THE London High Court has denied shipbuilder Privinvest permission to appeal against Mozambique’s victory in a landmark case over the infamous ‘tuna bond’ scandal. The ruling upholds a judgment awarding Mozambique more than $825 million in damages and an indemnity covering $1.5bn in state liabilities, less $420 million already recovered.
Bribery allegations and financial fallout
Mozambique accused Privinvest and its late owner, Iskandar Safa, of paying bribes to Mozambican officials and Credit Suisse bankers to secure favourable terms for three projects in 2013 and 2014. The projects, which included fishing boats and maritime security initiatives, were supported by undisclosed state guarantees.
However, hundreds of millions of dollars vanished, triggering a financial crisis in 2016 when the secret debts were exposed. International donors, including the IMF, withdrew support, sparking a currency collapse, loan defaults, and widespread economic instability.
Privinvest’s legal options narrow
While the High Court has blocked Privinvest’s appeal, the company may still petition the Court of Appeal directly. Privinvest’s lawyer confirmed their intent to pursue this option.
Global repercussions of the scandal
Mozambique’s case also involved Credit Suisse, which was taken over by UBS earlier this year. The bank reached a last-minute settlement with Mozambique in October and a separate deal with Privinvest, effectively closing its involvement in the scandal.
This case highlights the profound impact of financial mismanagement and corruption, as Mozambique continues to grapple with the long-term fallout of the $2bn debt crisis. For now, the High Court’s decision marks another step toward accountability in one of Africa’s most notorious financial scandals.
