Republic of Mozambique secures judgment for over US$2 billion in ‘tuna bonds’ litigation
On 29 July 2024, the Commercial Court (Mr Justice Robin Knowles CBE) gave judgment in The Republic of Mozambique v Credit Suisse International & Ors, a set of 12 Commercial Court proceedings concerning sovereign “Guarantees” purportedly executed by the Republic of Mozambique with a combined value of c. US$2 billion. The Republic contended that the Guarantees were procured by the bribery of, among others, the Republic’s then-Minister of Finance, Manuel Chang. It alleged that the Guarantees were void, voidable or unenforceable and brought claims in (among other things) the tort of bribery and unlawful means conspiracy, as well as comparable claims under Mozambican law.
At a 13-week trial beginning in October 2023, named as one of The Lawyer’s Top 20 Cases for 2023, the Commercial Court tried the Republic’s claims, together with various jurisdictional and State immunity challenges.
In its judgment handed down on 29 July 2024, the Court found for the Republic in its claims against the Privinvest parties and Mr Safa, holding that payments were made to or for the benefit of Manuel Chang constituting bribes under English law, and that the payments gave rise to civil liability under both English and Mozambican law.
The Court found that the Republic was entitled as against the Privinvest parties and Mr Safa to payment of c. US$825 million and to an indemnity in respect of future liabilities estimated at c. US$1.5 billion.
The judgment follows complex interlocutory proceedings over a number of years, including a strike out application in 2023 ([2023] EWHC 1650 (Comm)) (which the Republic successfully resisted) and a Supreme Court appeal in 2023 ([2023] Bus LR 1459) concerning s.9 of the Arbitration Act 1996 (in which the Republic also succeeded).
Read the judgment.
Ryan Ferro and Sarah Parker (instructed by Keith Oliver, Sarah Gabriel, Emma Ruane and Jason Woodland at Peters & Peters) appeared for the Republic of Mozambique, together with Joe Smouha KC, Ciaran Keller and Akash Sonecha of Essex Court Chambers, Jonathan Adkin KC and Zahler Bryan of Serle Court Chambers, Richard Blakeley KC of Brick Court Chambers, and Edward Gilmore of Twenty Essex.
Ryan Ferro also appeared for the Republic in the strike out application (and various other interlocutory applications in the lead up to trial) and in its successful Supreme Court appeal last year (led by Nathan Pillow KC of Essex Court Chambers and Richard Blakeley KC of Brick Court Chambers).
