A former Credit Suisse banker has given explosive testimony of a multi-million dollar bribery scheme involving a salesman from Middle East shipbuilding group Privinvest.
Andrew Pearse told a jury in Brooklyn, New York, that he pocketed at least $45m for arranging loans worth $2bn to companies in Mozambique, Bloomberg reported.
Pearse, 49, who has pleaded guilty to conspiracy, told the court that at least four other Credit Suisse bankers also took millions of dollars in bribes from Privinvest.
"They all played a role in ensuring the bank made the loans," Pearse testified Wednesday. "They provided the bank with false information about Privinvest."
Pearse is appearing as a witness against Jean Boustani, a Privinvest salesman.
Prosecutors allege Mozambican government officials, corporate executives and investment bankers stole about $200m.
But defence lawyer Michael Schachter told the court that Boustani had nothing to do with the sale or marketing of loans to investors, nor had he defrauded them.
He said Pearse had received the "sweetest of sweetheart deals" from the US and was testifying against Boustani to avoid prison.
The Credit Suisse loans were for projects including the building of a shipyard.
Surjan Singh and Datelina Subeva, two former Credit Suisse bankers who Pearse said were involved, will also appear for the prosecution.
Both have pleaded guilty.
President's son accused
The son of the country's then-president, Armando Guebuza, collected at least $50m in illegal payments, Pearse said.
"The son introduced the defendant to his father and to the ministers in the Mozambique government who were necessary for the project to proceed," Pearse said.
The son, Ndambi Guebuza, once demanded Boustani pay him an additional €11m ($12.23m), Pearse testified.
"He was living in the south of France and asked to buy a house for himself and a prostitute he'd fallen in love with," Pearse said.
Ndambi Guebuza was arrested by Mozambican authorities in February and is fighting the charges.
Pearse was due to continue his testimony on Thursday.
Privinvest, which is not charged, denies wrongdoing.
It said it delivered on its contractual commitments and "took extraordinary steps to help make the projects succeed.”
The company is an international shipbuilding group founded by Lebanese-born Iskandar Safa and his brother Akram Safa.
Headquartered in Abu Dhabi and Beirut, it owns facilities in the UK, France, Germany, the Mediterranean and the Middle East.
These include Nobiskrug, Hellenic Shipyards, Abu Dhabi Mar and Lindenau.
