Former Mozambique Finance Minister Pleads ‘Not Guilty’ in US Federal Court Over $2 Billion Scandal
Manuel Chang, the former finance minister of Mozambique, has pleaded not guilty in a U.S. federal court in New York to charges related to a $2 billion corruption and money laundering scandal. Prosecutors allege that Chang played a key role in defrauding American investors and jeopardizing the already fragile economy of Mozambique, one of the world’s poorest countries.
Chang, who served as finance minister from 2005 to 2015, is accused of receiving bribes totaling up to $18 million as part of a scheme to secure loans for Mozambican state-owned companies from foreign banks and financiers for maritime projects. The money obtained through kickbacks and other corrupt practices, according to U.S. prosecutors.
After being arrested in Johannesburg in 2018 on a U.S. warrant, Chang was held in South Africa until his extradition to the United States on Wednesday. His attorneys are seeking a dismissal of his case, and he will remain detained until at least October.
Chang’s extradition was contested by both his lawyers and the Mozambican government, which had unsuccessfully attempted to have him face trial in Mozambique. Some groups expressed concerns that Chang would receive lenient treatment if returned to his own country.
In a letter to U.S. District Judge Nicholas Garaufis, one of Chang’s attorneys argued for the dismissal of the case, claiming that his client’s right to a speedy trial had been violated. However, the prosecution argued that another jury might come to a different conclusion from the one that acquitted co-defendant Jean Boustini in 2019.
The scandal revolves around loans amounting to $2 billion that were meant to be used for the purchase of fishing vessels and naval patrol boats to support Mozambique’s fishing industry. However, prosecutors allege that the investments never materialized.
The revelation of the hidden debts associated with the scandal led to a financial crisis in Mozambique, with the International Monetary Fund withdrawing its support for the country in 2016.
Credit Suisse, the Swiss bank, agreed to pay at least $475 million in 2021 to settle bribery and kickback allegations stemming from its involvement with the corrupt loans.
Several individuals, including Ndambi Guebuza, the son of former Mozambican president Armando Guebuza, have already been convicted and sentenced to prison by a Mozambican court in connection with the scandal. Guebuza received a 12-year prison sentence for receiving up to $33 million from the corrupt deal.
The case continues to shed light on the extent of corruption and fraud that has plagued Mozambique’s economy, highlighting the challenges the country faces in its efforts to combat financial misconduct and foster economic stability.
