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June 8, 2020

Swiss prosecutors probe Mozambique loan scandal involving Credit Suisse

Swiss prosecutors have launched a probe into a $2bn loan scandal in Mozambique involving Credit Suisse.

The criminal proceedings are directed towards unknown persons.

“The OAG opened criminal proceedings in February 2020 on suspicion of money laundering in connection with the granting of loans to state-owned companies in Mozambique,” stated the Office of the Attorney General (OAG).

The statement confirms a report by newspaper Neue Zuercher Zeitung.

Credit Suisse was one of the banks arranging $2bn in government-backed loans between 2013 and 2016 to develop Mozambique that led to a debt crisis in the country.

The loans were marketed as investments in maritime security projects and a state tuna fishery.

However, millions of funds have not been accounted for, with the US alleging kickbacks and fraud.

Apart from Switzerland, the bank along with three former bankers, two middlemen and three Mozambican government officials have faced probe in London, New York as well as South Africa.

Credit Suisse said that it is cooperating with the concerned authorities on the issue.

The bank was recently also involved in a spying scandal and appealed to the top court to review the lawyer appointed by FINMA for looking into the scandal.

The scandal involved the surveillance of Credit Suisse former head of wealth management Iqbal Khan.

An internal investigation blamed Credit Suisse COO Pierre-Olivier Bouée for the spying operation, resulting in his ouster. The probe cleared CEO Tidjane Thiam who stepped down from his position.

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