Former Mozambican Finance Minister Convicted in US Court Over “Tuna Bond” Scandal
In a landmark ruling, a US court has convicted Manuel Chang, the former finance minister of Mozambique, for his role in a 10-year-old conspiracy that led to the worst economic crisis in the country since independence. Chang was found guilty of accepting pay-offs through US banks in exchange for approving secret loans that were intended to fund projects including a fleet of tuna fishing ships.
The scandal, known as the “tuna bond” affair, saw the loans being misappropriated, leaving Mozambique saddled with $2 billion in debt. Chang was arrested in South Africa in 2018 and extradited to the US the following year to face charges of fraud and money laundering.
Despite calls from Mozambican authorities to have Chang tried in his home country, he was prosecuted in the US. Chang faces a potential sentence of 20 years in prison, with his lawyers indicating plans to appeal the verdict.
Analysts have described the case as one of the biggest corruption scandals to hit the African continent. Several other individuals, including the son of former President Armando Guebuza, have been imprisoned in Mozambique in connection with the scandal.
The loans at the center of the scandal were issued by Credit Suisse and the Russian bank VTB, guaranteed by the Mozambican government, and approved by Chang during his tenure as finance minister. The court heard that Chang had received $7 million in bribes from a shipbuilding firm, but his lawyer argued that there was no evidence of his involvement in corrupt activities.
The prosecution, however, maintained that Chang played a critical role in approving the loans and prioritized personal gain over his official duties. The case has also implicated former Credit Suisse bankers who pleaded guilty to money laundering charges.
The fallout from the scandal has had far-reaching consequences, with millions of people in Mozambique pushed into poverty and billions of dollars wiped off economic growth. An independent audit revealed that £500 million in funds went missing, leading the International Monetary Fund to withdraw its support from Mozambique.
In a statement following the verdict, US Attorney Breon Peace hailed the ruling as a victory for justice and the people of Mozambique, condemning Chang’s actions as a betrayal of the country’s citizens. The case serves as a stark reminder of the devastating impact of corruption on developing nations, even as Mozambique grapples with its rich natural resources and economic challenges.
