Mozambique has successfully pursued a legal claim in London's High Court against Privinvest regarding a $2 billion corruption scandal. The court case centers on allegations of inflated contracts and the distribution of more than $136 million in bribes.
Clara Martinez Thedy de Safa, the widow of Iskandar Safa, is now personally liable in an English court for the claims originally brought against her late husband. Her inclusion in the proceedings follows the court's decision to hold her accountable for the legal challenges surrounding the business dealings of the late entrepreneur. The litigation remains a primary component of the efforts by Mozambique to recover funds related to the international contracts involving Privinvest.
The Scale of Corruption
A judge ordered Privinvest to pay $534 million in damages to Mozambique in December 2024. The High Court ruling also mandated an additional $40 million in interest payments to the state. These financial penalties stem from the judicial findings regarding the company’s involvement in the international loan scandal.
Separately, former Mozambican finance minister Manuel Chang received a sentence of nearly two years in jail following proceedings in the US. The court also ordered Manuel Chang to pay $7 million for his specific role in the corruption affair. These legal actions represent ongoing efforts to address the impact of the fraudulent maritime contracts that affected the national economy. Authorities continue to pursue recovery efforts against entities and individuals linked to the original agreements.
Legal Basis for Liability
Lord Justice Miles determined that the legal framework governing the liability of Clara Martinez Thedy de Safa rests on the specific inheritance statutes of Lebanon. Iskandar Safa, the founder of Privinvest, died in January 2024 at the age of 68. Following his death, the court examined how his financial obligations transferred to his widow under the applicable jurisdiction.
Lord Justice Miles ruled that under Lebanese law, "there is no concept of an estate" as understood in other legal systems. The court found that the inheritance of assets and debts by an heir is automatic and immediate upon death. This mechanism ensures that the financial responsibilities of the deceased transition directly to the heir without the intervention of a formal estate administration process.
Addressing the implications of this transfer for creditors, Lord Justice Miles noted, "The deceased’s creditors are exposed to the risk that the deceased’s assets may be mixed up with the heir’s own assets." By applying these provisions, the High Court concluded that Clara Martinez Thedy de Safa assumed the legal position of her late husband regarding the claims brought by Mozambique. The ruling effectively allows the state to continue its recovery efforts against the widow, treating the inherited obligations as personal liabilities under the Lebanese legal doctrine.
