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Mozambique: Privinvest owner insists President Nyusi to blame for ‘tuna bond’ scandal

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The owner of Emirati-Lebanese shipbuilder, Privinvest, Iskandar Safa, has told London’s High Court that Mozambican President, Filipe Nyusi was ultimately responsible for the failure of the projects at the centre of the “tuna bond” scandal.

Mozambique is suing Privinvest and its owner, French shipping tycoon, Iskandar Safa, for allegedly paying millions of dollars in bribes to bankers atCredit Suisse and officials in Mozambique. The lawsuit is valued at $3.1 billion.

The “hidden debt” or tuna bond issue has sparked criminal investigations from Maputo to New York, as well as a string of related litigations in London involving Credit Suisse, Privinvest, Safa, and many other parties.

Safa, in his written witness statement, as he gave evidence by videolink from Paris, said, “Privinvest does not pay bribes, full stop,” and blamed the failure of the projects on Nyusi, whom he said “wanted the projects to fail” to undermine his predecessor, Armando Guebuza’s political authority.

“When President Nyusi replaced former President Guebuza a power struggle ensued between them,” Safa said.

“President Nyusi made deliberate decisions to undermine the projects, and as a result, the republic failed to take the necessary steps to monetize the projects as intended.”

The allegations against Nyusi were centred on payments totalling $11 million that they believe Privinvest paid in 2014 to support Nyusi’s election campaign and that of his Frelimo party, which is currently in power. Privinvest and Safa claimed he should be held responsible for whatever damages they may be required to pay Mozambique if they were found guilty.

In response to Privinvest and Safa’s arguments, Judge Robin Knowles ruled in his verdict last month that Nyusi “has immunity from the jurisdiction of this court while he is head of state of the republic. If the payments were illegal and they were liable to Mozambique, then Nyusi should be liable to them”.

Following a postponement brought on by Mozambique’s last-minute settlement with Credit Suisse’s new owner, UBS, the trial got underway in earnest last week. Mozambique has shifted its attention to Privinvest and is attempting to recover $700 million in losses, as well as $2.4 billion in potential liabilities.

Musings From Abroad

China’s Hailiang, Shinzoom to establish vehicle battery installations in Morocco

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Hailiang and Shinzoom, Chinese car battery makers, will establish two separate operations in Morocco as the country strives to adapt its burgeoning automotive sector to rising demand for electric vehicles, Moroccan officials announced on Tuesday.

Tanger Tech, the Moroccan northern industrial zone’s development authority, said Hailiang intends to establish a $450 million copper facility on a 30-hectare plot of land. Shinzoom, a subsidiary of Hunan Zhongke, plans to invest $460 million in an anode plant spanning 20 hectares, according to a statement.

In April, the Moroccan government approved Chinese electric battery company BTR New Material Group (835185.BJE)’s plans to build a factory in Tangier to manufacture crucial component cathodes.

Another Chinese firm, CNGR Advanced Material (300919.SZ), plans to develop a cathode plant in Jorf Lasfar, 100 miles south of Casablanca, where the government has set aside 283 hectares for electric battery sectors.

Last year, the Moroccan government and China’s Gotion agreed to examine establishing an electric vehicle battery plant in the country, with a potential investment of up to $6.3 billion. Last month, Industry Minister Ryad Mezzour told Reuters that the Gotion project was moving forward, with conversations over its footprint and location.

Morocco’s strategic location on the Strait of Gibraltar, free trade agreements with important EU and US markets, and existing automotive sector cluster all attract Chinese enterprises.

In 2023, the automotive sector topped Morocco’s industrial exports with $14 billion, a 27% increase. Morocco is home to Stellantis (STLAM.MI) and Renault (RENA.PA) production factories with an annual combined capacity of 700,000 automobiles, as well as a network of local suppliers.

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Musings From Abroad

Prince Harry, Meghan treated to street-style dances in Nigeria as their trip winds down

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On Sunday, Prince Harry and his wife Meghan were treated to street-style dances in Lagos, Nigeria’s commercial capital, where they announced a partnership between their Archewell Foundation and the non-profit Giants of Africa, which utilizes sports to empower young people.

The Duke and Duchess of Sussex are making their first visit to Nigeria, where they were welcomed by the country’s chief of defence staff. The couple watched basketball practice at Ilupeju Senior Grammar School on Lagos Mainland, where Harry participated in ball-bouncing drills and shot a hoop.

“What you guys are doing here at Giants of Africa is truly amazing,” he said. “The power of sport can change lives. It brings people together and creates community and there are no barriers, which is the most important thing.”

The couple watched basketball practice at Ilupeju Senior Grammar School on Lagos Mainland, and Harry stepped on the court for some ball-bouncing drills and to shoot a hoop.

Former Toronto Raptors star Masai Ujiri, president of Giants of Africa, wished Meghan a happy Mother’s Day and said his organization was uniting communities and uplifting young people through sport, especially. Archewell Foundation and Giants of Africa will construct a basketball court in Nigeria’s capital Abuja.

“Talk about full circle again – never did I think we would be able to be here all those years later supporting the expansion of this incredible organization,” she said.
Harry and Meghan were set to round off their Lagos trip by attending a reception for a local charity. The couple live in the United States with their two children after Harry gave up working as a member of the royal family in 2020.

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