Three ex-Credit Suisse bankers have been taken into custody in London in connection with the corruption scandal involving Mozambique. The Swiss bank says the three had violated controls.
The scandal that broke in 2016 in connection with loans granted to the African nation Mozambique has led to the arrest of three former investment bankers of Credit Suisse in London on charges filed in the U.S., «Reuters» reported.
The three bankers had been involved in granting loans worth more than $2 billion to Mozambique in 2012 and 2013. More than half a billion dollars have disappeared.
Corruption and Money-Laundering
The three ex-Credit Suisse employees have been charged in an indictment in Brooklyn, New York, on accounts of corruption, money-laundering and securities fraud. The indictment claims that some $200 million were pocketed by official in Mozambique and used for briberies.
Manuel Chang, a former finance minister of Mozambique, is said to have received more than $7 million. He was arrested in South Africa last weekend.
Extradition Request
U.S. authorities have requested the extradition of both Chang and the three bankers. The latter have been released on bail on Thursday. One of the former Credit Suisse bankers was Andrew Pearse, according to «Reuters».
finews.com earlier had reported that Pearse had been involved in granting the loan to Mozambique. He later became a partner at an offshore firm called Palomar, together with Privinvest. Privinvest is being controlled by Iskandar Safa, a Franco-Lebanese billionaire, and is a major shareholder in Abu Dhabi Mar, a firm that has received some of the loans granted to the African nation. Pearse had told finews.com that there had been no conflict of interest.
Development Projects
The money for Mozambique had been intended for projects including a fleet of fishery boats, patrol boats and dockyards. Mozambique had founded three state enterprises for the purpose of the projects.
Separately, the U.S. arrested a Lebanese businessman who is said to have worked for a company in Abu Dhabi that had received business orders from the companies in Mozambique.
Credit Suisse said in a statement cited by «Reuters» that it was cooperating with authorities. The three former members of staff had violated internal controls and sought to make a personal profit.
A Problem With the IMF
The scandal in Mozambique created a major crisis for the country because the loans were not revealed to other creditors and the International Monetary Fund.
U.K. financial regulators and the Swiss banking body Finma had started their own probes in connection with the loans. The charges were filed in the U.S. because the payment had been executed via the U.S. The U.K. in November decided not to open a formal investigation against Credit Suisse.
