Shipbuilder Seeks Compensation From Mozambique Over Hidden-Debt Scandal

Privinvest Group began arbitration proceedings against three state-owned Mozambican companies to seek compensation for losses the shipbuilder says it incurred after contractual breaches, Bloomberg News reported. The legal action marks a step change in Privinvest’s response to charges against employees including salesman Jean Boustani by the U.S. Department of Justice. The DOJ alleges Boustani and others stole about $200 million in Mozambique-loan proceeds in an indictment that stems from Mozambique’s $2 billion hidden-debt scandal. Privinvest is targeting the state-owned entities for breaching supply agreements, said Jeffrey Birnbaum, a spokesman for the company. “For three months or so, Privinvest has been largely silent in the face of a false narrative about its activities in Mozambique and it doesn’t wish to continue to be silent,” Birnbaum said by phone Monday from Washington, D.C. Read more