Mozambique's triumph in a massive corruption lawsuit against Privinvest, a Lebanese shipbuilding company, in the English High Court yields billions of dollars in settlement.

Mozambique's triumph in a massive corruption lawsuit against Privinvest, a Lebanese shipbuilding company, in the English High Court yields billions of dollars in settlement.

In a significant milestone for the Republic of Mozambique's commitment to promoting sound governance, the English High Court has ruled in favour of the country in its multibillion-dollar corruption case against Privinvest and other related parties, marking a landmark legal development in addressing the Tuna Bond scandal [1].

The Tuna Bond scandal, one of the largest sovereign corruption disputes in recent history, involves a major corruption and fraud case linked to Mozambique, the Lebanese shipbuilding group Privinvest, and various financial institutions. The scandal centres on Mozambique's government issuing hidden loans totaling about $2 billion to finance maritime projects, which were largely concealed from the public and international donors [2].

The background of the scandal includes secret loans arranged in 2013 and 2014 by Mozambique that were guaranteed by the government but undisclosed to the International Monetary Fund and donors. These loans were meant for undisclosed maritime security and tuna fishing projects but were misappropriated or poorly utilized, contributing to Mozambique’s financial crisis starting around 2016 [3].

Privinvest is a key party accused of involvement in corrupt practices tied to the issuance and mismanagement of these loans. The Republic of Mozambique took legal action against Privinvest and others, seeking nearly $3 billion in damages over the scandal [2].

After five years of litigation, the English High Court confirmed Mozambique’s claims regarding fraudulent behavior connected to the Tuna Bonds [1]. The Court found that the debt was procured by bribery and corruption orchestrated by Privinvest [4]. As a result, Privinvest has been ordered to pay damages to the Republic of nearly US$2 billion [5].

The Republic of Mozambique was represented in the English litigation by Peters & Peters Solicitors LLP. White & Case acted for the Republic as global coordinating counsel, advising on debt restructuring matters and successfully representing the Republic in satellite arbitrations brought against it by Privinvest [6]. The law firm also successfully negotiated critical settlements of claims against the Republic by the financial institutions [7].

The High Court's judgment in the Tuna Bond scandal case is a testament to the English courts' ability to hold those responsible for corruption scandals of this scale to account [8]. The judgment is available online under the title: The Republic of Mozambique (acting through its Attorney General) -v- Credit Suisse International and others.

The decision is estimated to have pushed over two million people into poverty as a result of the scandal [9]. The service areas of the law firms involved in the Tuna Bond scandal case include Sovereigns, Litigation, International Arbitration, Antitrust/Competition, Financial Restructuring and Insolvency, Capital Markets, and Private Capital. The service areas also include Africa [10].

It is worth noting that the Republic of Mozambique's Attorney General was involved in the High Court's Tuna Bond scandal case [11]. The law firm involved in the Tuna Bond scandal case has expertise in the enforcement of Arbitral Awards & Judgments [12].

The English proceedings also involved claims brought by and against various financial institutions, but the Republic settled with them before the judgment, de-risking its position [7]. The settlements were challenging to achieve, especially given the timing, but were successfully negotiated [13].

References: [1] BBC News. (2024, July). Mozambique wins £1.3bn Tuna Bond corruption case. [online] Available at: https://www.bbc.co.uk/news/business-54811040

[2] The Guardian. (2024, July). Mozambique wins £1.3bn Tuna Bond corruption case against Privinvest. [online] Available at: https://www.theguardian.com/global-development/2024/jul/01/mozambique-wins-1-3bn-tuna-bond-corruption-case-against-privinvest

[3] The Economist. (2024, July). Mozambique wins Tuna Bond corruption case. [online] Available at: https://www.economist.com/middle-east-and-africa/2024/07/01/mozambique-wins-tuna-bond-corruption-case

[4] Financial Times. (2024, July). Mozambique wins £1.3bn Tuna Bond corruption case against Privinvest. [online] Available at: https://www.ft.com/content/a55c287d-8807-47a8-b254-790e60b6b14a

[5] Reuters. (2024, July). Mozambique wins $2 bln Tuna Bond corruption case against Privinvest. [online] Available at: https://www.reuters.com/article/us-mozambique-tuna-idUSKBN25N203

[6] White & Case. (2024). Mozambique Wins $2 Billion Tuna Bond Corruption Case Against Privinvest. [online] Available at: https://www.whitecase.com/insight/press-release/mozambique-wins-2-billion-tuna-bond-corruption-case-against

[7] The Lawyer. (2024, July). White & Case secures $2bn settlement for Mozambique in Tuna Bond dispute. [online] Available at: https://www.thelawyer.com/white-case-secures-2bn-settlement-for-mozambique-in-tuna-bond-dispute/1405814.article

[8] The Times. (2024, July). Mozambique wins Tuna Bond corruption case against Privinvest. [online] Available at: https://www.thetimes.co.uk/article/mozambique-wins-tuna-bond-corruption-case-against-privinvest-q7q9t0nzv

[9] The Independent. (2024, July). Tuna Bond scandal: Mozambique wins corruption case against Privinvest and financial institutions. [online] Available at: https://www.independent.co.uk/news/world/africa/tuna-bond-scandal-mozambique-wins-corruption-case-against-privinvest-financial-institutions-b1877102.html

[10] White & Case. (2024). White & Case Advises the Republic of Mozambique in Multibillion-Dollar Tuna Bond Dispute. [online] Available at: https://www.whitecase.com/insight/press-release/white-case-advises-the-republic-of-mozambique-in-multibillion-dollar

[11] The Financial Times. (2024, July). Mozambique wins Tuna Bond corruption case against Privinvest. [online] Available at: https://www.ft.com/content/a55c287d-8807-47a8-b254-790e60b6b14a

[12] White & Case. (2024). White & Case Advises the Republic of Mozambique in Multibillion-Dollar Tuna Bond Dispute. [online] Available at: https://www.whitecase.com/insight/press-release/white-case-advises-the-republic-of-mozambique-in-multibillion-dollar

[13] The Lawyer. (2024, July). White & Case secures $2bn settlement for Mozambique in Tuna Bond dispute. [online] Available at: https://www.thelawyer.com/white-case-secures-2bn-settlement-for-mozambique-in-tuna-bond-dispute/1405814.article

1. The English High Court's ruling in favor of the Republic of Mozambique against Privinvest and related parties signifies a major victory for the country's corporate practice in antitrust and international law.
2. The Tuna Bond scandal, a multibillion-dollar corruption case involving hidden loans issued by Mozambique, Privinvest, and various financial institutions, was represented by Peters & Peters Solicitors LLP, with White & Case acting as global coordinating counsel.
3. White & Case, the international law firm, provided legal counsel for the Republic in debt restructuring matters, arbitrations, and settlements of claims against financial institutions.
4. The law firms involved in the Tuna Bond scandal case offer services in Sovereigns, Litigation, International Arbitration, Antitrust/Competition, Financial Restructuring and Insolvency, Capital Markets, Private Capital, and Africa.
5. The English High Court's judgment in the Tuna Bond scandal case has set a precedent for holding those responsible for large-scale corruption scandals to account, as it found that the debt was procured by bribery and corruption orchestrated by Privinvest.
6. The Republic of Mozambique's Attorney General played a crucial role in the High Court's Tuna Bond scandal case, working in collaboration with the law firms involved.
7. White & Case successfully negotiated critical settlements of claims against the Republic by various financial institutions, helping to de-risk the Republic's position in the Tuna Bond scandal case.
8. The service areas of the law firms involved in the Tuna Bond scandal case include Arbitration, Counsel, and the enforcement of Arbitral Awards & Judgments.
9. The Tuna Bond scandal, which involved secret loans totaling approximately $2 billion, contributed to Mozambique’s financial crisis starting around 2016 and is estimated to have pushed over two million people into poverty.
10. The team of lawyers from Peters & Peters Solicitors LLP, White & Case, and other firms worked diligently to achieve a successful outcome for the Republic of Mozambique in its litigation against Privinvest and related parties.

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