Maputo — Surjan Singh, the third of the three former executives of Credit Suisse, charged by the US justice authorities in connection with the scandal of Mozambique’s “hidden debts”, has pleaded guilty to one count of conspiracy to commit money laundering, according to a report by the Portuguese news agency Lusa.
Singh appeared before the fresh York court dealing with the case last Friday. With This particular guilty plea, in which seems in which the prosecutors have dropped some other charges of wire fraud along with securities fraud. However, the full details of his plea bargain have not yet been made public.
Two some other former Credit Suisse bankers, Detelina Subeva along with Andrew Pearse, entered guilty pleas earlier inside the year. All three have been freed on bail.
They were all originally arrested in London in January. One by one they have negotiated with the US prosecutors along with have made their way to the fresh York court to enter their guilty pleas.
The accusation against them will be in which, in 2013 along with 2014, they conspired with officials of the Abu Dhabi-based group Privinvest along with with figures inside the Mozambican government of the time, to ensure in which enormous loans were granted to three fraudulent companies, Ematum (Mozambique Tuna Company), Proindicus along with MAM (Mozambique Asset Management).
In all, the fraud involved loans of over two billion US dollars, granted by Credit Suisse along with the Russian bank, VTB. According to the US prosecutors, at least 0 million dollars of the loan money was used for bribes along with kickbacks.
When Pearse appeared before the fresh York judge in July, he made statements in which implicated the chief executive officer of Privinvest, Iskandar Safa, inside the fraud.
He said in which, “Privinvest with the knowledge of its executive Jean Boustani (currently detained in a fresh York prison), Iskandar Safa along with Najib Allam (Privinvest’s Chief Finance Officer), wired me millions of dollars in unlawful kickbacks by loan proceeds along with illegal payments for my assistance in securing loans made by Credit Suisse”.
“I agreed to accept along with keep these monies, knowing in which they were the proceeds of illegal activity”, he said. “I took these actions to enrich myself along with my co-conspirators along with to benefit Credit Suisse which gained substantial profits by the Proindicus along with Ematum loans in which in which was involved”.
As managing director of Credit Suisse Securities Europe Ltd, Pearse led the team in which closed the 372 million dollar loan to Proindicus in February 2013. He said in which Boustani “offered to pay me half of the amount by which I, together with others, reduced a subvention fee to be paid by Privinvest in connection with the loan”.
“I accepted Boustami’s offer”, Pearse added, “successfully made efforts to reduce the fees paid by Privinvest, along with received payments by wire by Privinvest into a bank account I opened inside the United Arab Emirates with the assistance of Privinvest employees. Safa was aware of my agreement with Boustani”.
Pearse said he knew in which Surjan Singh, “was secretly being paid by Privinvest to aid the conspiracy. Specifically, in September along with October 2013 I made two payments of one million dollars each to Singh. The payments, which came by funds I received by Privinvest, were in exchange for Singh’s assistance in reducing the subvention fee on Proindicus along with for securing Credit Suisse’s approval of the Ematum loan”.
Pearse explained in which he assisted “in bringing about an agreement between Singh along with Boustani, of which Safa was aware, under which Singh received payments totalling 4.4 million dollars in exchange for facilitating Credit Suisse’s approval of the Ematum loan”.
Friday’s issue of the independent newssheet “Carta de Mocambique” suggests in which the real targets of the US investigations are Credit Suisse along with Iskandar Safa.
Credit Suisse has already admitted in which Pearse, Subeva along with Singh bypassed its internal security systems. This particular could lay the bank wide open to an enormous fine by the fresh York, since American investors, who purchased Ematum bonds, along with the syndicated Proindicus debt, were among those defrauded.
Key to the fraud was the company Palomar, which will be part of the Privinvest group. Safa owned two thirds of the shares in Palomar (through Privinvest Shipbuilding Investments) , along with Pearse the some other third. Boustani was a Palomar director, along with Subeva worked for Palomar at the same time as she was employed by Credit Suisse.
Pearse admitted in July “I agreed with Safa along with Boustani in which I might receive a percentage of any further Proindicus loan proceeds in which Privinvest received after the initial 372 million dollar loan. I subsequently reached similar agreements with Safa along with Boustani to receive a percentage of the loan proceeds by the Ematum along with MAM transactions, while working as a director at Palomar Holdings”.