The Mozambican government has just WON a landmark legal case against a private company that drained $2bn from the country in secret loans.

Labelled “a great victory” by FMO, our Mozambican allies, this hidden debt scandal is one that Debt Justice supporters played a big part in helping to expose. 

A decade ago, a company called Privinvest paid out bribes in return for contracts with state owned companies in Mozambique. The deal was funded by $2 billion of illegally acquired loans from the London branches of Credit Suisse and VTB Capital. 

At great personal risk, our allies in Mozambique exposed this scandal – and revealed that the loans were never approved by their parliament. The story became a huge political storm in Mozambique, and supporters like you, friend, helped force the issue onto the political agenda in the UK.  

Will you help celebrate this victory against reckless private lenders by sharing these posts on social media? Let’s spread the news far and wide to shame those involved in the hidden loans scandal! 

During the campaign, thousands of you signed a petition to Credit Suisse and VTB, which later helped to secure a fine of £200m. Later, Debt Justice supporters were involved in preventing an International Monetary Fund loan from being paid, which would have bailed out these secret lenders. Then, after a flurry of emails from supporters like you, a hundred MPs spoke out against secret loans and called for new transparency measures. 

In the ruling this week, the UK Court has said Privinvest has to pay Mozambique $825 million, which could increase by a further $1.5 billion in the future. While we don’t know if they actually have the money to pay, it sends a powerful message about the consequences of arranging secret, corrupt, deals.

We won’t let big private lenders and corporations get away with forcing countries into debt for their own personal gain. Will you help amplify the message far and wide?

While we’re celebrating this legal victory, the decade-long scandal has had a devastating impact on Mozambique: the secret loans caused an economic crisis which is estimated to have cost Mozambique $11-$15 billion. And not everyone involved has been brought to justice - Mozambique’s former Finance Minister is still awaiting trial in the US. VTB has faced no fines for their role in the loans. 

The battle for debt justice can often feel like a David and Goliath struggle. When I first heard about the secret loans scandal, it felt like a huge mountain to climb to bring those responsible to justice. We still have a way to go – but this week has been a reminder for me that when we take action together to expose injustice, we can win. 

In solidarity, 

Tim, Wiz, Heidi and everyone at Debt Justice 

PS if you want to read about the Mozambique case in more detail, just head over to our blog: https://debtjustice.org.uk/news/uk-court-rules-that-mozambique-is-owed-over-2-billion-in-hidden-debt-case

Related articles: 

• Reuters, Mozambique wins UK lawsuit against Privinvest over 'tuna bond' scandal: https://www.reuters.com/sustainability/mozambique-substantially-wins-uk-lawsuit-against-shipbuilder-privinvest-over-2024-07-29/  

• Financial Times (behind a paywall), Mozambique to recover $825mn from ‘tuna bonds’ fraud: https://www.ft.com/content/61a03db1-dbf6-4b04-b550-58a4981c7e00  

• Bloomberg (behind a paywall), Mozambique to Use Cash From London Court Win to Repay Tuna Bonds: https://www.bloomberg.com/news/articles/2024-07-29/mozambique-to-use-cash-from-london-court-win-to-repay-tuna-bonds