Musings From Abroad

Mozambique prevails in UK legal battle against Privinvest ‘tuna bond’ controversy

Published

5 months ago

July 29, 2024

In its $3.1 billion case against the Emirati-Lebanese shipbuilder, Privinvest, for allegedly paying bribes in connection with the ten-year “tuna bond” affair, Mozambique has mostly prevailed at London’s High Court.

The southeast African nation filed a lawsuit against Privinvest and its now-deceased owner, Iskandar Safa, claiming that they bought favours with Mozambican officials and Credit Suisse bankers to get favourable conditions on three projects in 2013 and 2014, one of which was to make use of the country’s coastline waters rich in tuna.

Judge Robin Knowles rendered a decision on Monday that was “substantially in favour” of Mozambique. According to Knowles, the country has been taken advantage of by sophisticated institutions and enterprises who ought to have known better.

The judge stated in his written decision that Mozambique is entitled to reimbursement from Safa and the Privinvest group of firms for little more than $825 million.

In addition, the judge awarded Mozambique an indemnity of almost $1.5 billion that it owes bondholders and lenders, minus the approximately $420 million that the nation has already collected.

The trial focused on agreements made between state-owned businesses and Privinvest for bonds and loans from banks, including Credit Suisse, for projects related to maritime security and fishing boats, which were supported by unidentified governmental guarantees.

However, hundreds of millions of dollars vanished, and when the government’s debt was revealed in 2016, donors like the International Monetary Fund momentarily stopped providing support, which led to a crash in currency values, defaults, and financial instability.

“The scale and nature of what was able to happen in this case presented a systemic threat to Mozambique’s economy,” Knowles said in his ruling, although he was also critical of the country’s officials.

Mozambique filed a lawsuit against three of the former employees of Credit Suisse, which has since been acquired by UBS (UBSG.S), opens new tab. Privinvest, Safa, and other employees of the Swiss firm had entered guilty pleas in the US.

Credit Suisse was able to put an end to the crisis that had already cost the bank hundreds of millions of dollars when it reached an agreement with Privinvest during the trial and then reached an 11th-hour settlement with Mozambique in October.

Musings From Abroad

Swiss company Mercuria partners Zambia’s IDC in new metals trading firm

Published

18 hours ago

December 21, 2024

Ifeoluwa Dada

According to a statement released by Swiss commodities trader, Mercuria, on Thursday, it has established a metals trading arm with Zambia, the second-largest producer of copper in Africa.

The trading unit is jointly owned by Mercuria and an arm of Zambia’s Industrial Development Company (IDC), and its purpose is to allow Zambia to engage directly in the minerals trading market.

The joint venture “envisages the establishment of a vehicle to market and trade Zambian copper by mutual leverage,” according to a statement from Cornwell Muleya, the CEO of IDC.

The southern African nation wants to increase copper output to roughly 3 million metric tonnes within the next ten years, and in 2023, it produced roughly 698,000 tonnes of copper, down from 763,000 metric tonnes the year before.

In June, the Zambian government announced that it would establish a minerals trading unit.

Investors including First Quantum Minerals and Barrick Gold are ramping up production, with output set to receive a further boost once Vedanta Resources’ Konkola Copper Mines restart activity.

“Our joint venture with IDC marks a significant milestone for Zambia as it positions itself more strategically in the global minerals market,” Kostas Bintas, Mercuria’s global head of metals and minerals, said in the statement.

Musings From Abroad

Blinken to reveal UN Sudan funding additions

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

Additional financing for humanitarian aid to Sudan and initiatives to strengthen civil society in the nation, where a conflict has killed tens of thousands of people and displaced millions, will be announced by U.S. Secretary of State Antony Blinken at the United Nations on Thursday.

Blinken will make many announcements when he leads a UN Security Council meeting on Sudan on Thursday, which will centre on humanitarian aid and civilian protection, Deputy U.S. Representative to the UN Ned Price told reporters on Wednesday.

According to Price, the announcements would include more money for humanitarian help, initiatives to strengthen civil society, and the return of democracy.

“Sudan, unfortunately, has risked becoming a forgotten conflict,” Price said.

“So part of the reason the secretary … opted to convene a signature event on this very topic is to make sure it remains in the spotlight,” Price said.

For almost 18 months, the paramilitary Rapid Support Forces and Sudan’s army have been engaged in combat, resulting in a severe humanitarian crisis that has forced over 12 million people from their homes and made it difficult for U.N. organisations to provide aid.

A power struggle between the RSF and the Sudanese Armed Forces preceded a planned shift to civilian administration, which sparked the conflict in April 2023.

Although the army declined to join this year’s U.S.-mediated peace negotiations in Geneva, the warring parties did pledge to increase assistance access, which prevented any movement towards a ceasefire.

Price stated that before President Joe Biden’s term ends next month, the United States would keep collaborating with allies to enhance humanitarian access in Sudan and eventually end hostilities.

“We are going to leave nothing on the field in our efforts to work with allies, with partners, with the Sudanese stakeholders themselves, on the issues that matter most – humanitarian access, the provision of humanitarian assistance, ultimately, the process by which we can work to get to a cessation of hostilities, which is most urgently needed,” he said.