A US court has convicted former Mozambican Finance Minister Manuel Chang in connection with a conspiracy linked to the devastating economic crisis that struck Mozambique a decade ago. Chang was found guilty of accepting bribes through US banks in exchange for approving secret loans that were initially intended for a fleet of tuna fishing vessels, leading to the scandal being labeled the “tuna bond” affair.
The illicit loans, which totaled $2 billion, left Mozambique with a crippling debt burden. Chang was apprehended in South Africa in 2018 and extradited to the US the following year to face charges of fraud and money laundering, despite efforts by Mozambican authorities to have him tried in his home country. He now faces a potential 20-year prison sentence and has denied the charges, with his legal team indicating plans to appeal the conviction.
This case is regarded as one of the most significant corruption scandals in African history, with at least ten others, including the son of former President Armando Guebuza, imprisoned in connection with the scandal. The loans, issued by prominent financial institutions, were guaranteed by the Mozambican government, yet much of the financing was misappropriated during Chang’s tenure from 2005 to 2015.
Evidence presented during the trial revealed that Chang pocketed approximately $7 million in bribes, with prosecutors emphasizing his critical role in facilitating the loans’ approval. The court was told that he prioritized personal profit over his governmental responsibilities.
In a noteworthy development, three former bankers from a major investment bank have already pleaded guilty to charges tied to the same scandal. Following the fallout from the fraudulent dealings, substantial fines were levied against the bank involved, contributing to a larger settlement exceeding $475 million with regulatory authorities.
This corrupt scheme has far-reaching implications, pushing millions into poverty and significantly impacting Mozambique’s economic growth. An independent audit estimated that around £500 million was misappropriated, and the fate of these missing funds remains uncertain.
Despite Mozambique’s wealth in natural resources, including vast offshore gas reserves and ruby mines, it continues to struggle with poverty and economic challenges. The US Attorney for the Eastern District of New York expressed that the verdict marks a crucial step toward justice for the people of Mozambique, who suffered due to the actions of a high-ranking official driven by greed.
