>>22358458
>>22358474
“Mozambique’s Hidden Debt Scandal”
https://corruption-tracker.org/case/mozambique-hidden-debt-scandal
Published on
October 18, 2022
(updated August 13, 2024)
In 2011, Abu Dhabi Mar, a company of the Privinvest Group, proposed a project for securing Mozambique’s Exclusive Economic Zone (EEZ, the first 200 sea miles off the coast) to the President of Mozambique. Three Mozambican firms, ProIndicus, Empresa Moçambicana de Atum (Ematum), Mozambique Asset Management (MAM), received USD $2 billion loans (given by Credit Suisse and VTB Capital on signature of the Mozambican Finance Minister) for a shared shipbuilding, fishing and maritime surveillance project from the government in 2014. Parliament was expected to guarantee the sum, but it was never consulted. Instead, a staggering USD $1.65 billion was funnelled into military and naval equipment from Privinvest, supposedly for the project’s development. What was meant to purchase fishing vessels appears to have been diverted to finance weapons instead. As a result, the project never materialised, nor did it fulfill its capabilities to “develop” the fishery within the EEZ as advertised.
Seller country
France
Seller company
Privinvest Shipbuilding SAL (Holding) (PSAL), Privinvest Shipbuilding Investments LLC (PISB), Abu Dhabi Mar Investments LLC (ADM), Constructions Mécaniques de Normandie (CMN), Logistics International SAL (Offshore), Logistics International Investments LLC
Buyer country
Mozambique
Goods category
Aircraft, Surveillance Equipment, Warships, Intellectual Property Rights, Drones
Equipment sold
ProIndicus Project (provider: PSAL, transformed into PISB) - 16 radar stations (6 manned, 10 unmanned) - 36 DV15 interceptor vessels - 3 WP18 strike-craft vessels - 3 HSI32 offshore patrol vessels - 6 Remos GX light maritime patrol aircraft - central command and control site, training centre - satellite surveillance system - training & maintenance of all above
EMATUM Project (provider ADM) - 3 Ocean Eagle 43 Trimaran patrol vessels - and their associated camcopter drones - equipment for land operations centre - training and spare parts for the above
MAM Project (provider PISB) - maintenance, repair and assembling sites for vessels of ProIndicus & EMATUM deals. - vessel components to be delivered by PISB
Deal value
(2 billion US$ loan to 3 Mozambican firms -debt scandal) 1,651 million US$ of which to Privinvest -> arms deal part
Sum involved in corruption
USD 713 million overbilling (whole debt scandal within the three firms, see Kroll report) 200 million US$ bribes by Privinvest towards Mozambican officials (including campaign donations to president's party) and Credit Suisse bankers (who pleaded guilty over ~USD 50 million bribes) + offsets (real estate, a new maritime agency, a diamond mine, a TV station, a bank and a prepaid mobile phone card business), payments to Mozambique’s ruling party, payments to politically exposed persons
Start year
2013
Outcome status
Trial Closed - Some Convictions, Out of Court Settlement
Actors
• Filipe Nyusi: current President of Mozambique, Defence Minister during time of alleged corruption
• Armando Emilio Guebuza: Mozambican President at the time
• Manuel Chang: Mozambican Finance Minister at the time
• Iskandar Safa: head of Privinvest
• Andrew Pearse, Detelina Subeva, Surjan Singh: Swiss bankers who pleaded guilty on receiving bribes
• Jean Boustani: Chief Trader at Privinvest
• Antonio do Rosario: Managing Director of MAM, Pro Indicus, Ematum, Director of Economic Intelligence at SISE (Mozambique’s Security and Intelligence Service)
• Pro Indicus: Mozambique state-owned company, defence and security company to protect the Mozambican EEZ at sea, in liquidation process
• MAM Mozambique Asset Management: Mozambique state-owned company, should offer maritime repairs, in liquidation process
• Ematum: Mozambique partly state-owned company, fishing processing and selling of tuna, in liquidation process