Skip to content

Can Mozambique Revoke a Sovereign Guarantee on a Loan it Alleges was Corruptly Procured?

Mozambique’s blockbuster lawsuit against Credit Suisse and others over the $2bn “tuna bond” scandal can proceed to trial, a London judge ruled on Monday, despite complaints that the African nation has failed to fully disclose documents. High Court judge Robin Knowles said it was not just, proportionate or necessary to strike out the complex case, which encompasses 11 sets of proceedings, three months before a London trial scheduled to start on October 2. The tuna bond or “hidden debt” case has triggered litigation from Maputo to New York, but the London case is due to establish whether one of the world’s poorest countries can revoke a sovereign guarantee on a loan it alleges was corruptly procured, and secure compensation for other alleged wrongdoing. Credit Suisse agreed to pay about $475m to British and US authorities in 2021 to resolve bribery and fraud charges and has pledged to forgive $200m of Mozambican debt. It has said three former bankers, who pleaded guilty in the US to handling kickbacks, hid their conduct from the bank.