Son of ex-Mozambican president gets 12-year jail term for graft: Report

By James Tasamba

KIGALI, Rwanda (AA) - A court in Mozambique on Wednesday handed a 12-year jail term to the son of former country’s President Armando Guebuza after finding him guilty in a “hidden debts” corruption scandal, local media reported.

Armando Ndambi Guebuza was found guilty of embezzlement, money laundering and criminal association in a case, which defrauded the government of more than $2.7 billion, Judge Efigenio Baptista said, according to Noticias Online website.

The court ruled that “Ndambi wrongfully benefited from $33 million that the Mozambican people badly needed.”

During the trial at Maputo City Court sitting on the outskirts of the capital Maputo, Ndambi said he was being targeted for political reasons.

Ndambi, the oldest son of the former Mozambican leader Guebuza, was sentenced along with 10 other defendants, who were handed sentences ranging from 10 to 12-year jail terms and varying fines.

Former head of security and intelligence Gregorio Leao and former head of the security service’s economic intelligence division Antonio do Rosario were also handed 12 years in prison each.

The court acquitted eight defendants for lack of evidence.

The defendants were charged with embezzlement, falsification of documents, abuse of office and money laundering.

“It is proven that the defendants swindled state funds loaned by Credit Suisse and VTB which were supposed to be used to protect the country's special economic zone,” the court ruled.

Guebuza was in court last week when the sentencing proceedings began.

The scandal arose after three newly state-owned companies in 2013 and 2014 reportedly acquired more than $2 billion in loans from international banks with the Mozambican government as guarantor – most of it taken without the approval of the country’s parliament.

An independent audit in 2017 revealed $500 million of the money went missing under unclear circumstances.

In view of the scandal, donors including the IMF cut funding to the country, triggering an economic crisis following an inflation surge and currency collapse, after the government admitted to the borrowing.

The money was reportedly used to purchase a large tuna factory and a maritime security fleet but also used to fund other deals involving public-private companies.

Three Mozambican companies, including Proindicus, Ematum (Mozambique Tuna Company) and Mozambique Asset Management (MAM) secured the loans from Credit Suisse and the Russian bank VTB.

Three former Credit Suisse bankers have pleaded guilty to US charges of money laundering over the case. The Mozambican government, on the other hand, sued Credit Suisse in a London court, seeking nullification of some of the loans and compensation.

But Credit Suisse has claimed the former employees acted without the company’s knowledge.