Mozambique's blockbuster lawsuit against Credit Suisse (UBSG.S) and others over the $2 billion "tuna bonds" scandal can proceed to trial, a London judge ruled on Monday, despite complaints the African nation has failed to fully disclose documents.
High Court Judge Robin Knowles said it was not just, proportionate or necessary to strike out the complex case, which encompasses 11 sets of proceedings, three months before a London trial scheduled to start on Oct. 2.
But he warned: "At trial, all alternatives, including to strike out and in whole or in part, remain available."
The case dates back to 2013 and three deals between state-owned Mozambican companies and shipbuilder Privinvest - funded in part by loans and bonds from Credit Suisse and backed by undisclosed Mozambican government guarantees - ostensibly to develop the fishing industry and for maritime security.
But hundreds of millions of dollars went missing and, when the state loan guarantees became public in 2016, donors such as the International Monetary Fund halted support and triggered a currency collapse and debt crisis.
The judge first raised the prospect of a strike-out in March, when he ordered Mozambique to ensure access to relevant documents held in key state offices such as the Office of President and SISE, the state security service.
Credit Suisse, UAE-Lebanese Privinvest and others argued that a lack of "adequate" disclosure jeopardised a fair trial.
Under English litigation rules, each party has to disclose documents on which they rely for their case, those that might damage their own case and those that support the case of others.
A spokesperson for Credit Suisse said the bank noted the judgment and "continues to defend itself". Privinvest and a spokesperson for the Mozambican finance ministry did not immediately respond to a request for comment.
The latest judgment comes as Swiss bank UBS grapples with integrating its cross-town peer, and its inherited legacy, after an emergency rescue in March.
Lawyers for Mozambique have argued that state secrecy challenges prevent some documents from being disclosed but urged the judge to allow the case to proceed because it concerns "what is said to be an international fraud and corruption of public officials on a massive scale".
Three former bankers, who have pleaded guilty in the United States to handling kickbacks, hid their misconduct from the bank, it has said.
Privinvest has said it delivered on its obligations under the shipping contracts and any payments it made were legal under Mozambican law.
