from ARMANDO DOMINGOS in Maputo, Mozambique
MAPUTO, (CAJ News) – MOZAMBIQUE faces the ignominy of having a sitting president, and his predecessor, being hauled overseas for alleged corruption as the multibillion dollar ‘hidden debt’ scandal threatens to claim the big fish.
As the scandal takes numerous twists, a British court has authorised the shipping group, Privinvest, to summon President Filipe Nyusi, and five other third parties about potential liability in the case.
The case underway in the United Kingdom is around the furore involving $2 billion of bank loans and bond issues taken out in secret by Mozambican state-owned companies, without the legally required approval of the Mozambique Parliament.
The loans were backed with hidden government guarantees.
Other individuals that the High Court in London has authorised Privinvest to summon include former president, Armando Guebuza, his eldest son Ndambi Guebuza, and former Finance Minister, Manuel Chang.
Guebuza was head of state when the controversial loans were acquired in 2013-14.
Former Mozambique President, Armando Guebuza
They came to light in 2016, a year after the incumbent Nyusi assumed power. The contentious loans plunged Mozambique, one of the poorest countries in Africa, into debt default and economic crisis.
Its total debt skyrocketed to 85 percent of Mozambique’s gross domestic product (GDP).
Nyusi was the Minister of Defence under Guebuza.
Others likely to be summoned are the former directors of Economic Intelligence of State Security and Intelligence Service (SISE), António Carlos do Rosario and Gregório Leão.
Apart from giving the scandal a new dimension, the latest developments fly in the face of the commitment by the government of Nyusi to tackle corruption in the Southern African country.
Privinvest is accused of corruptly paying Mozambican state officials bribes to secure tenders but is eager to clear its name in the UK, where the case is ongoing.
The Lebanese-United Arab Emirates- based shipping firm, denies any wrongdoing.
Duncan Matthews, the lawyer representing Privinvest, told the courts his clients had made legal payments.
“Among those to whom or on whose behalf payments were made was President Nyusi, who was the Minister of Defence,” Matthews is quoted as saying during the proceedings.
Mozambique’s former finance minister, Manuel Chang
Already, Nyusi and other politicians as well as heads of defence agencies are the target of summonses from Swiss-based banking giant, Credit Suisse.
The bank is also eager to clear its name amid charges of money laundering and corruption.
Chang is the only high-profile figure to face charges on the debt scandal.
He is currently detained in South Africa following his arrest in 2018.
South Africa has not extradited him to the United States to face charges.
Chang, whose former colleagues in government are accused of turning against him, is seen as a scapegoat in the corrupt debts.
“He is merely a small fish,” said Maputo-based analyst, Lewis Jamo.
“For long the big fish have been shielded from accountability. It is high time they answered to their part in the crisis,” he added.
The Mozambican government had not commented on the latest developments.
Earlier this week, Nyusi pledged his government’s commitment to tackle corruption.
“We will continue to vehemently fight corruption within the party and in the institutions to which we belong,” he said while officially closing a meeting of the ruling Front for the Liberation of Mozambique (FRELIMO) held in Matola.
– CAJ News