No further details of the government's suit were immediately available. Pearse is one of three former Credit Suisse managers indicted by the US authorities for their part in the corrupt scheme.
Because US banks were used to channel bribes and kickbacks, and because some of the fraudulent debt was sold on to US investors, the US claims jurisdiction. A US indictment based on a million pages of transcripts of phone calls, e-mails and financial documents names as suspects three former Credit Suisse bankers Pearse, Detelvina Subleva and Surjan SinghJean Boustani, a key salesman for the Privinvest group, which became the sole contractor for the three fake companies, and former Mozambican finance minister Manuel Chang.
Boustani is under arrest in New York, where he has denied all charges. Chang is under police custody in Johannesburg, fighting against possible extradition to the US. Now two of the three former Credit Suisse bankers have struck deals with the US prosecutors. The first to do so was Subleva who in May pleaded guilty to one count of conspiracy to launder money.
As part of the plea bargain, three other conspiracy charges were dropped. Kuntz, which is now circulating on the Internet, directly involved Safa in the fraud.
Pearse said he had been part of a conspiracy to defraud investors in connection with various loans, including a million dollar loan from Credit Suisse to Ematum in when VTB also became involved the size of the Ematum loan rose to million dollars. Before and after his employment at Credit Suisse, Pearse continued, "Privinvest with the knowledge of its executive Jean Boustani, Iskandar Safa and Najib Allam Privinvest's Chief Finance Officerwired me millions of dollars in unlawful kickbacks from loan proceeds and illegal payments for my assistance in securing loans made by Credit Suisse".
As managing director of Credit Suisse Securities Europe Ltd, Pearse led the team that closed the million dollar loan to Proindicus in February He said that Boustani "offered to pay me half of the amount by which I, together with others, reduced a subvention fee to be paid by Privinvest in connection with the loan". Safa was aware of my agreement with Boustani". In March"I agreed with Safa and Boustani that I would receive a percentage of any further Proindicus loan proceeds that Privinvest received after the initial million dollar loan", Pearse said.
Pearse said he knew that another Credit Suisse banker, Surjan Singh, "was secretly being paid by Privinvest to aid the conspiracy.
Specifically, in September and October I made two payments of one million dollars each to Singh. The payments, which came from funds I received from Privinvest, were in exchange for Singh's assistance in reducing the subvention fee on Proindicus and for securing Credit Suisse's approval of the Ematum loan".
Guebuza's son, Ndambi, is currently under detention in Maputo, where the Attorney-General's office intends to charge him with criminal offences arising from the illicit loans.
Pearse pleaded guilty to one charge of conspiracy to commit wire fraud. He was released on bail of 2. He is being electronically monitored and must report to agents of the Federal Bureau of Investigation once a week. The extent of Pearse's collaboration with the US authorities is not yet clear. His plea agreement and all other related records were placed under seal.A source at the attorney general's office, in an emailed reply to AFP, confirmed "a case is ongoing" without giving details.
The papers were submitted on July 31 and no date has been set yet for the hearing, the source said.
Ex-Credit Suisse Banker Accused of Lying
Safa is CEO of a giant shipbuilding company, Privinvest, which signed contracts with Mozambique state companies to supply ships and national maritime security. The government's legal moves came after testimony in a New York court last month by a former Credit Suisse banker, Andrew Pearse. Safa, he said, had wired him "millions of dollars in unlawful kickbacks from loan proceeds and illegal payments" for help in securing loans from the bank.
The government admitted it borrowed the money secretly, forcing international donors to suspend aid. Several people have been arrested both in Mozambique and abroad.
Chang was arrested in South Africa last year on a US extradition request. In an ongoing tussle over where he could stand trial, the Mozambican government this week said it would fight attempts to extradite him to the US after the South African government halted plans to send the minister to his home country. When the hidden debt was revealed, Mozambique -- which relies on donor aid and is one of the world's poorest countries -- was plunged into the worst financial crisis in its history.
They were arrested in London in early January. In May one of them pleaded guilty to conspiracy to launder funds over the case. Safa's lawyers and spokesman were not immediately available for comment.
Confirmation Code:. Activate account. Resend confirmation code. Forgot your password? Don't have an account? Sign up. International Africa. Mozambique govt, opposition Renamo sign historic peace pact. Africa halts extradition of Mozambican ex-minister. Lebanon Mozambique Iskandar Safa debt scandal. Please you have to log in. MoPH announces new coronavirus cases, 28 recoveries Qatar Apr 8, QP to postpone start of production from its new gas facilities until Qatar Apr 7, Fee reduction would affect schools adversely, says Chamber's edu committee rep Qatar Apr 7, Iran plans phased lifting of lockdown Region Apr 9, Mourinho admits error in coaching amid virus crisis Sport Apr 9, The target: Emmanuel Macron.
The reason: colonialism and migration. They are pegged to the Euro and backed by the French treasury — but only in return for holding half the foreign currency of participating countries. France says this provides financial stability and credibility, critics say it hinders economic development.
In Africa, some take away wealth from the people and the continent. France is certainly among them. Its research and development program focuses on marine renewable energy. As for Safa himself, he was born in in Beirut into a Maronite Christian family. He worked for a few years in Saudi Arabia before taking over Constructions Mecaniques de Normandie, a French shipyard. Within two years he turned around a business that was on its last legs into a successful company.
Privinvest is now one the largest ship-building companies in Europe and the Middle East. Privinvest played a key role passing money between them and Safa was allegedly at the heart of the deal, having previously sold the country military and surveillance equipment through Privinvest. The country still has not recovered from the resulting debt crisis. E-mails show the parties openly discussing bribes.
Luanda in recent times has turned a cold shoulder to Lisbon, and instead warmed to Paris. Part of this shift was a deal signed in September with Privinvest. The problem was two-fold: firstly, Angola only has around 1, sailors and little ship-building experience, making the deal suspicious; and secondly, the country was in dire financial straits.
Okonjo-Iweala said the proposal meant Nigeria would have to shoulder all the risk, and that such a large loan would have to be approved by the National Assembly. The deal was not signed, and Okonjo-Iweala had no regrets. Welcome to Africanews Please select your experience. Watch Live. Breaking News Close.
By Karim El Bar. Africanews provides content from APO Group as a service to its readers, but does not edit the articles it publishes.Billionaire Iskandar Safa says a former Credit Suisse banker accused him falsely in testimony given to a New York court.
This is but the latest development in the scandal involving loans to Mozambique. Andrew Pearse, an ex-managing director at Credit Suisse, in July pleaded guilty of having accepted kickbacks. The money granted to the companies in Mozambique was intended for a tuna-fishing fleet, patrol boats and a shipyard. Safa also claims that Pearse wasn't as influential for the deal as he claimed.
Pearse was the second ex-Credit Suisse banker to plead guilty.
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Lamola says he wants an opportunity to reconsider the decision to extradite Chang to the USA. The USA wants to put him on trial for money laundering and conspiracy to commit fraud. Their disclosure in prompted foreign donors including the International Monetary Fund to cut off support for Mozambique, triggering a currency collapse and debt default.
Privinvest earlier this year instituted proceedings to sue the Mozambique government for breach of contract. He admitted to his role in the fraud scheme for which he said he had received kickbacks knowing that they were the proceeds of illegal activities. Pearse is one of three Credit Suisse employees named and arrested for their roles in the scam. They were arrested in London in January. Log in to leave a comment. Monday, April 13, My account Advertisement Contact Us Cart.
Fishing Industry News SA. Mozambique News. Two of the 24 tuna vessels delivered in Cargo Claims and Covid Spotlight on Soupfin and Smooth Hound Sharks.
Fishing is an Essential Service — Including Inland. Hake Trawl Re-Certification Delayed. Most Popular. In South Africa, there are several places at particular risk of abrupt disruption to biodiversity in a high-emissions scenario. In these areas, this could affect more species, according to research. The likelihood that the national lockdown will continue indefinitely leaves South African and Namibian companies moving goods with a dilemma.
Do they shut down, or do they take the risk that any goods they move will not make it to the final destination? The Cape snoek is running and line fishermen are between a rock and a hard place. They can travel between the western and northern Cape to catch the fish during lockdown, but they can't stay overnight which makes the trip uneconomical.
This means many South African consumers might have to forfeit their snoek braai barbeque this Easter.This report is part of an investigation made possible by a grant from Journalismfund. Since the hidden loan to ProIndicus was discovered in April this yearthe IMF and international donors have suspended financial aid to the country which is having to make deep cuts to basic services in order to avoid defaulting on the loans. EMATUM combined a fishing fleet with naval defence vessels, while ProIndicus is purely a coastal defence equipment deal, according to the Mozambique government.
A previous version of this article stated that Andrew Pearse is in the pay of, and working directly for, Privinvest and its owner, Iskandar Safa. All rights reserved. Save my name, email, and website in this browser for the next time I comment. April, 0. Leave this field empty. We use this for some functionality on our website to work properly, and also to collect analytics to better understand our visitors and offer them a better experience.
Should those countries be compensating Mozambique for the actions of their bank, rather than further punishing Mozambicans? According to the Wall Street Journalthe saga started in when French-Lebanese defence contractor Iskandar Safa asked Credit Suisse to help Mozambique borrow money to pay for military and surveillance equipment through his company Privinvest.
But the other reason for the secrecy was that Credit Suisse was promoting the sale of bonds and syndicated loans with claims that are now being challenged.
It said the loans were guaranteed by the government, when this is explicitly prohibited without parliamentary approval, which was not forthcoming because the loans were secret.
UPDATE: Twists and Turns in Mozambique Debt Scandal
And business plans for companies that were supposed to be able to repay the loans were dubious — for example, a tuna fishing company was predicted to be able to sell its fish for five times as much as neighbouring Seychelles. Finally, and very unusually, Credit Suisse agreed that all of the money would go directly to Privinvest, and none would enter Mozambique.
Investigations of Credit Suisse and two other banks are now under way by financial authorities in the UK, US and Switzerland, and there is a criminal investigation by the FBI in the US into whether the banks facilitated corruption and money laundering. When the full package of loans became publicly known last year, the IMF halted its programme to Mozambique and donors cut aid directly to government — stopping aid money that was funding social services such as health and education.
Donors and the IMF also demanded a forensic audit, which was done by Kroll and which showed more than half the money cannot be accounted for, and that promised equipment was not delivered or was substantially overpriced.
A priority has been building better governance, and more than a decade of aid and technical support has helped the government develop its own effective accounting and payment system, with payments made directly to bank accounts. But in response to the secret debt, donors now refuse to use the system they helped create. Mozambique is expanding pensions and social benefits and plans to introduce a new child benefit, all using its successful payments system.
But the UK Department for International Development DfID is using the aid ban to bypass and undermine the system, creating an entirely separate pilot child benefit to be run by the private sector. The Kroll audit showed that Credit Suisse earned substantial commissions on the Mozambique debt package, which meant profits for Credit Suisse, bonuses for bankers in the City of London and dividends for the Norwegian sovereign wealth fund.
Yet, despite profiting from highly dubious lending, it is only the poor in Mozambique who are penalised — perhaps punishing them for electing rapacious leaders. Surely Britain, Norway and Switzerland have a responsibility. First, they should put pressure on Credit Suisse to take responsibility for its role in the corrupt loans to Mozambique.
Second, surely rather than cutting aid, these donors should increase aid to compensate for the harm done by their profitable bank. This is not surprising at all. My observations on most grand corruption cases all over Africa usually bear the same formular.
At the end of the day, the wrath is incurred by the poor citizens while the perpetrators never get punished. Click here to cancel reply. Email Address.
Facebook Facebook. When no one has clean hands, who do you punish? Share this: Click to share on Facebook Opens in new window Click to share on Twitter Opens in new window Click to email this to a friend Opens in new window Click to print Opens in new window. November 30th, FeaturedTopical and Comment 1 Comment. Previous post Next post. One Comment. Ziwa Joel 30 November, at - Reply. Leave A Comment.