UBS reaches ‘tuna bond’ settlement with Mozambique
UBS inherited the Mozambique fraud scandal from Credit Suisse when it bought its Swiss banking rival in March.
Keystone / Hotli Simanjuntak
UBS Group AG reached a settlement with Mozambique over Credit Suisse’s role in a ship-financing scandal, resolving the case between the two on the eve of a London trial.
This content was published on
2 minutes
The settlement between Credit Suisse and the southern African nation also includes most of the other lenders under the Proindicus Facility Agreement, Zurich-based UBS said in a statement Sunday. No financial details were given by the bank, which took over Credit Suisse in June.
“The parties have mutually released each other from any liabilities and claims relating to the transactions,” the bank said in the statement.
The settlement brings to a close a case that began a decade ago when Credit Suisse first financed the construction of a new coastal patrol force and tuna fishing fleet for Mozambique.
Red flags ignored
The African nation alleges the Swiss bank ignored red flags and the corruption of its own bankers in deals struck as part of $2 billion (CHF1.8 billion) worth of bond deals. Proindicus is a Mozambican state-owned entity, for which Credit Suisse provided financing.
Credit Suisse agreed in 2021 to pay almost $475 million to resolve multiple investigations around the world into its role in the scandal, which saw hundreds of millions looted from Mozambique and tipped the country into economic crisis.
As part of the deal, a European unit of the bank pleaded guilty to a single charge of conspiracy to commit wire fraud and Credit Suisse also entered into a three-year deferred-prosecution agreement with the US Justice Department.
The case is one of Credit Suisse’s many legal troubles, which UBS has been looking to settle so that it can focus on integrating thousands of employees from its former rival. In August, UBS agreed to pay $1.4 billion to settle a long-running case over US mortgage-backed securities.
Should raw milk sales be banned or should consumers decide?
Swiss food regulations do not allow raw milk to be sold for direct consumption. However, a loophole allows 400 raw milk vending machines to do just that.
Scientists explain Lake Geneva’s unique carbon footprint
This content was published on
Swiss scientists have unlocked the carbon cycle of Lake Geneva, explaining why it releases CO2 despite containing little organic matter.
Swiss attend Ukraine humanitarian summit in Montreal
This content was published on
Swiss foreign minister Ignazio Cassis is attending a Canadian-hosted conference that will focus on humanitarian issues in war-torn Ukraine.
US Treasury sanctions two Swiss lawyers for aiding Russian clients
This content was published on
The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has added two Swiss lawyers to the sanctions list.
Swiss National Bank launches competition to design new banknotes
This content was published on
The Swiss National Bank (SNB) is launching a competition to design a new banknote series on the theme of “Switzerland and its altitudes”.
Swiss federal prosecutor receives Credit Suisse papers on Mozambique scandal
This content was published on
The Office of the Attorney General of Switzerland has received documents from Credit Suisse relating to the Mozambique debt scandal.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
UBS seeks last-ditch settlement in Mozambique ‘tuna bonds’ case
This content was published on
UBS seeks last-minute deal with Mozambique to avoid a bruising courtroom battle over Credit Suisse’s part in the $2 billion “tuna bonds” scandal
UBS, French tycoon face $1.5bn claim in ‘tuna bond’ scandal
This content was published on
UBS and a French tycoon are set to face a civil claim of around $1.5 billion linked to Credit Suisse’s role in the Mozambique scandal.
Mozambique reeling from Credit Suisse ‘tuna bond’ scandal
This content was published on
Mozambique's Tuna Bond legal battle could be a "hollow victory" if the country's economy collapses under a mountain of debts.
Credit Suisse seeks to strike out Mozambique ‘tuna bonds’ case
This content was published on
Credit Suisse wants London’s High Court to strike out a Mozambique lawsuit over the bank’s role in the $2 billion “tuna bonds” scandal.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.