FMO says Mozambique should not repay any of the loans it got from Credit Suisse as part of a $2bn sovereign debt scandal that has seen three former employees and a former finance minister arrested
An FMO statement emailed to APA on Thursday indicates that it is the figure who can order the Serious Fraud Office (FCA) and the Financial Conduct Authority (FCA) to open investigations and consequently prosecution of officials and banks involved in the scandal.
Under UK law, “giving bribes or commissions to civil servants in other countries is a crime”.
The statement also notes that the indictments filed by the US Justice Department against former Finance Minister Manuel Chang, Senior Managers of Credit Suisse namely Andrew Pearse, Surtel Singh, Detelina Subeva and Jean Boustani of Privinvest provide sufficiently strong evidence of criminal conduct and behind the transactions to finance the Mozambican companies namely Mozambique Tuna Company (EMATUM), PROINDICUS and Mozambique Asset Management (MAM).
They generated benefits in bribes and commissions for the aforementioned agents, at least US $ 200 million, as well as the banks that granted the loans.
This evidence confirms what had already been ascertained and published by the Parliamentary Inquiry Commission (CPI) and the Kroll Audit report commissioned by the Government of Mozambique under pressure from donors and civil society organizations.
Thus, civil society hopes that the lawsuit against the banks will open a new chapter for debt cancellation, freeing Mozambican citizens from paying debts that have not benefited the country.
“Although the accountability process is under way, triggered by the US authorities, it is crucial that banks are also called to respond to justice and remove the responsibility of the Mozambican citizen regarding the payment of this debt,” said the organizations affiliated
to the FMO.
Discovery of the unapproved credits to these thre security firms led the International Monetary Fund (IMF) and Western donors to halt budget support to Mozambique, triggering the collapse of the local currency and debt defaults as well as hitting economic growth.