From: RegTech Analyst
Credit Suisse has long claimed that it was deceived by rouge bankers when it lent $2bn in a criticised Mozambique deal.
However, it has now been revealed that the outgoing regional boss warned against the deal that has now resulted in the bank facing a law suit and questions about its due diligence.
The Swiss banker seemingly ignored the warnings of Fawzi Kyriakos-Saad, who was heading the bank’s EMEA operations at the time, that expressed concerns about the risks of going through with the deal, according to legal filings seen by Bloomberg.
While the money was supposed to fund a new coastal patrol force and help develop Mozambique’s fishing industry, US authorities later claimed that the contracts were a front for government officials and Credit Suisse’s own bankers who allegedly tried to fill their own coffers by as much as $200m.
The country has now sued the bank, questioning its decision-making process. Mozambique is also trying to cancel the loans to some of the deals made with the billionaire Iskandar Safa who were supposed supply the patrol vessels for the firm. Safe reportedly denies the claims.
Credit Suisse claims that it went through its usual due diligence before the deal. Despite having noted a risk of corruption and having previously named Safa as an “undesirable client”.
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