Mozambique Bribe Claims Could Void Debts, Law Professor Says
- At least 10% of $2 billion loans may have been used for bribes
- U.S. Dept. of Justice orders arrest of 3 Credit Suisse bankers
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The arrest of Mozambique’s ex-finance minister and three former Credit Suisse AG managers over alleged bribes could render void about $2 billion of project loans to the country, according to Mitu Gulati, a law professor at Duke University in the U.S.
The projects, a tuna-fishing and coastal-protection system, were created to enrich those involved, and at least $200 million of the proceeds went to bribes and kickbacks, according to an indictment from the U.S. Department of Justice. The allegations in the indictment, unsealed on Jan. 3, show how the scandal unfolded between 2013 and 2016 and could have significant implications for the debts that Mozambique has been seeking to restructure since 2016.