Mozambique hidden-debt / EMATUM financing fraud
Risk Mechanism
Undisclosed debt obligations, kickbacks, and related corruption risks were embedded in state-backed project financing, while investors were misled about the use of proceeds, the transaction structure, and associated government debt obligations.
Case Summary
Credit Suisse admitted that investors were defrauded in connection with an USD 850 million loan for Mozambique’s EMATUM tuna project. The transaction concealed material information on banker kickbacks, corruption risks, and the use of proceeds, while enabling hidden public debt to accumulate outside proper scrutiny. The case resulted in coordinated criminal and civil resolutions, substantial penalties, and significant investor losses.
Risk Lesson
This case demonstrates how state-backed project financing can be structured to obscure public debt, conceal kickbacks, and mislead investors about the use of proceeds, transaction structure, and associated liabilities. It highlights warning signs such as opaque financing arrangements, incomplete disclosure of public debt obligations, unexplained intermediary payments, and weak oversight of borrowed funds.
Reference
U.S. Department of Justice. (2021). Credit Suisse resolves fraudulent Mozambique loan case in $547 million coordinated global resolution. Available from: https://www.justice.gov/archives/opa/pr/credit-suisse-resolves-fraudulent-mozambique-loan-case-547-million-coordinated-global