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The UK’s Financial Conduct Authority (FCA) has officially banned two former Credit Suisse bankers following their convictions for accepting millions of dollars in bribes to facilitate corrupt loans for Mozambique.
Andrew Pearse and Surjan Singh, both of whom previously held senior positions at Credit Suisse, admitted in 2019 to receiving kickbacks in connection with approximately $1.3 billion in loans provided by the bank to Mozambique. These transactions have led to legal battles and regulatory penalties across multiple jurisdictions.
Pearse, who formerly led Credit Suisse’s Global Financing Group, confessed to accepting over $45 million in illicit payments. The FCA determined that he lacked integrity and subsequently prohibited him from working in the UK financial services sector. Singh, who admitted to receiving $5.7 million in bribes, was also barred from the industry.
A lawyer who represented both Pearse and Singh in a separate civil lawsuit did not immediately respond to a request for comment.
Both men played central roles in Mozambique’s so-called ‘tuna bonds’ scandal, in which the country obtained fraudulent loans from Credit Suisse and Russian lender VTB Bank. The funds were purportedly meant to support state-owned enterprises engaged in tuna fishing and maritime projects. However, a significant portion of the money was misappropriated.
The scandal involved loans and bonds arranged by major banks, including Credit Suisse, for Mozambican state-backed companies in 2013 and 2014. These funds were originally intended to finance the purchase of boats to develop Mozambique’s tuna fishing industry and enhance maritime security. The projects were backed by undisclosed state guarantees.
However, hundreds of millions of dollars vanished, and when the secret government debt was exposed in 2016, donors such as the International Monetary Fund (IMF) temporarily suspended financial aid. This decision triggered a collapse in Mozambique’s currency, widespread defaults, and significant economic instability.
Mozambique later filed a lawsuit in London against Emirati-Lebanese shipbuilding company Privinvest and its now-deceased owner, Iskandar Safa. The country alleged that bribes had been paid to officials and Credit Suisse bankers to secure favorable loan terms.
Last year, Mozambique secured a substantial victory in the case, though Privinvest is currently appealing the ruling.
Credit Suisse was also named in Mozambique’s lawsuit. On the eve of the trial, the bank reached a settlement with the country that also covered Pearse and Singh.
The collapse of the fraudulent loans resulted in billions of dollars in losses for the banks involved. Regulators in the UK and the US took action, with Credit Suisse paying a $475 million fine in 2021. VTB Bank’s UK subsidiary also faced a penalty of $6 million.
Following the US convictions of Pearse and Singh, the FCA moved to bar them from the financial industry. Both men had pleaded guilty in 2019 to conspiracy to commit money laundering and wire fraud.
“Mr Pearse and Mr Singh were experienced executives at Credit Suisse who admit to having received over $50m in kickbacks,” said Steve Smart, joint executive director of enforcement and market oversight at the FCA. “There is no place in our markets for those who engage in bribery and corruption.”
By fLEXI tEAM
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