Connect with us

World

Hidden Debts: Credit Suisse, Russia’s VTB Agree to Pay Fines

Published

on

Russian Bank VTB Hidden Debts Credit Suisse

By Kester Kenn Klomegah

Russia’s VTB Capital and Credit Suisse have agreed to pay fines to the United States and British authorities for their role in a business fraud, which has been known as the “hidden debts” scandal since 2013 in Maputo, Mozambique.

According to reports, after the final ruling on the case the US Securities and Exchange Commission (SEC) announced that Credit Suisse has agreed to pay almost $475 million to the United States and British authorities “for fraudulently misleading investors and violating the Foreign Corrupt Practices Act (FCPA). Russia’s VTB Capital, currently under sanctions, will pay a $4 million penalty.

According to reports on the “hidden debts” scandal, many United States investors had lost money in what was described as a $2 billion loan scam involving two banks, Credit Suisse and Russia’s VTB bank. The secrecy and corruption surrounding the loans dealt devastating blows to Mozambique’s credibility and reputation. It was the Wall Street Journal that first revealed the hidden debt in April 2016.

The fraud and corruption involved millions of dollars in bribes to sign off on about $2.2 billion in loans from Credit Suisse and the Russian VTB bank to Mozambican government agencies to buy fishing trawlers and military patrol vessels in 2013 and 2014. It involved three security-linked Mozambican companies, Proindicus, Ematum (Mozambique Tuna Company) and MAM (Mozambique Asset Management).

The loans were only possible because of guarantees issued illegally by the government of the time under the then president Armando Guebuza. The loans and the guarantees violated the 2013 and 2014 budget laws, and the Mozambican Constitution.

“A London-based subsidiary of Russian bank VTB separately agreed to pay more than $6 million to settle SEC charges related to its role in misleading investors in a second 2016 bond offering,” the US Securities and Exchange Commission announced in a statement.

“VTB Capital consented to an SEC order finding that it violated negligence-based antifraud provisions of the federal securities laws. The VTB agreed to pay “without admitting or denying” the charges of “misleading investors in a second 2016 bond offering,”

According to the SEC order, “the second offering as structured by VTB Capital and Credit Suisse allowed investors to exchange their notes in an earlier bond offering for new sovereign bonds issued directly by the government of Mozambique”.

“The SEC found that the offering materials distributed and marketed by Credit Suisse and VTB Capital failed to disclose the true nature of Mozambique’s debt and the high risk of default on the bonds. The offering materials further failed to disclose Credit Suisse’s discovery that significant funds from the earlier offering had been diverted away from the intended use of proceeds that were disclosed to investors. Mozambique later defaulted on the financings after the full extent of ‘secret debt’ was revealed,” the SEC press release reads.

On October 19, VTB Capital said in an official media release that it had entered into a settlement with the United States Securities and Exchange Commission (SEC) to end the SEC’s investigation into VTB’s involvement in a series of transactions with the Republic of Mozambique. VTB did not admit or deny the allegations in the SEC’s order.

In its order, the SEC expressly recognizes that VTB had no knowledge of or involvement in the corrupt kickback scheme hatched by Mozambican officials and others. The SEC also did not find that VTB engaged in intentional misconduct or fraud.

Instead, the SEC’s findings with respect to VTB centre on alleged disclosure failures in a single transaction: the 2016 EMATUM Exchange offering. Specifically, the SEC has found that VTB was negligent because the offering materials contained misleading statements by Mozambique and omissions that VTB failed to prevent. These alleged disclosure failures, the SEC found, related to (1) the full nature of Mozambique’s indebtedness, and (2) VTB’s role as a lender on two earlier transactions.

The SEC order recognizes the difficult position which VTB was put in by senior Mozambique officials during the offering process, and that VTB itself was defrauded by Mozambique officials. Neither VTB nor any of its personnel was charged with criminal conduct by the United States Department of Justice. No VTB personnel were charged by the SEC in today’s order.

VTB takes the settlement seriously and fully cooperated with the SEC investigation. The settlement announced today marks the end of the SEC’s investigation into VTB’s role in the Mozambique transactions. VTB seeks to hold itself to the highest standards and remains committed to ensuring that VTB clients have the information they need to invest in today’s markets.

VTB has for years, cooperated extensively with all government enquiries. VTB also tried for years to cooperate with the Mozambican government to find a constructive solution to the country’s debt situation. Those efforts to date have been unsuccessful. Accordingly, in 2020, VTB commenced legal proceedings in the English courts to recover the sums due to it. VTB expects to prevail.

VTB will pay a $4 million penalty and disgorge $2 million in fees.

Comment on behalf of VTB Capital:

“The settlement reached today marks the end of the SEC’s investigation into VTB’s role in the Mozambique transactions. As we have previously said, VTB took significant steps to ensure the accuracy of the Eurobond disclosure, which were met with resistance and pressure from a number of other parties engaged in the deal, as the SEC recognized.

“We’d like to emphasize that throughout the numerous international litigations and investigations related to the Mozambique loans, none of our employees has been charged with unlawful conduct.

“VTB operates in a completely open and transparent manner observing the highest levels of corporate governance and compliance in our daily operations, and we remain confident that VTB acted responsibly in this matter, notwithstanding an extensive scheme perpetrated by others. We are confident of our legal position and look forward to finding a solution in the remaining proceedings related to this situation,” according to the VTB Bank.

6 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

World

Essent Slashes Contact Centre Technology Costs by 50%

Published

on

Essent Energy provider

By Modupe Gbadeyanka

The Netherlands’ largest energy provider, Essent, has cut the technology costs of its contact centre infrastructure by half.

The organisation, which serves 2.5 million customers, recorded zero critical incidents post-migration and improved agent workplace satisfaction by 36 per cent.

The migration was delivered in partnership with AI-first customer experience transformation specialists, Sabio Group, and was completed in under 12 weeks for an operation spanning over 1,000 agents across two locations.

Agents were forced to juggle multiple disconnected screens simultaneously — a workflow that was as inefficient as it was stressful.

“Our agents were constantly working with different screens — multiple chat instances open at once, multiple agent desktop instances. It was messy, and in some cases, quite stressful,” SAFe Product Manager for Customer Interaction, Omnichannel and Digital Transformation at Essent, Michiel Kouijzer, stated.

“A lot of colleagues were saying I was mad for even suggesting this approach. It kind of feels like a victory on a personal level that it did work out. You just have to be a little ambitious — and have the right expert partner who can make it work,” Kouijzer added.

With stable cloud infrastructure now firmly in place, Essent is turning its attention to the capabilities that were impossible in its legacy environment: AI-powered call summarisation, agentic customer self-service, and next-generation workforce optimisation.

Rather than a reckless ‘big bang’ cutover that could have affected service to millions of households, Sabio engineered a phased migration strategy — beginning with Essent’s SME segment to validate technical readiness before scaling to the full enterprise operation.

“This project showcases Sabio’s unique position in the contact centre technology landscape. We’re not just moving Essent to the cloud — we’re establishing a foundation for continuous improvement in their customer experience delivery,” the Country Manager for Sabio Group Benelux, Wouter Bakker, commented.

Continue Reading

World

Africa: A New Market for Russian Business

Published

on

New Market for Russian Business

By Kestér Kenn Klomegâh

On April 11, the presentation of the book “Africa: a new market for Russian business” took place, which aroused lively diverse interests among business representatives, entrepreneurs and employees of federal structures of Russia. The event was dedicated to discussing the prospects of Russian companies entering the African market and became a platform for the exchange of views and experiences.

Participating guests, packed in the small hall, included:

– representatives of business circles,

– entrepreneurs interested in new directions of development,

– employees of federal agencies curating foreign economic activity.

The presentation was held in a constructive and friendly atmosphere. The author of the book, Serge Fokas Odunlami, detailed the key ideas and conclusions presented in the publication. Particular attention was paid to the practical aspects of operating in the African market, as well as the analysis of opportunities and risks for Russian companies.

During the lively discussion, participants asked questions, shared their experiences and made suggestions for developing cooperation with African countries. This format allowed not only to get acquainted with the content of the book, but also to discuss topical issues of expanding business relations.

Meaning of the book: The publication, “Africa: a new market for Russian business” offers readers not only analytical, but also practical recommendations on investment and market trends, and how to enter the African market. The book will be a useful tool for those considering Africa as a promising destination for investment and business development.

The presentation of the book became a significant event for the Russian business community interested in expanding cooperation with Africa. Serge Fokas Odunlami introduced the participants to the new edition, which is a comprehensive business guide that gives an impetus for dialogue and implementation of joint entrepreneurial projects and corporate initiatives across Africa.

Continue Reading

World

Ryan Collyer Reveals Reasons Behind Africa’s Significant Energy Deficit

Published

on

Ryan Collyer Rosatom CEO

By Kestér Kenn Klomegâh

Perhaps Russia’s state nuclear corporation, Rosatom, is at the frontline, shaping Africa’s energy security. And African countries are also accelerating coordinated efforts to build nuclear power plants primarily to supply their energy, which will drive industrialisation and boost power capacity for domestic utilisation.

Energy experts say adopting nuclear can further support a diverse energy mix, reduce reliance on fossil fuels, and help across the continent. Over the past two decades, Russia has been collaborating with African countries, adopting energy initiatives to provide power to approximately half the continent’s population, and making it an important component of Africa’s future energy strategy and solutions. At this point, however, it is necessary to underline the irreversible fact that Russia’s ultimate goal is to ensure long-term African energy security.

In this interview, Rosatom’s Chief Executive Director for Central and Southern Africa, Ryan Collyer, reiterates the strategic importance of Russia-Africa’s energy cooperation through strengthening bilateral agreements on collaboration on the peaceful use of nuclear energy. Collyer explains that the Russian approach is its ability to offer an integrated solution, from technology and financing to training and localisation. According to him, partnerships must be built on mutual benefit and on the principle of transparency. Here follows the interview excerpts:

What are the expectations, specifically in the nuclear energy sphere, for Africa during the forthcoming Russia–Africa Summit scheduled for 2026?

The expectation is a clear shift from dialogue to delivery. Over the past few years, we have built a strong foundation through agreements, feasibility discussions and partnerships. The 2026 Russia–Africa Summit is an opportunity to demonstrate tangible progress.

In practical terms, I would expect greater focus on implementation readiness. That includes regulatory development, human capital, financing models and localisation strategies. We also expect to see more structured cooperation in areas like small modular reactors, which are particularly relevant for many African grids, as well as stronger emphasis on education and training partnerships. Ultimately, the success of the Summit will be measured by how many initiatives move from concept to execution.

Why, despite many bilateral agreements, is Africa still experiencing a significant energy deficit?

Africa’s energy deficit is not a result of a lack of ambition or agreements. It is primarily a question of scale, financing and infrastructure readiness. Energy projects, especially large-scale ones, require long-term investment, stable policy frameworks and strong institutional capacity. Many countries are working under fiscal constraints, and at the same time, demand is growing rapidly due to population growth and urbanisation. So, even when progress is made, it can be outpaced by rising demand.

It is also important to understand that many agreements are not meant to deliver immediate infrastructure. They are part of a longer preparation cycle, including feasibility studies, regulatory development and workforce training. Nuclear projects in particular are long-term by nature, and while this can be perceived as slow progress, it is actually a reflection of the level of diligence required.

How do you assess the contribution of nuclear energy to climate change mitigation and technological development in Africa?

Nuclear energy plays a dual role in Africa’s development, both as a clean energy source and as a driver of technological advancement. From a climate perspective, nuclear provides reliable, low-carbon electricity at scale. Africa needs a significant expansion of its energy capacity to support economic growth, and this growth must be both stable and sustainable.

Nuclear allows countries to increase power generation without increasing emissions, while ensuring a consistent baseload supply. At the same time, its impact goes beyond electricity. Nuclear technologies support medicine, agriculture, water management and industrial processes. Across Africa, they are already used in areas such as cancer treatment, food preservation and environmental monitoring, making nuclear a broader platform for sustainable development.

In this context, Rosatom offers integrated solutions across the full nuclear value chain. This includes large-scale and small modular reactors, as well as advanced non-power applications such as nuclear medicine and irradiation technologies. Our focus is on delivering practical, tailored solutions that support long-term development and local capacity building.

Is Africa unprepared to deal with nuclear waste, as some critics suggest?

I would say that preparedness varies across countries, but it would be inaccurate to suggest that the issue is being ignored. Responsible nuclear programmes require a comprehensive approach to waste management from the very beginning. This includes legal frameworks, regulatory oversight, storage solutions and long-term planning. These elements are part of international best practice and are supported by organisations such as the IAEA. What is true is that this topic is often undercommunicated in the public space. It should be discussed more openly, because transparency builds trust.

Countries that are serious about nuclear energy understand that waste management is not optional. It is a core component of the programme, and it is addressed in parallel with all other aspects of development. Rosatom offers comprehensive solutions for spent fuel and radioactive waste management. These include technologies for safe storage, transportation, reprocessing and recycling of nuclear materials. In fact, advanced reprocessing solutions allow for the reuse of valuable components of spent fuel, significantly reducing the volume of waste and improving the overall sustainability of the nuclear cycle.

Nuclear power remains controversial. Why do you believe it is important for Africa, and what role does it play in the energy mix?

Africa needs a balanced and pragmatic energy strategy. The conversation should not be about choosing one technology over another, but about building an energy mix that is reliable, affordable and sustainable. Renewables will play a critical role and are already expanding rapidly. However, they are variable by nature. For industrialisation, countries also need stable, continuous power that is baseload. This is where nuclear can make a meaningful contribution. A diversified energy mix that includes renewables, nuclear, hydropower and other sources allows countries to reduce risk, improve energy security and support long-term economic growth.

Nuclear is not the only solution, but it is an important part of a resilient system, especially for countries with growing industrial ambitions. In this context, Rosatom is able to support countries with integrated energy solutions that combine reliability, sustainability and long-term partnership models, tailored to national development priorities.

How can we shift public perception, given the legacy of Chornobyl and Fukushima?

We cannot rewrite history, and we should not try to. Events like Chornobyl and Fukushima shaped public perception for a reason. The starting point is respect for those concerns, not dismissal. At the same time, what is often missing in the conversation is what happened after those events. Chornobyl, in particular, fundamentally reshaped the entire philosophy of nuclear safety. It led to a complete rethinking of reactor design, emergency response, and regulatory oversight. Independent regulators were strengthened, safety responsibilities were clearly separated from operators, and safety culture became not just a principle but a legal requirement supported by continuous drills and probabilistic risk assessments.

Technologically, the industry also changed dramatically. Modern reactors are designed to withstand even worst-case scenarios, with multi-layered “defence-in-depth” systems, core melt traps, and passive safety mechanisms that rely on natural physical processes rather than human intervention. These are not incremental improvements. They are the direct result of lessons learned at a very high cost. But facts alone do not change perception. People do not build trust through reports. They build it through experience and transparency. That is why our approach in Africa is deliberately open.

We create opportunities for students, young professionals and journalists to visit nuclear facilities, research centres and training programmes. When people can see how systems operate, how safety is managed, and how seriously it is taken, the conversation becomes more grounded and less abstract. There is also an important human dimension that is often overlooked.

The history of Chornobyl is not only a story of tragedy. It is also a story of professionalism, responsibility and the people who managed the crisis and generated the knowledge that made today’s safety standards possible. Acknowledging that the full picture helps move the discussion away from fear alone toward understanding. At the same time, we need to broaden the narrative. Nuclear is not only about power generation. It is about cancer treatment, food security, water management and high-skilled employment. When communities begin to connect nuclear technology with real benefits in their own lives, it stops being an abstract risk and starts becoming a practical solution. Ultimately, perception does not change through persuasion. It changes through consistency. Through transparency, long-term engagement, and real-world impact.

What are your final thoughts on Russia’s preparedness to support Africa’s nuclear ambitions?

Russia has demonstrated that it is committed to long-term partnerships in Africa, particularly in the nuclear sector. We are already seeing concrete examples of cooperation in areas such as project development, education and skills transfer. The key strength of the Russian approach is its ability to offer an integrated solution, from technology and financing to training and localisation. Partnerships must be built on mutual benefit and transparency. Africa’s priorities are clear: energy security, economic development and local capacity building. Any partner that is ready to contribute to these goals consistently and practically will have a meaningful role to play. If we look country by country, the picture becomes even more interesting.

Take Ethiopia. This is a country thinking long-term about energy security and industrialisation. It has strong hydropower, but also understands the need to diversify. Ethiopia is prepared to take a big step towards nuclear energy. In Rwanda, the approach is different. It is focused on innovation and speed. There is a strong interest in small and flexible nuclear technologies, alongside active use of nuclear science in healthcare and agriculture. What stands out is the clarity of vision and pace of implementation.

Then, there is Namibia. As a major uranium producer, the question is how to move up the value chain. Partnerships can help connect resources to technology, skills and future energy applications. So, Russia’s role is not one-size-fits-all.

The real strength lies in adapting to each country’s strategy. If that continues, nuclear cooperation becomes not just about energy, but about shaping long-term technological development. Rosatom is one of the few global players capable of delivering the entire nuclear value chain. This includes reactor technologies, fuel supply, waste management solutions, including reprocessing, as well as long-term operational support and human capital development. This comprehensive capability is what allows us to move projects from concept to reality in a structured and sustainable way.

Continue Reading

Trending