The Kiwi who took $71m in bribes

New Zealander Andrew Pearse has reportedly admitted to receiving NZ$71 million in bribes as part of a multibillion loan scheme which took advantage of one of the world’s poorest nations.

Pearse last week admitted before a New York jury to receiving the bribe for helping organise US$2 billion (NZ$3.1b) in loans from his former employer Credit Suisse to government-owned maritime companies in Mozambique. The Christchurch-born man was arrested in London in January after an indictment filed by the United States department of justice charged him with four counts of fraud and money laundering.

Also charged were two executives of United Arab Emirates shipbuilding company Privinvest Group, three former senior Mozambican government officials, and two former London investment bankers for their roles in the fraud and money laundering scheme that defrauded American and global investors.

The indictment alleges that corrupt Mozambique government officials, corporate executives, and investment bankers stole about US$200m in loan proceeds that were meant to benefit the people of Mozambique, who earn an average of about a dollar a day.

Pearse, 50, pleaded guilty in July to one count of wire fraud New Zealander Andrew Pearse has admitted helping arrange bank loans in return for millions of dollars in kickbacks. conspiracy and admitted helping arrange bank loans to three companies owned and controlled by the Mozambican government in return for millions of dollars in kickbacks.

He could face up to 20 years in prison.

Bloomberg reported last week that Pearse was a key witness testifying against Privinvest employee Jean Boustani before a federal jury in New York.

Boustani, who pleaded not guilty to fraud charges, is alleged to have made the bribe and kickback payments relating to three loans totalling more than $2b.

Pearse worked as head of Credit Suisse’s Global Financing Group before leaving the international bank in September 2013 to allegedly set up subsidiaries with Privinvest, which is owned by Lebanon-born French billionaire Iskandar Safa.

Mozambique government officials created three companies to undertake maritime projects – surveillance, tuna fishing and building and maintaining shipyards. The companies contracted Privinvest to undertake the projects.