Ex-Credit Suisse bankers arrested on U.S. charges over Mozambique loans

Credit Suisse employs around 8,000 staff in London

Credit Suisse employs around 8,000 staff in London

Three former Credit Suisse (IOB: 0QP5.IL - news) bankers have been arrested in London over an alleged $2bn ($1.6bn) fraud, according to United States prosecutors.

The statement continued: "No action has been taken against Credit Suisse".

Mozambique's former finance minister, Manuel Chang, and a senior executive from the shipbuilder Privinvest Group, Jean Boustani, have also been arrested in South Africa and NY, respectively, in recent days.

Between 2013 and 2016, Credit Suisse and other banks arranged $2 billion loans for Mozambique state-owned companies.

Chang was arrested at OR Tambo International Airport about five days ago. The 63-year-old is accused of signing off guarantees to repay the loans as finance minister, but did not disclose them to other members of the government or global institutions.

The three men were released on bail after their arrest in the British capital on Thursday but may face extradition to the US. The bank said the trio had been "circumventing our internal controls" over the actions detailed in the case.

Chang is accused of overseeing the deal between 2013 and 2014.

It's alleged that Mr Pearse received over $NZ66 million in bribe and kickback payments through the scheme.

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Credit Suisse said it was deceived by its own staff and wasn't named as a defendant in the indictment.

Lawyers for the defendants could not immediately be reached for comment after business hours in NY and London. Boustani is a Lebanese citizen who worked for an Abu Dhabi-based contractor to the Mozambican companies, according to the indictment.

The US indictment says that through a series of financial transactions between approximately 2013 and 2016, more than Dollars 2 billion was borrowed through loans guaranteed by the Mozambican government. Subsidiaries of Privinvest have been named as primary suppliers to the Mozambican firms.

Mozambique - one of the most indebted countries in the world - admitted in 2016 to undisclosed lending, prompting the International Monetary Fund and foreign donors to cut off support, triggering a currency collapse and a default on its sovereign debt. I have consulted and please put 50 million chickens.

According to the indictment, Boustani forwarded the email to Privinvest personnel, stating: "50M for them and 12M for [Privinvest Co-Conspirator 1] (5%) = total of 62M on top".

Boustani's lawyer, Michael Schachter, didn't immediately respond to requests for comment.

"The indictment alleges that the former employees worked to defeat the bank's internal controls, acted out of a motive of personal profit, and sought to hide these activities from the bank", Karina Byrne, a spokeswoman for Credit Suisse, said in an email.

The loans were partly concealed from global donors and creditors, including the worldwide Monetary Fund.

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