Between 2013 and March 2017, Credit Suisse, CSSEL, and co-conspirators made material misrepresentations and omissions regarding:
- risks associated with the use of loan proceeds
- the payment of kickbacks to CSSEL bankers and bribes to Mozambican officials
- the existence and maturity dates of debt owed by Mozambique
The global financial institution told investors that EMATUM will only use the loan proceeds for the tuna fishing project. However, co-conspirators diverted loan proceeds from investors to an EMATUM contractor that paid around $50 million in kickbacks to CSSEL bankers and approximately $150 million in bribes to Mozambican government officials.
Credit Suisse identified red flags including the significant corruption concerns before and during the EMATUM financing. It was also aware that EMATUM had problems servicing the loan, raising the risk of default. Additionally, the global financial institution knew that there is a substantial shortfall ($265 to $394 million) between the funds raised for the EMATUM loan and the fair market value of its boats, infrastructure, and training sold by its contractor.
