US jury clears Privinvest salesman in ‘tuna bond’ trial
Acquittal of Jean Boustani in corruption case in Mozambique a blow to prosecutors
A central figure in the multibillion-dollar “tuna bonds” scandal in the southern African nation of Mozambique was cleared of all charges by a jury in New York on Monday.
Jean Boustani, a Lebanese salesman for Privinvest, an Abu Dhabi-based shipbuilder, was acquitted of three counts of conspiracy to commit fraud and money laundering.
His acquittal is a blow to US prosecutors and a victory for Mr Boustani and Privinvest, who have consistently denied wrongdoing.
“We are gratified and relieved, and thank the jury for its service,” said Michael Schachter, an attorney for Mr Boustani.
“The jury’s verdict completely exonerates Mr Boustani and confirms what Privinvest has said for the past four years — there was absolutely no wrongdoing with respect to the Mozambique maritime projects,” the shipbuilder said in a statement.
A spokesman for the US attorney’s office for the eastern district of New York declined to comment.
The verdict came after three former Credit Suisse bankers pleaded guilty for their role in diverting hundreds of millions of dollars from $2bn of loans for maritime projects in Mozambique in order to pay kickbacks, including to themselves.
Two of the bankers, Andrew Pearse and Surjan Singh, took the stand in the trial and told the jury they had received about $50m in payments from Privinvest.
Mr Pearse testified that in 2013 he had been offered a bribe by Mr Boustani to secure a reduction on the fees for a Credit Suisse loan. The conversation happened poolside at a hotel in Mozambique, he testified.
“I remember it very clearly because it was a significant point in my life where it was the first time I’d been offered a kickback,” Mr Pearse testified.
Mr Boustani disputed the claims when he took the stand, saying the bankers were simply paid to join a Privinvest subsidiary.
The case had centred on whether US-based investors in the loans, which Mozambique had guaranteed and later defaulted on, had been defrauded. The loans had been arranged by Credit Suisse and Russian bank VTB between 2013 and 2016.
The Privinvest salesman’s attorneys argued he had nothing to do with the disclosures made to investors who would have known that Mozambique was a country where corruption was common.
“Jean has sold nothing to investors, he was a salesman only to Mozambique,” said Randall Jackson, another attorney for Mr Boustani, in closing arguments last month.
US prosecutors have charged eight individuals in connection with the so-called tuna bonds scandal, including three former Mozambique government officials and another executive at Privinvest in addition to Mr Boustani, the only defendant so far to face trial.
Mozambique, one of the world’s poorest nations, was thrown into a deep financial crisis by the collapse of the tuna bonds and the revelation in 2016 of other hidden debts relating to the maritime projects.
The ruling Frelimo party of President Filipe Nyusi, which won re-election last month, has been rocked by evidence of bribes paid to officials in connection with the tuna bonds.