On 29 July 2024, Mr Justice Robin Knowles CBE handed down judgment in The Republic of Mozambique v Credit Suisse International & Ors, a set of 11 Commercial Court proceedings relating to a set of three sovereign guarantees (the “Guarantees”) purportedly executed by the Republic of Mozambique with a combined value of c. US$2 billion. The proceedings consisted of the Republic’s claims in bribery relating to the Guarantees and various jurisdictional and state immunity challenges, part of which were determined by the Supreme Court earlier this year: [2023] UKSC 32.
The Guarantees were purportedly executed in relation to lending by Credit Suisse and VTB Capital Plc to three of the Republic’s state-owned enterprises (“SOEs”) which was paid to members of the Privinvest group of companies, led by Mr Iskandar Safa, under three supply contracts. On the face of things: the first supply contract was for the supply of radar stations, boats and aircraft for monitoring and protecting the Exclusive Economic Zone (EEZ), including from piracy; the second was for the supply of a fishing fleet to fish tuna in the EEZ; and the third supply contract was for the supply of shipyard facilities, including for shipbuilding and repair. Each of those projects subsequently failed.
The Republic contended that the Guarantees were procured by the bribery of, among others, the Republic’s Minister of Finance, Manuel Chang. It asserted that those Guarantees were invalid, voidable or unenforceable, and brought claims in bribery against, among others, the Privinvest parties and Mr Safa. These events have become known as the “tuna bonds” or “hidden debts” scandal.
Following a 13-week trial beginning in October 2023, named as one of The Lawyer’s Top 20 Cases for 2023, the Court found for the Republic in its claims against the Privinvest parties and Mr Safa, holding that payments were made to or to the benefit of Minister Chang ([469]) constituting bribes under English law ([479]), and that the payments gave rise to civil liability under both English and Mozambican law ([500]). The Court at [531] to [545] discussed the elements of liability in the tort of bribery, dishonest assistance and unlawful means conspiracy.
The Court accordingly found that the Republic was entitled as against the Privinvest parties and Mr Safa to payment of c. US$825 million and to an indemnity in respect of future liabilities estimated at c. US$1.5 billion.
The judgment is available here.
Joe Smouha KC, Ciaran Keller and Akash Sonecha of Essex Court Chambers appeared for the Republic of Mozambique, with Jonathan Adkin KC and Zahler Bryan of Serle Court Chambers, Richard Blakeley KC of Brick Court Chambers, Ryan Ferro and Sarah Parker of 3VB, and Edward Gilmore of Twenty Essex, instructed by Keith Oliver, Sarah Gabriel, Emma Ruane and Jason Woodland at Peters & Peters.
David Davies KC of Essex Court Chambers appeared for Isaltina Lucas, a Third Party, with Robert Winspear of 42BR and Duncan Bagshaw of Howard Kennedy, instructed by Duncan Bagshaw at Howard Kennedy.
Nathan Pillow KC of Essex Court Chambers also appeared for the Republic of Mozambique in a Supreme Court appeal in 2023 and Jeremy Brier KC of Essex Court Chambers appeared for the Republic of Mozambique in a strike out application in 2023.