London court orders Privinvest to pay Mozambique nearly $2 Billion in hidden debts case
In a landmark decision today, the London Commercial Court ruled in favour of Mozambique in the notorious "hidden debts" scandal, ordering the naval group Privinvest to compensate the Mozambican state due to corruption involving former Finance Minister Manuel Chang.
Presiding Judge Robin Knowles dismissed testimonies from the group's owner, Iskandar Safa (who passed away last January), and Privinvest negotiator Jean Boustani, who both claimed that Privinvest did not engage in bribery.
"I am convinced that Mr. Safa and the Privinvest Group were willing to promise or pay whoever necessary, specifically Minister Chang (...). And that is exactly what they did," the ruling stated, released today.
Mozambique’s Attorney General's Office (PGR) announced in a statement that the court ordered the Privinvest naval group to pay approximately $1.9 billion, plus interest.
"This amount reflects what the State has already paid under the guarantees, including principal, interest, and Eurobond fees, following the assumption of EMATUM, as well as the settlement agreements that the Republic reached, initially with Credit Suisse and other banks and financial institutions, and more recently with VTBC and BCP," the PGR statement elaborated.
The statement further indicated that Privinvest has also been ordered to pay interest to be quantified, estimated to be in the millions of US dollars.
At present, the Attorney General's Office asserted that the Mozambican state is continuing efforts to secure reimbursement of all legal expenses incurred during the case, including court costs.
