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Mozambique’s former finance minister, Manuel Chang, has been sentenced to an additional two-and-a-half years in prison for his involvement in the notorious “tuna bonds” corruption case. This scandal, which has had devastating effects on the country’s economy, involved the misappropriation of approximately $2 billion in loans intended for maritime projects.
Key Takeaways
- Manuel Chang sentenced to 8.5 years total, including time served.
- Convicted of accepting $7 million in bribes.
- The scandal led to a financial crisis affecting nearly 2 million Mozambicans.
- Chang’s actions resulted in Mozambique incurring a $2 billion debt.
Background of the Case
Manuel Chang, who served as Mozambique’s finance minister from 2005 to 2015, was at the center of a scandal that saw the country secretly take on massive loans from international banks. These loans were purportedly for developing a tuna fishing fleet and other maritime projects. However, the funds were instead siphoned off through bribes and kickbacks, leading to significant financial losses for investors and the Mozambican government.
During his trial, prosecutors revealed that Chang had pocketed $7 million in bribes, which were funneled through U.S. banks to accounts in Europe. The loans, taken out by three government-controlled companies between 2013 and 2016, ultimately defaulted, leaving Mozambique with a staggering debt that represented about 12% of its GDP at the time.
The Court Proceedings
In a New York federal court, Chang expressed remorse for his actions, stating he was “very disgusted” with his conduct and regretted the damage caused to his country. He pleaded for leniency, citing his poor health and the harsh conditions he faced while incarcerated in South Africa prior to his extradition to the U.S.
Despite his pleas, U.S. District Judge Nicholas Garaufis emphasized Chang’s central role in the corruption, stating he had a fiduciary duty to act in the best interest of Mozambique. The judge ultimately sentenced him to a total of eight-and-a-half years in prison, including the nearly six years he had already served.
Impact on Mozambique
The fallout from the tuna bonds scandal has been catastrophic for Mozambique. The revelation of the hidden debt in 2016 plunged the nation into a financial crisis, forcing nearly 2 million people into poverty. The government was compelled to cut services, leading to stagnation in economic growth, soaring inflation, and a plummeting currency.
In the wake of the scandal, Mozambique has been negotiating with creditors to manage its debt. At least ten individuals have been convicted in connection with the case, including the son of a former president. Additionally, two British bankers have pleaded guilty in the U.S. related to the scandal, and Credit Suisse has agreed to pay significant fines for its involvement.
Looking Ahead
As Mozambique grapples with the repercussions of this scandal, the newly inaugurated president, Daniel Chapo, has acknowledged the challenges ahead. In his acceptance speech, he emphasized the need to combat corruption and restore integrity within the government.
Chapo stated, “Mozambique cannot continue to be held hostage by corruption, inertia, cronyism, nepotism, sycophancy, incompetence, and injustice. That’s why we said let’s get to work.”
The sentencing of Manuel Chang serves as a reminder of the consequences of corruption and the ongoing struggle for accountability in Mozambique’s political landscape.
