Shipbuilder Seeks Compensation From Mozambique Over Hidden-Debt Scandal

  • Company files counter claim after Mozambique took it to court
  • Legal actions stem from $2 billion hidden-debts scandal
Lock
This article is for subscribers only.

Privinvest Group began arbitration against three state-owned Mozambican companies to seek at least $200 million in compensation for losses the shipbuilder says it incurred after contractual breaches.

The legal action marks a step change in Privinvest’s response to charges against employees including salesman Jean Boustani by the U.S. Department of Justice. It also signals a counter-strike against the southeast African nation that took it to court in London in February. The DOJ alleges Boustani and others stole about $200 million in Mozambique-loan proceeds in an indictment that stems from Mozambique’s $2 billion hidden-debt scandal.