UBS reached a last-minute agreement with the government of Mozambique on behalf of Credit Suisse. In London, where the trial over the financial scandal began late, there was still a dispute afterward.
Confusion in London: The court took a forced break in the long-announced trial over the Mozambique affair. As the online portal «Law360» (behind paywall) reports, the judge wants to examine Mozambique's submissions on possible claims.
To that end, he asked the African country's representatives yesterday evening to review their opening arguments to determine whether any disputes cross the boundaries of what is and isn't settled.
Postponed Again
The trial was supposed to begin in early October. Still, it was postponed for two weeks after the African country and UBS reached a last-minute settlement over Credit Suisse's involvement in that billion-dollar scandal. It now starts today.
The postponed opening of the trial of the other defendants, including a French-Lebanese billionaire and his shipbuilding company Privinvest, was scheduled to begin last Monday as well.
Major Disagreements
UBS and the government of Mozambique settled the legal dispute at the last minute in early October, as finews.com also reported. Both parties mutually released each other from all obligations and claims related to the loans and bonds arranged for the country in 2013, UBS said. However, Mozambique is still suing Privinvest, the boats and other equipment supplier.
As the online portal specializing in legal cases further writes, behind-the-scenes talks last week revealed deep disagreements and mistrust between the parties. Although Mozambique indemnified Credit Suisse against any liability, it sought to accuse the bank of involvement in an illegal conspiracy involving, among other things, the arrangement of bribes and kickbacks in return for government-subsidized contracts for large infrastructure projects.
The court reportedly disallowed these new allegations in light of the settlement already reached with UBS. Specifically, the judge ruled Monday that Mozambique may rely on factual matters, but it can't assert those facts to make out claims against Credit Suisse.
Breach of Settlement?
A lawyer representing Credit Suisse argued, according to «Law360,» the allegations violated the settlement agreement, which not only exempted the bank from liability but also prevented the African country from claiming that its former bankers had engaged in bribery and corruption.
Although UBS settled the case, it faces claims due to counterclaims by Abu Dhabi-based shipbuilder Privinvest over its alleged role in the scandal over a decade ago, the statement added.
However, according to the settlement, the African country can't support Privinvest. The lawyer said that Mozambique is in breach of the settlement agreement if it investigates the bank's role with Privinvest.
