The former finance minister of Mozambique, Manuel Chang, has been sentenced to an additional two-and-a-half years in a US prison for his involvement in the infamous “tuna bond” scandal, a scheme that precipitated a financial crisis in the African nation. This sentencing adds to the nearly six years Chang has already served in US and South African prisons since his 2018 arrest.
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Chang, 69, was convicted in 2023 for accepting bribes to secretly secure approximately $2 billion in loans from international banks, ostensibly for maritime projects including a tuna fishing fleet and shipyard. Instead, these funds were misappropriated through bribes and kickbacks, enriching bankers and government officials while leaving Mozambique with crippling debt.
The Depth of Deception: Bribery, Kickbacks, and a Nation’s Crisis
During the trial, US prosecutors presented evidence that Chang personally received $7 million in bribes, funneled through US banks to European accounts. The total amount diverted exceeded $200 million, defrauding investors globally who were misled about the loans’ intended use.
Chang’s defense team argued that he was merely acting on government directives when he authorized the loan guarantees. They contended there was no evidence of a direct financial quid-pro-quo and that Chang had not personally benefited, as the illicit funds were eventually returned to the Mozambican government.
However, prosecutors countered this narrative by highlighting Chang’s lavish lifestyle, which included trips to French villas and luxury vehicles, starkly contrasting with the poverty prevalent in Mozambique. They argued that his actions directly contributed to the nation’s economic woes.
A Crushing Debt Burden and Lasting Repercussions
The undisclosed $2 billion debt, equivalent to about 12% of Mozambique’s GDP at the time, was revealed in 2016. This “hidden debt” triggered a devastating financial crisis, pushing an estimated two million people into poverty. The country experienced severe economic consequences, including slashed government services, stagnant growth, soaring inflation, a plummeting currency, and a significant decline in international investment and aid.
Sentencing and Mozambique’s Path Forward
Judge Nicholas Garaufis, acknowledging Chang’s age, health issues, and time already served, sentenced him to a total of eight-and-a-half years, including time served. He also ordered Chang to forfeit $7 million. Judge Garaufis emphasized Chang’s “central role” in the scheme and his breach of fiduciary duty to prioritize the best interests of Mozambique.
Chang’s lawyers plan to appeal the sentence. Meanwhile, Mozambique continues to navigate the long-term repercussions of the scandal, negotiating with creditors to manage the debt burden. The case has led to numerous convictions in Mozambique, including the son of former President Armando Guebuza. Internationally, two British bankers have pleaded guilty, and Credit Suisse paid a substantial settlement for its involvement.
A New Era for Mozambique?
Mozambique recently inaugurated a new president, Daniel Chapo, who has vowed to address the persistent challenges of corruption and economic instability. His administration faces the formidable task of rebuilding trust and fostering sustainable economic recovery in the wake of this devastating scandal. The sentencing of Manuel Chang serves as a significant development in holding those accountable for the “tuna bond” scandal and its lasting impact on Mozambique.
