Mozambique and Credit Suisse Reach Out-of-Court Settlement Over Tuna Bond Scandal

In a significant development, the government of Mozambique and international bank Credit Suisse have reached an out-of-court settlement regarding the notorious “tuna bond” scandal. The resolution comes after years of legal wrangling over the controversial loans that had far-reaching economic implications for the African nation.

The scandal, which unfolded in 2016, involved the issuance of government-guaranteed bonds for projects ostensibly related to the fishing industry. However, investigations later revealed that a significant portion of the funds was diverted towards undisclosed projects, leading to a severe economic downturn for Mozambique.

The out-of-court settlement signals a milestone in efforts to address the repercussions of the scandal and restore stability to Mozambique’s financial landscape. While specific details of the settlement remain confidential, it is understood to involve a structured repayment plan and commitments to strengthen financial oversight and transparency.

Mozambican Finance Minister, Isabella Nhantumbo, stated, “This settlement is a positive step forward for our nation. It allows us to refocus on rebuilding our economy and implementing robust measures to prevent such crises from recurring.”

Credit Suisse, which faced allegations of failing to conduct proper due diligence before facilitating the loans, expressed its commitment to working constructively with Mozambique to support the nation’s economic recovery.

The resolution is expected to have a positive impact on Mozambique’s credit rating and investor confidence, paving the way for renewed economic growth and development initiatives. Additionally, it serves as a reminder of the importance of stringent financial oversight and accountability in international lending practices.

While the settlement marks a significant milestone, there remains a collective determination to learn from the lessons of the “tuna bond” scandal. Efforts to bolster financial governance, transparency, and accountability are being prioritized to ensure that Mozambique’s economic future is built on a solid foundation of integrity and responsible financial management.

AMN | Anochie’s Report | Maputo.