Don’t Believe the Spin on the Mozambican Acquittal

The jury in the federal criminal trial in Brooklyn of  Jean Boustani acquitted him December 2 of charges arising from a scheme to pay Mozambican officials tens of millions of dollars in bribes in return for the government borrowing hundreds of millions of dollars to pay for ships it could not afford. No sooner was the verdict announced than Privinvest — Boustani’s employer, the supplier of the ships, and a major beneficiary of the scheme — crowed it had been completely vindicated.  Despite evidence produced at the trial, charges pending in Mozambique, and allegations in a civil action in the United Kingdom, Privinvest lawyers are telling the press the acquittal proves the company had no part of the scheme.  That it did not pay bribes to win the business.

If it were true the company paid no bribes, three Credit Suisse executives would not have pled guilty to accepting bribes from it in the same court where Boustani was acquitted. Nor would they have named its CEO Iskander Safa, CFO Najib Allam, and Boustani as bribe payers (here). Nor would a trial witness have explained that Government Exhibit 2758, an April 2014 e-mail from Boustani to Allam, is a list of bribes the company paid Mozambican officials.  A list that includes President Filipe Jacinto Nyusi (“Nuy” in the e-mail), former Finance Minister Manuel Chang (“Chopstick”), and former intelligence chief António Carlos do Rosário (“Ros”). (Complete decoded list here.)

No, the verdict of acquittal does not exonerate Privinvest.  Nor anyone else for that matter.  What it shows is two things.

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If the International Community Takes Corruption in Sports Seriously, Russia Should Be Banned from the 2020 Olympics

Corruption in sports has been recognized as a serious and systemic problem (see here and here). One of the most egregious examples of sports-related corruption is Russia’s state-sponsored doping program. A 2015 report issued by an independent commission of the World Anti-Doping Agency found that this program involved athletes, coaches, trainers, doctors, and Russian institutions. Some of the most serious allegations were that members of the Russian secret service (the FSB) had pressured lab workers to cover up positive drug testing results (with one lab destroying more than 1,400 samples), top Russian sports officials submitting fake urine samples, and athletes assuming false identities, paying for destruction of positive doping results, and bribing anti-doping authorities. The former director of Russia’s anti-doping lab, Dr. Grigory Rodchenkov, has provided additional explanations as to how he and others, including FSB agents, enabled doping for the country’s athletes.

In light of these revelations, WADA recommended that the International Olympic Committee (IOC) ban Russia in the 2016 Rio Summer Olympics; however the IOC permitted each sport to consider individual athletes for participation. After an additional 2016 investigation known as the McLaren report produced additional evidence regarding Russian violations, the IOC did ban Russia from the 2018 Winter Olympics, and banned several individual athletes for life, but the IOC permitted 168 Russians to compete neutrally as “Olympic Athletes from Russia.” WADA reinstated Russia’s Anti-Doping Agency as compliant with the World Anti-Doping Code in September 2018, subject to two conditions: (1) Russian anti-doping authorities must accept the McLaren report findings; and (2) Russia must make data in its Moscow laboratory available to WADA inspection.

Yet Russia has not learned its lesson:

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