Maputo, 17 May (AIM) – Mozambique’s solicitors, Peters & Peters, in the “hidden debts” case, have revealed that the appeal filed by the Abu Dhabi based group Privinvest in the British justice system was dismissed for failure to comply with the imposed conditions.
The case relates to loans of over two billion US dollars made by the banks Credit Suisse and VTB of Russia in 2013 and 2014 to three fraudulent Mozambican companies (Proindicus, Ematum, and MAM) which were all effectively run by the security service, SISE.
In theory, the loans were for, amongst other things, a tuna fishing fleet, shipyards and maritime security. But none of these ventures ever took off and soon became bankrupt.
The loans were only possible because the Mozambican state provided sovereign guarantees that, if the companies failed, the state would repay the money. The man who signed the guarantees was former Finance Minister Manuel Chang.
The money went, not to Mozambique, but directly to Privinvest as the sole contractor for the three companies. Privinvest then sold the companies fishing boats, patrol vessels, radar stations and other assets at vastly inflated prices. An independent audit of the three companies put the over-invoicing at around 700 million dollars.
According to the law firm Peters & Peters, which represents Mozambique, the appeal filed by Privinvest against the judgment in “hidden debts” case did not comply with the security conditions imposed by the Court of Appeal.
“Consequently, the judgment delivered by Judge Robin Knowles in July 2024 is final against the business entities of the Privinvest group, which are also liable to the Republic for the costs of the appeal”, reads the firm’s statement.
The lawyers also explained that legal actions remain in place to obtain financial compensation from the heirs of the late Privinvest founder Iskandar Safa, who died in 2024.
In the judgment delivered in July 2024 by the Commercial Court in London, Judge Knowles ordered the naval group to pay approximately 1.9 billion dollars in damages.
Safa and Privinvest were found guilty last year of bribing Mozambique’s then Minister of Finance, Manuel Chang.
Mozambique’s Attorney General’s Office (PGR) requested authorization to include the widow, Clara Martinez Thedy de Safa, and the sons, Akram Safa and Alejandro Safa, as defendants to continue the process.
The same judge had authorized Privinvest to proceed with an appeal, which was scheduled to begin trial in June.
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