Going Down for Mozambique Maritime Scandal

An ex-Credit Suisse Group AG banker became the first person to plead guilty in what U.S. prosecutors called a $2 billion fraud and money-laundering scam tied to loans to Mozambique that were used to pay bribes and kickbacks. Detelina Subeva, 37, a former vice president in the bank’s global financing unit, pleaded guilty on Monday to one count of conspiracy to launder funds. The U.S. agreed to drop three other conspiracy charges against Subeva, who’s one of three Credit Suisse bankers accused of working with Mozambique’s ex-finance minister in a secret kickback scheme. The case centers on deals that allowed Mozambique to borrow $2 billion for maritime projects and coastline protection in 2013. The bonds sold to finance the loans were marketed to international investors to aid the economy and thwart sea piracy, but prosecutors say at least $200 million were plundered in the form of bribes and kickbacks.

SOURCES: BLOOMBERG

Posted inNEWS