• News
  • Sport
  • TV
  • Radio
  • Education
  • TV Licences
  • Contact Us
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION
No Result
View All Result
1
Home Africa

Lebanese salesman acquitted in case over $2 bln Mozambique loans

3 December 2019, 11:38 AM  |
Reuters Reuters |  @SABCNews
The man was acquitted of the charges by a jury following a trial which shed new light on a corruption scandal that contributed to Mozambique's debt default in 2016.

The man was acquitted of the charges by a jury following a trial which shed new light on a corruption scandal that contributed to Mozambique's debt default in 2016.

Image: SABC News

The man was acquitted of the charges by a jury following a trial which shed new light on a corruption scandal that contributed to Mozambique's debt default in 2016.

A US jury on Monday cleared a lead salesman for a Lebanese shipbuilding company of charges that he helped to defraud US investors in bonds backed by the Mozambican government.

Jean Boustani, 41, was acquitted of the charges by a jury following a trial in federal court in Brooklyn, which shed new light on a corruption scandal that contributed to Mozambique’s debt default in 2016.

John Marzulli, a spokesperson for federal prosecutors, had no immediate comment.

“Jean never met, spoke to, had a relationship, or lied to any investor,” Randall Jackson, one of Boustani’s lawyers, said in a statement after the verdict. “This is a critical fact.”

The case revolved around three contracts awarded by Mozambique to Boustani’s employer, Privinvest, to build a coastal defense system, a tuna fishing fleet and a shipyard.

The projects were financed with nearly $2 billion in loans from Credit Suisse Group AG and Russian lender VTB.

Prosecutors said Boustani, a Lebanese citizen, paid hundreds of millions of dollars in bribes and kickbacks to Mozambican officials and Credit Suisse bankers to secure the contracts and loans.

Credit Suisse went on to sell parts of those loans to investors, including some in the United States, who were falsely told that all the money was being used for the legitimate government projects, according to prosecutors.

While Privinvest did deliver ships and equipment to Mozambique, prosecutors said, their value was grossly inflated.

Eventually the loans defaulted and investors lost their money.

Boustani, who testified in his own defense at the trial, never disputed that he paid officials but said he had no role in packaging the loans for investors.

His lawyers had argued that the case did not belong in the United States, which Boustani never visited.

Three Credit Suisse bankers previously pleaded guilty in the case. Two of them, Andrew Pearse and Surjan Singh, testified against Boustani at the trial.

Former Mozambique Finance Minister Manuel Chang was also charged in the case. Prosecutors said Chang, who is fighting extradition in South Africa, secretly had the country’s government guarantee the loans in exchange for bribes. Chang denies wrongdoing.

When the loan guarantees became public in 2016, foreign donors to cut off support and Mozambique defaulted on its sovereign debt. It remains among the world’s most indebted countries.

Share article
Tags: MozambiqueJean BoustaniManuel Chang
Previous Post

MTN, Vodacom may face possible discrimination cases  relating to data pricing

Next Post

Zuma given time to respond to Redi Tlhabi’s application to cross-examine him

Related Posts

Kenya economic growth to edge up this year, World Bank says

7 June 2023, 6:09 AM
A firefighter walks near cars damaged during a massive Russian drone strike, amid Russia’s attack on Ukraine, in Kyiv, Ukraine May 30, 2023.

African Peace Initiative for Ukraine/Russia war ready to depart: Ramaphosa

6 June 2023, 8:12 PM
Sudan's General Abdel Fattah al-Burhan stands among troops,in an unknown location, in this picture released on May 30, 2023.

Clashes between Sudan’s warring factions intensify, no end in sight

6 June 2023, 1:34 PM
A man walks while smoke rises above buildings after aerial bombardment, during clashes between the paramilitary Rapid Support Forces and the army in Khartoum North, Sudan, May 1, 2023.

Shelling, looting in Sudan’s capital as military factions battle for 8th week

6 June 2023, 8:03 AM
The UN Habitat Assembly.

President Ruto officially opens second UN Habitat Assembly in Kenya

5 June 2023, 2:27 PM
[File Image] Minister Mmamoloko Kubayi.

Kubayi to represent SA at UN Habitat Assembly on sustainable urbanisation in Kenya

5 June 2023, 10:09 AM
Next Post
Jacob Zuma

Zuma given time to respond to Redi Tlhabi's application to cross-examine him

Most Viewed

  • 24hrs
  • Week
  • Month
  • Eastern Cape ActionSA raises eyebrows over qualifications of senior officials
  • Unisa suspends registrar for various breaches of policy
  • Orlando Pirates player Thembinkosi Lorch found guilty of assault
  • Slain teen Palesa Malatji’s family calls for death sentence to be reinstated
  • Limpopo district embroiled in fraudulent travel claims
  • Dr Nandipha’s looks during court appearances under the spotlight
  • Deadline for Zimbabwean Exemption Permits draws near
  • Reserve Bank expected to increase repo rate on Thursday
  • Zimbabwe receives 18 helicopters from Russian Federation
  • Eastern Cape ActionSA raises eyebrows over qualifications of senior officials
  • Orlando Pirates player Thembinkosi Lorch found guilty of assault
  • Female student stabbed to death at NMU residence
  • Buses in Tshwane grind to a halt due to strike by SAMWU workers
  • Zwane expected to remain Chiefs coach despite dismal season
  • Bus operations suspended due to Samwu strike in Tshwane

LATEST

Carlos Alcaraz in action
  • Sport

Alcaraz has self-belief to achieve greatness: Coach


Missing four-year-old Nakane Lizane from Wells Estate last seen on 11/05
  • South Africa

Gqeberha SAPS offers R50 000 reward for info on missing four-year-old


A sign indicating an Uber Pickup zone
  • South Africa

E-hailing association concerned no one taking responsibility for violence against operators


Scenes from the Basha Uhuru Festival.
  • Youth Month 2023
  • South Africa

Constitution Hill hosts Basha Uhuru Festival during Youth Month


Dr Nandipha Magudumana  in court.
  • Thabo Bester saga
  • South Africa

Dr Nandipha Magudumana – from celebrity doctor to fugitive


eThekwini
  • Politics

Failure to remove incarcerated ANC eThekwini councillor is embarrassing: Analyst


Weather

  • About the SABC
  • Contact Us
  • Jobs
  • Advertise
  • Disclaimer
  • Site Map

SABC © 2023

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • FEATURES
  • OPINION

© 2023

Previous Vodacom building MTN, Vodacom may face possible discrimination cases  relating to data pricing
Next Jacob Zuma Zuma given time to respond to Redi Tlhabi’s application to cross-examine him