A former finance minister of Mozambique has been sentenced to eight and a half years in prison and ordered to forfeit $7 million following his conviction for wire fraud and money laundering related to a major financial scandal. The case, which was heard in the U.S. District Court in Brooklyn, involved Manuel Chang, 69, and was based on his conspiracy to defraud international investors out of approximately $2 billion.
The sentencing came after a four-week trial that concluded in August, where it was determined that Chang had accepted $7 million in bribes while signing guarantees for loans from the Republic of Mozambique without the appropriate parliamentary approval. These loans were intended for maritime projects, including shipyard construction and tuna fishing development.
Brent S. Wible, head of the Justice Department’s Criminal Division, commented on the case, stating, “Chang’s brazen misconduct betrayed his duty to the people of Mozambique and defrauded investors, including those in the United States, of substantial amounts.” He added that the sentence holds Chang accountable for his violations of U.S. law.
In addition to his prison term, Chang is required to pay restitution to the victims, with the exact amount to be determined later. The fraud scheme became evident when approximately half a billion dollars was discovered missing, which was allegedly allocated to bribes and kickbacks to various officials. The scandal, known as the “tuna bond” affair, resulted in Mozambique defaulting on its sovereign debt in 2016, leading to a severe economic crisis.
Between 2013 and 2016, Chang and his co-conspirators facilitated around $2 billion in loans to companies owned by the Mozambican government. These loans, orchestrated with help from banks such as Credit Suisse and VTB Capital, accounted for about 12 percent of the country’s gross domestic product.
The investigation revealed that Chang and others misrepresented the purpose of the loans and concealed over $200 million in kickbacks and bribes. The financial misconduct led to significant losses for worldwide investors when the government companies defaulted on more than $700 million in repayments.
Chang was apprehended in South Africa in December 2018 while attempting to travel to the United Arab Emirates and was extradited to the U.S. in July 2023. Credit Suisse and its British subsidiary acknowledged fraudulent activities concerning an $850 million loan in 2021 and faced penalties exceeding $475 million from U.S. and British authorities.
Carolyn Pokorny, the acting U.S. attorney for the Eastern District, remarked, “Today’s sentence shows that foreign officials who abuse their power to commit crimes targeting the U.S. financial system will meet U.S. justice.”