Mozambique has dropped a significant part of its claim against Emirati-Lebanese shipbuilder Privinvest over the decade-old “tuna bond” scandal, just days after settling its case against Credit Suisse, London’s High Court heard on Thursday.
Mozambique’s lawyer Jonathan Adkin said the African country was no longer suing Privinvest and its owner Iskandar Safa for “macro-economic loss”. He did not give a figure, but a court filing by Mozambique said the republic had abandoned part of its case representing a “significant element” of the claim’s value.
Court documents filed last month and this week show the country, one of the world’s poorest nations, has most recently been seeking around $830 million for macro economic losses between 2016 and 2018 in relation to the scandal.
The case centres on deals struck by state-owned Mozambican companies with Privinvest to secure loans and bonds from banks such as Credit Suisse in 2013 and 2014, backed by undisclosed state guarantees, ostensibly for fishing boats and maritime security.
But hundreds of millions of dollars went missing and, when the government debt came to light in 2016, donors such as the International Monetary Fund temporarily halted support, triggering a currency collapse, defaults and financial turmoil.
In a court filing seen by Reuters on Thursday, Mozambique’s legal team said the country had dropped part of its claim against Privinvest because of “proportionality” and concerns about Privinvest’s ability to pay if it were found liable.
