The High Court has delivered a landmark judgment in favour of the Republic of Mozambique, awarding damages and an indemnity for future losses totalling over $2 billion against the Privinvest Group in relation to events which have become known as the “tuna bonds” or “hidden debts” scandal. The proceedings concerned 3 sovereign guarantees purportedly granted by Mozambique to secure funding for maritime protection and tuna fishing supply contracts. The Republic of Mozambique contended that these guarantees had been procured by the bribery, amongst others, of the Minister of Finance, Mr Chang. Following a 13 week trial in the Commercial Court, the Hon. Mr Justice Knowles CBE held that payments made by or on behalf of the Privinvest Group and Mr Safa to or for the benefit of Mr Chang were bribes.

Beyond the finding of bribery, Knowles J stated in broader terms:

“There was corruption. But this is also a case about an overall absence of standards that went far wider than the instances of corruption. There were those prepared to prey on weakness and inexperience. Those who saw the opportunity to make money with no regard to whether the Projects would fail and what that would mean for others. Those who set their sights on self interest and on personal financial reward, and put those over any sense of responsibility. There were no searching questions about preparation for supply, or the projections. Sometimes one piece of behaviour below proper standards enabled another with ultimate consequences that were truly serious.

Some might be able to say that the law and any relevant regulatory framework did not require more of them than they did. But that is not my point. Those who did the worst may suffer legal or regulatory consequences, but what about the others? Law and regulation alone cannot do all the heavy lifting, even where the remarkable common law is available. They are not the only source of standards. A far greater sense of responsibility was required. The case shows why ethics is so critical in finance, in commerce and in state administration, and how bad things can get without ethics.”

The High Court's decision marks a significant victory for the Republic of Mozambique in its pursuit of justice for the ‘tuna bonds’ scandal.

The Republic of Mozambique was represented by Jonathan Adkin KC and Zahler Bryan of Serle Court; Joe Smouha KC, Ciaran Keller, and Akash Sonecha of Essex Court Chambers; Richard Blakeley KC of Brick Court Chambers; Ryan Ferro and Sarah Parker of 3VB; and Edward Gilmore of Twenty Essex. The team was instructed by Keith Oliver, Sarah Gabriel, Jason Woodland  and Emma Ruane of Peters & Peters Solicitors LLP.