Mozambique’s Ex-Finance Minister sentenced to 2 more years

Mozambique’s Ex-Finance Minister sentenced to 2 more years

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Mozambique’s ex-finance minister sentenced to 2 more years in prison by a US court, following his involvement in the tuna bond corruption case, AP reports.

This recent verdict, issued on January 17th, adds to his incarceration of six years in the US and South Africa.

Chang told the court that he has learned from his mistakes and ‘deeply regrets’ his conduct, and also implored the judge to have compassion, citing poor health.

In 2024, authorities convicted Manuel Chang, 69, of accepting payoffs to prevent Mozambique from repaying about $2 billion in loans from major overseas banks.

Chang served as Mozambique’s top finance official from 2005 until 2015, when he approved loans intended to fund a tuna fishing fleet, a shipyard, Coast Guard vessels, and other maritime projects for Mozambique.

Three government-controlled companies borrowed the money between 2013 and 2016, however, bankers and government officials instead plundered the loans through bribery, according to prosecutors.

Chang reportedly pocketed $7 million in bribes, which were wired through US banks into European accounts, with the total amount diverted by government officials equating to around $200 million.

Officials defrauded US investors about the intended use of the loans, causing them to suffer losses.

Chang’s lawyers, however, argued that there was no evidence of a financial quid-pro-quo. They maintain that their client was acting on orders of the government, and pledged that Mozambique would repay the loans.

The defence argued that Chang played a ‘minor role’ in the scandal, but prosecutors argued to the contrary. “He stole from his country and caused the crisis that crippled it,” said Jonathan Siegel, an assistant US attorney.

Supposedly, Chang enjoyed trips to villas in France and drove an “obscene” luxury vehicle despite his country’s poverty. These allegations undermine the defence’s position that the ex-finance minister did not benefit financially from the loans.

When the companies in receipt of the loans defaulted, Mozambique was in a deficit of $2 billion, around 12% of its GDP, launching the country into financial upheaval.

Estimates indicate that nearly 2 million Mozambicans fell into poverty. Economic growth stagnated, investments were exhausted and services were cut back.

Mozambique continues to grapple with the scandal’s fallout.

AP


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