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Willis Otieno - Explaining Tuna Bond Event in Mozambique 🇲🇿
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Willis Otieno - Explaining Tuna Bond Event in Mozambique
The Tuna Bond Scandal (also known as the “hidden debts” scandal) in Mozambique dates back to 2013/2014, involving up to $2 billion in deals agreed upon between state-owned Mozambican companies and Privinvest - funded through Credit Suisse.
Funding was given to support tuna fishing developments and, in extension, maritime security for locals and GDP growth. This project was advertised to boost the economy, create jobs, and foster tourism.
In a misleading nature, loans were secured through undisclosed government guarantees, with little oversight or due diligence conducted by lenders. Funds soon funded widespread corruption and fraudulent schemes, hidden from the public. These debts only came to light to the public in 2016.
When the scandal was exposed, it was revealed that the Mozambican government had borrowed billions from international banks without informing the public or the IMF. The revelation triggered a national financial crisis, as international donors and lenders withdrew their support. The Mozambican currency collapsed, and the national debt surged.
Several high-ranking officials, including former finance ministers, bankers, and businessmen, were implicated in the scandal, with some receiving prison sentences of up to 12 years. In 2019, Mozambique initiated further lawsuits, leading to investigations held in the U.S., U.K., and other countries, seeking to account for misappropriation of funds, and most importantly, those responsible.
More than a decade later and the scandal has severely damaged Mozambique’s economy and international reputation, with the country still dealing with its aftermath. Legal actions and efforts to recover lost funds continue.
This scandal highlights a critical lesson about the nature of wealth: it cannot be legitimately gained through deceit, theft, or personal greed. True and honest wealth is enduring and impactful, whereas ill-gotten gains bring conviction and deprive individuals of any peace.
📍Content from Lynn Ngugi on YouTube(“The Truth About The IMF…”)
#africanwealthdiaries #mozambique
The Tuna Bond Scandal (also known as the “hidden debts” scandal) in Mozambique dates back to 2013/2014, involving up to $2 billion in deals agreed upon between state-owned Mozambican companies and Privinvest - funded through Credit Suisse.
Funding was given to support tuna fishing developments and, in extension, maritime security for locals and GDP growth. This project was advertised to boost the economy, create jobs, and foster tourism.
In a misleading nature, loans were secured through undisclosed government guarantees, with little oversight or due diligence conducted by lenders. Funds soon funded widespread corruption and fraudulent schemes, hidden from the public. These debts only came to light to the public in 2016.
When the scandal was exposed, it was revealed that the Mozambican government had borrowed billions from international banks without informing the public or the IMF. The revelation triggered a national financial crisis, as international donors and lenders withdrew their support. The Mozambican currency collapsed, and the national debt surged.
Several high-ranking officials, including former finance ministers, bankers, and businessmen, were implicated in the scandal, with some receiving prison sentences of up to 12 years. In 2019, Mozambique initiated further lawsuits, leading to investigations held in the U.S., U.K., and other countries, seeking to account for misappropriation of funds, and most importantly, those responsible.
More than a decade later and the scandal has severely damaged Mozambique’s economy and international reputation, with the country still dealing with its aftermath. Legal actions and efforts to recover lost funds continue.
This scandal highlights a critical lesson about the nature of wealth: it cannot be legitimately gained through deceit, theft, or personal greed. True and honest wealth is enduring and impactful, whereas ill-gotten gains bring conviction and deprive individuals of any peace.
📍Content from Lynn Ngugi on YouTube(“The Truth About The IMF…”)
#africanwealthdiaries #mozambique
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