An Indian-origin man is among the three ex-Credit Suisse bankers arrested in the UK for their alleged role in a $2 billion USD scam connected to state-owned firms in the impoverished nation of Mozambique.
According to US authorities, the three ex-associates Andrew Pearse, Surjan Singh and Detelina Subeva skimmed at least US$200 million from secret $2 billion loans from the Mozambique government to fund fraudulent development projects in the African nation.
The former finance minister of Mozambique, Manuel Chang, has also been charged in connection with the scandal.
The US indictment says three state-owned companies borrowed over USD 2 billion in loans guaranteed by the Mozambique government through a series of financial transactions between 2013 and 2016.
Prosecutors claim that the companies created to undertake naval projects were “fronts” for the accused to enrich themselves and the people involved.
It was also revealed that the money borrowed was never transferred to Mozambique but to a company, Privinvest, in Abu Dhabi.
The US authorities further alleged that the defendants defrauded the investors by masking the misuse of the funds and misleading foreign donors particularly in the United States about Mozambique's creditworthiness.
While Pearse and Singh were managing directors at Credit Suisse, Subeva was the vice-president at the Swiss investment bank.
All three men have been released on bail in London and are currently awaiting extradition to the United States to face the charges.
