Mozambican ex-president's son arrested in $2 billion fraudulent debt case

MAPUTO (Reuters) - Former Mozambican president Armando Guebuza’s son was arrested at the weekend in connection with a $2 billion government debt scandal, state-owned media and a judicial source said.

The arrest comes just over a month after three ex-Credit Suisse bankers were charged in the United States with fraud over their role in a 2013 deal in Mozambique that involved borrowing to fund projects including a state tuna fishery.

Ndambi Guebuza, the oldest of Guebuza’s four children, became the ninth person detained in the case, state-owned media AIM reported on Sunday.

Guebuza could not be reached for comment outside regular office hours.

The southern African state admitted in 2016 to undisclosed lending, prompting the International Monetary Fund and foreign donors to cut off support, triggering a currency collapse and a default on Mozambique’s sovereign debt.

It is still struggling to overcome the resultant debt crisis.

Reporting by Manuel Mucari; Editing by Jan Harvey

Our Standards:The Thomson Reuters Trust Principles.

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