Former Mozambican Finance Minister Manuel Chang was found guilty in a financial conspiracy case related to the country’s “tuna bond” scandal. The case involved secret loans to government-controlled companies for maritime projects, leading to Mozambique accumulating $2 billion in hidden debt. Chang, who served as the top financial official from 2005 to 2015, was accused of accepting payoffs in exchange for putting his country on the hook for the loans. The verdict was viewed as a victory for justice and the people of Mozambique, according to U.S. Attorney Breon Peace.
Chang, who pleaded not guilty to the charges, faces a potential sentence of up to 20 years in prison. The loans taken out by Mozambique between 2013 and 2016 were meant to finance various projects, including a tuna fleet, a shipyard, and Coast Guard vessels. However, the funds were misappropriated by bankers and government officials for personal gain, leading to the country’s financial crisis. Chang was accused of collecting $7 million in bribes, but his defense argued that there was no evidence of him receiving any money illegally.
The loans, which were marketed as “tuna bonds” to investors, caused substantial losses to investors in the U.S. and elsewhere. Mozambique has been working to reach out-of-court agreements with creditors to address the debt. Numerous individuals, including Chang, have been convicted in connection with the scandal, with others still facing legal action. The impact of the hidden debt on Mozambique’s economy was severe, leading to stagnated growth, inflation, devaluation of currency, and increased poverty among the population.
Chang’s arrest in 2018 in South Africa preceded his extradition to the U.S. to face charges related to the conspiracy case. While two British bankers pleaded guilty in the case, another defendant was acquitted by a jury. Several other individuals involved in the scandal remain at large. In 2021, Credit Suisse agreed to pay over $475 million to British and U.S. authorities in connection with its role in the Mozambique loans. The scandal has had far-reaching implications, not only for Mozambique but also for international investors and financial institutions involved in the tainted transactions.
The case has highlighted the vulnerabilities in global financial systems and the consequences of corruption at the highest levels of government. The outcome of Chang’s trial serves as a warning to other officials tempted to engage in fraudulent activities that harm their countries and populations. The lessons learned from the Mozambican “tuna bond” scandal can hopefully lead to reforms and safeguards to prevent similar situations from occurring in the future. The pursuit of justice for those responsible for the financial crisis in Mozambique continues, with the hope of recovering and rebuilding from the damage caused by the corrupt dealings of the past.
