Mozambique’s Investment Fraud Case Study: A Major Victory for Howard Kennedy’s Client

Commercial Court Delivers Significant Ruling Against Mozambique

In a significant blow to Mozambique’s case against Howard Kennedy’s client, Ms Isaltina Lucas, the Commercial Court has dismissed the last remaining claim against her in the ongoing investment fraud trial involving Credit Suisse and other parties. The court ruling effectively ends all claims against Lucas without any finding of liability.

Background: A $2 Billion Loan Gone Wrong

Lucas, a former Director of Treasury and Deputy Finance Minister of Mozambique, was accused of receiving substantial bribes and being part of a corrupt conspiracy to secure a $2 billion loan from Credit Suisse between 2012 and 2015. The loan was intended to fund the supply and installation of equipment and facilities for a coastal defense system, tuna fishing fleet, and other maritime infrastructure.

However, in 2016, the lending was revealed, causing catastrophic damage to Mozambique’s economy. Investigations later uncovered evidence of bribery and fraud, with up to $300 million said to have disappeared. Several individuals were prosecuted successfully in Mozambique and the United States, while Credit Suisse accepted substantial penalties for its failure to protect against corruption and fraud.

The Trial: A Long and Complex Journey

In the Commercial Court proceedings, Mozambique challenged a guarantee issued to Credit Suisse and sought massive damages from Privinvest, the company responsible for supplying equipment and services. Lucas faced judgment for huge sums if found liable, but always denied any wrongdoing and was not prosecuted or convicted of any crime.

After a settlement between Credit Suisse and Mozambique in October, Credit Suisse’s claim against Lucas was stayed by agreement. Lucas then secured an agreement with Mozambique to drop allegations of bribery against her. She subsequently applied to strike out the remaining claim against her, which sought an order that she contribute to Privinvest’s liability.

The Ruling: A Major Victory for Howard Kennedy’s Client

In a significant ruling, Mr Justice Robin Knowles CBE has dismissed the last remaining claim against Lucas on the basis that it has no real prospect of succeeding. This means that all claims against Lucas have been resolved without any finding of liability against her.

Howard Kennedy’s Team: The Key to Success

Howard Kennedy’s team, led by David Davies KC, Robert Winspear, Duncan Bagshaw, Luke Barden de la Croix, and Leah Mazzuco, played a crucial role in securing this major victory for Lucas. Their expertise and dedication were instrumental in achieving this significant outcome.

Next Steps: The Trial Continues

The trial continues, with Mozambique seeking damages from Privinvest and VTB bank seeking to recover part of the lending they made.