Credit Suisse Sued by Mozambique in London Courts Over Contracts

JOHANNESBURG (Capital Markets in Africa) – Mozambique’s government, caught up in a scandal after defaulting on $2 billion in loans, sued Credit Suisse Group AG and others in London.

The lawsuit is against the Swiss lender, Privinvest Shipbuilding SAL and three individuals, according to a court document. The claim is being brought for potential breaches of commercial contracts and arrangements but the filing provided no further information.

In December, the U.S. Department of Justice accused three former Credit Suisse workers, government officials and others of creating $2 billion in maritime projects as a front to enrich themselves. They diverted at least $200 million of the funding to pay bribes and kickbacks, according to an indictment. Former Mozambican Finance Minister Manuel Chang was arrested in Johannesburg on a U.S. warrant as part of the case.

Credit Suisse declined to comment, while a spokesman for Privinvest said it hasn’t received any filing. Mozambique is being represented by its attorney general, who also didn’t respond to emailed questions.

Source: Bloomberg Business News