With Credit Suisse's reputation reeling from the Archegos and Greensill debacles, the «Financial Times» now reports it is facing a trial over its role in a $2-billion bond scandal involving Mozambique.
Credit Suisse will face a 13-week trial in September 2023 over its role in Mozambique’s «Tuna Bonds» scandal, the «Financial Times» (behind paywall) reported Tuesday, citing people familiar with the matter. The FT said Credit Suisse declined to comment.
Loans meant to build a tuna-fishing fleet, patrol boats, and a dockyard, for example, were diverted to buy military equipment instead.
Major Crisis
The scandal in Mozambique created a major crisis for the country because the loans were not revealed to other creditors and the International Monetary Fund. In 2019, Andrew Pearse, the London-based former head of global financing at the Swiss bank, as well as former Credit Suisse bankers Detelina Subeva and Surjan Singh pleaded guilty to charges brought in the U.S. over receiving bribes in connection with the bonds.
Credit Suisse has always said the three hid their dealings from the bank’s management.
High Court in London
The FT said the case to be heard at the High Court in London was brought by investors accounting for $622 million of the $2 billion in loans, including Banco Comercial Português and United Bank for Africa against Credit Suisse, Mozambique and a state-owned company that received the funding.
