Switzerland's attorney general is looking into a billion-dollar corruption scandal involving Credit Suisse and bonds for Mozambique.
The Swiss prosecutor opened a criminal investigation into suspected money laundering in a corruption scandal involving Mozambique and Credit Suisse, Swiss daily«Neue Zuercher Zeitung»(behind paywall, in German) reported in Friday. The investigation is directed at unknown persons.
The move means more trouble for a five-year-old scandal for the Swiss bank, which arranged more than $2 billion in bonds and loans for heavily-indebted Mozambique. The coastal African nation is accused of not fully disclosing the extent of these loans to its credits and to the International Monetary Fund. Some of them allegedly landed in accounts controlled by Franco-Lebanese billionaire Iskandar Safa.
Standing Trial
Meanwhile, Mozambique bought maritime infrastructure from Safa, including a tuna-boat fishing fleet – and was unable to fully repay the debt. More than $200 million ended up in the pockets of three ex-Credit Suisse bankers, as well as allegedly government officials in Mozambique and employees of Safa.
Credit Suisse remains locked in a legal battle with Mozambique, while British and Swiss financial regulators are investigating. The three former Credit Suisse investment bankers who handled the financing are standing trial in the U.S.
Suspicion Registered
The Swiss prosecutor said it began its investigation in February following a criminal complaint by Public Eye, a Zurich-based watchdog. It also registered suspicious activity reports from a money laundering notification office attached to the federal police, the outlet reported.
Credit Suisse didn't comment on the report specifically but said it is cooperating with all the involved authorities and agencies.
