• Son of former Mozambique president, Armando Guebuza is among 20 persons charged for fraud.

    President Filipe Jacinto Nyusi is not leaving any stone un-turned in uncovering the culprits behind the fraud case. The case involves a fraud scam in which state-owned companies contracted $2 billion in debt for dubious projects.

    Although, many top government officials are involved in the case; it is the son of the former president that has drawn more attention.

    Now aged 76, Armando Emílio Guebuza is a respected Mozambican politician. He ruled the country as president for ten years from 2005 to 2015. 

    The final indictment of the 20 that follows an earlier one and arrests in February comes as the Southeast African country prepares for elections scheduled for October 15.

    The other accused persons include Armando Ndambi Guebuza, the former head of state security Gregorio Leao and Antonio Carlos do Rosario, chief executive of the three state companies for which the debt was contracted.

    Legal action might also be taken against the former finance minister, Manuel Chang.

    Mr Manuel Chan is wanted by Mozambican authorities and the U.S Justice Department for his alleged role in approving government guarantees for foreign debt of $2 billion in 2013-14.

    He is currently being held in South Africa on U.S. charges. His immunity had been revoked after he resigned as a lawmaker on July 19, and he will now face prosecution.

    The accused are charged with corruption, money laundering, criminal association, possession of prohibited weapons, blackmail, abuse of office and the falsification of documents, the attorney-general said in a statement.

    Defence counsel to the accused has issued a counter-statement through their lawyer, Alexandre Chivale saying:

    “The attorney-general issued the final indictment after four months, which is unlawful. Our clients should be released immediately on the grounds of that violation.”

    However, the prosecution counsel has been able to provide proof of fraud to the courts. A former Credit Suisse Group AG managing director, Andrew Pearse, has admitted taking millions of dollars in kickbacks to help arrange bank loans for the companies.

    According to reports, Proindicus SA was to perform coastal surveillance, Mocambicana de Atum SA, or Ematum, was to engage in tuna fishing, while Mozambique Asset Management, or MAM, was to build and maintain shipyards. None of the three has reported a profit, and their assets are lying idle.

    We will keep you updated as more events unfold.

    Header Image Credit: Club of Mozambique