Mozambique: Secret Debt Case To Go Ahead In London

(File photo).

The London High Court has allowed Mozambique's $2 bn secret debt case against Credit Suisse and Privinvest to go ahead.

The secret debt contracts are adjudicated in the London High Court, and last year Mozambique commenced proceedings claiming that that the supply contracts were one-sided and amounted to "shams" or "instrument of fraud" and that bribes were paid to certain officials and individuals in Mozambique, and the lead salesman and negotiator of Privinvest.

Mozambique claimed that there was a conspiracy to render it liable under the guarantees and that Privinvest and Credit Suisse were liable for damages for that conspiracy. Privinvest and subcontractors applied to the court to delay proceedings to allow arbitration.

On 15 July the High Court rejected this appeal, saying it was not reasonable to delay the case for three years, and the case will now go ahead. No date has been set.

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