
Maputo, 29 Jul (AIM) – The Mozambican Attorney-General’s Office (PGR) has recovered assets valued at about 400 million US dollars from those found guilty in the “hidden debts” trial that took place in Maputo in 2021-2022.
19 suspects were tried in the case that revolved around the illicit loans for over two billion US dollars obtained from the banks Credit Suisse and VTB of Russia by three fraudulent, security-related companies, Proindicus, Ematum (Mozambique Tuna Company) and MAM (Mozambique Asset Management).
The scheme was cooked up by corrupt Mozambican officials, Credit Suisse bankers, and the Abu Dhabi based group, Privinvest.
Privinvest became the sole contractor for the three companies, and provided them with fishing boats, patrol vessels and other assets that were vastly over-invoiced. An independent audit of the companies put the over-invoicing at more than 700 million dollars.
Although the three companies were run by the Mozambican Security Service, SISE, and had no business track record, the banks handed over the two billion dollars requested. This was largely because the Mozambican government of the time, under the then President Armando Guebuza, guaranteed 100 per cent of the loans.
The loan guarantees were signed by Guebuza’s Finance Minister, Manuel Chang, who is currently on trial in New York for conspiracy to commit money laundering, wire fraud and securities fraud. The guarantees were illegal since they smashed through the ceiling on loan guarantees, set in the Mozambican budget laws of 2013 and 2014.
Predictably the three companies went bankrupt, leaving the Mozambican state liable to repay the loans. Thus hidden loans were transformed into hidden debts.
In the Maputo trial, those found guilty included the head of SISE, Gregorio Leao, his deputy Antonio Carlos do Rosario, who was the chairperson of all three fraudulent companies, and Ndambi Guebuza, the oldest son of the president, who was accused of taking bribes of 33 million dollars from Privinvest.
According to a report in the Maputo Sunday paper “Domingo”, the assets recovered by the PGR, from 11 of the accused, are mainly buildings and luxury vehicles.
The buildings that revert to the state include residences, warehouses and hotels. Some of these are now being used to accommodate State institutions that do not have premises of their own
Some of the seized vehicles, described as “top of the range” have also been distributed among state bodies. But luxury vehicles unsuitable for state use remain parked awaiting a future decision on their fate.
The money from the loans to Proindicus, Ematum and MAM was sent, not to Mozambique, but directly to Privinvest, and the Mozambican authorities still hope to recover it.
That depends on the outcome of a trial in London, where the Mozambican state is suing Privinvest for 3.1 billion dollars. The judge in the London case, Robin Knowles, had initially promised a verdict by last Monday, but then postponed it by a week.
The PGR source cited by “Domingo” said the London case has so far cost the Mozambican state between 200 and 300 million dollars. These legal costs can be retrieved – but only if the court finds in Mozambique’s favour.
(AIM)
Pf/ (523)