribed officials, including former Finance Minister Manuel Chang.
Mozambique’s Attorney General vowed to continue combating corruption, while Privinvest criticized the ruling as unfair. The case remains under criminal investigation internationally.
