The Mozambican state is demanding 3.1 billion dollars from the Naval Privinvest group and its owner, Iskandar Safa, for damages, compensation and indemnity as part of the "hidden debts" case that began today at the Commercial Court in London.

The amount was revealed on Tuesday during the start of the trial, which was delayed after the agreement reached two weeks ago with Credit Suisse and other banks involved in the case.

According to Joe Smouha, a lawyer for the Mozambican Attorney General's Office (PGR), which is representing the state in this case, quoted by Lusa, there was a "shocking scale and speed" to the fraud and corruption committed.

Privinvest is accused of bribing public officials, in particular former Finance Minister Manuel Chang, to approve contracts and the financing of loans from three state-owned companies (Proindicus, EMATUM and MAM) for the purchase of fishing boats and maritime safety equipment from Privinvest.

The company and Iskandar Safa are also accused by Mozambique of bribing officials from Credit Suisse and VTB banks to facilitate the transactions.

The French-Lebanese businessman and the naval group both deny having committed acts of corruption.

In this context, the 3.1 billion dollars that Mozambique is demanding from Privinvest includes 700 million dollars in costs and interest on the debts incurred by the loans, 1.4 billion dollars that the Mozambican state owes to holders of bonds and coupons on foreign debt securities, and 136 million dollars in bribes paid to public officials.

The remainder is an estimate of the profits that Privinvest made from the 1.8 billion dollars in contract revenues.

Mozambique had previously announced that it would not maintain its request for compensation for "macroeconomic losses" resulting from the suspension of international support from the International Monetary Fund (IMF) and other donors.

The trial, Smouha stressed, "finally gives a voice to the people of Mozambique", a country "burdened by poverty and debt".

The lawyer also criticized the banks involved for trying to make "quick commercial gains at the expense of the population and turning a blind eye to what was obvious to any banker".

As a result of the agreement with Credit Suisse for Mozambique to drop the allegations against the Swiss bank, the latter waived the 450 million dollar debt but did not pay any compensation, Smouha revealed.

Credit Suisse remains potentially liable to Privinvest if it is proven that the shipping group bribed the bank's three former employees Andrew Pearse, Surjan Singh and Detelina Subeva.

The case of the "hidden debts" dates back to 2013 and 2014, when Chang approved state guarantees on loans from Proinducus, Ematus and MAM to the banks Credit Suisse and VTB, without the parliament's consent.

Discovered in 2016, the debts were estimated at around 2.7 billion dollars, according to the indictment filed by the Mozambican Public Prosecutor's Office, leading to legal proceedings in the United States and Mozambique.

Several high-ranking civil servants and state figures, such as former President Armando Guebuza, are named in the case in London, but the current head of state, Filipe Nyusi, has been granted diplomatic immunity.