UBS Group AG has reached a significant settlement with Mozambique concerning Credit Suisse’s involvement in a ship-financing scandal, bringing closure to a decade-long legal battle just on the brink of a London trial.
In a statement released today, Zurich-based UBS revealed that the settlement extends to most of the other lenders who were part of the Proindicus Facility Agreement, alongside Credit Suisse. The financial terms of the agreement were not disclosed by UBS, which acquired Credit Suisse in June of this year.
“The parties have mutually released each other from any liabilities and claims relating to the transactions,” UBS stated in its press release.
This settlement marks the culmination of a protracted legal dispute initiated when Credit Suisse initially financed the construction of a new coastal patrol force and tuna fishing fleet for Mozambique. The African nation has long asserted that the Swiss bank overlooked warning signs and the involvement of its own bankers in deals connected to a $2 billion bond issuance.
Proindicus, a state-owned entity in Mozambique, had received financing from Credit Suisse.
In 2021, Credit Suisse agreed to pay nearly $475 million to resolve multiple global investigations into its role in the scandal, which witnessed the misappropriation of hundreds of millions of dollars from Mozambique, plunging the nation into an economic crisis. As part of this agreement, a European division of the bank pleaded guilty to a single charge of conspiracy to commit wire fraud, and Credit Suisse entered into a three-year deferred-prosecution agreement with the US Justice Department.
This case was one among several legal challenges faced by Credit Suisse, prompting UBS to seek resolutions to clear the path for integrating the thousands of employees from its former rival. In August, UBS consented to a $1.4 billion settlement to conclude a long-standing case related to US mortgage-backed securities.
This settlement between UBS and Mozambique marks a crucial turning point in the ongoing saga of the ship-financing scandal, bringing an end to years of legal wrangling between the parties involved.
Photo Source: Google
October 1st , 2023
Delino Gayweh
Serrari Financial Analyst
