Court Rejects Appeal in Mozambique Debt Case
England and Wales Court of Appeal upholds a ruling that lets Mozambique pursue assets tied to the late Iskandar Safa and the Privinvest group.
Updated on Nov. 4, 2026 in Financial Crime
Judges at the Court of Appeal of England and Wales rejected an appeal by Clara Martinez Thedy de Safa on 21 October. The ruling keeps in place a July 2024 judgment ordering the Privinvest group to pay Mozambique about US$1.9 billion.
Why it matters
The decision lets Mozambique pursue assets of Iskandar Safa's estate and companies in the Privinvest shipbuilding group to recover losses from hidden state debts. The case stems from loans of more than US$2 billion contracted in 2013 and 2014 that triggered a severe financial crisis after they were disclosed in 2016.
The Court of Appeal has rejected Clara Martinez Thedy de Safa's appeal, leaving the July 2024 judgment in place. The ruling may still face a further appeal in London, and former Finance Minister Manuel Chang has already been convicted in the United States in the same case.
The players
Mozambique
Mozambique is the southeast African nation that is pursuing compensation over hidden state debts contracted in 2013 and 2014.
Privinvest
Privinvest is a shipbuilding group whose companies were found by a London court to have participated in corrupting Mozambican officials.
Credit Suisse
Credit Suisse is the Swiss bank that was one of the lenders to state-owned companies in Mozambique's hidden loans.
VTB
VTB is the Russian state-controlled bank that was one of the lenders to Mozambique's state-owned companies in the hidden loans.
Manuel Chang
Manuel Chang is Mozambique's former Finance Minister who has been convicted in the United States in the same case.
The details
The London Commercial Court concluded that Iskandar Safa and Privinvest companies participated in corrupting Mozambican officials to secure State guarantees for loans from Credit Suisse and VTB. Mozambique reached out-of-court settlements with banks, reducing its exposure to the debt by 84%.
Timeline
2013-2014: Loans worth more than US$2 billion were contracted from Credit Suisse and VTB.
2016: The hidden debts were disclosed, triggering a severe financial crisis in Mozambique.
January 2024: Iskandar Safa died.
July 2024: The London Commercial Court ordered the Privinvest group to pay about US$1.9 billion.
21 October 2026: The Court of Appeal rejected Clara Martinez Thedy de Safa's appeal.
Legal Context
The ruling follows the 2016 disclosure of Mozambique's hidden state debts, which triggered a severe financial crisis in the country. It extends the legal fallout from that disclosure to the estate of Iskandar Safa and companies in the Privinvest group.
Recovered funds could affect Mozambique's public finances and the country's efforts to manage its debt burden. Readers following international asset recovery cases should watch whether the ruling is challenged further in London.
The takeaway
Cases involving hidden sovereign debt show how loans obtained through corruption can be pursued across borders years after they are contracted. Developments in this case may influence how similar state debt disputes are handled.
Further reading
For related coverage, see Financial Crime reporting on state debt disputes and asset recovery.
Source note: This article includes information reported by Mozambique.
