Former Mozambique finance minister Manuel Chang has begun trial in the US for his alleged involvement in the “tuna bond” scandal, revealed in 2016. Chang, who served as finance minister from 2005 to 2015, faces charges of accepting bribes to secure large loans for Mozambique, which prosecutors claim were subsequently embezzled.
The loans were originally intended to fund a fleet of tuna fishing vessels but instead contributed to a financial crisis when Mozambique’s hidden debt of $2 billion was exposed. Prosecutors allege that substantial portions of the loans were diverted to bribes and kickbacks, including $7 million to Chang himself.
During opening statements in a federal court in Brooklyn, Assistant U.S. Attorney Peter Cooch accused Chang of abusing his authority for personal gain through bribery, fraud, and money laundering. Chang has pleaded not guilty, with his defense arguing there is no evidence he accepted payoffs in exchange for guaranteeing the loan repayments on behalf of Mozambique.
The scandal severely impacted Mozambique’s economy, leading to stagnation in growth, currency depreciation, inflation, and reduced investor confidence. Mozambique has since reached settlements with creditors, including payments to Credit Suisse and agreements with VTB Bank and BCP Bank.
Chang’s extradition to the US followed legal battles in South Africa, where he was arrested in 2018. Despite attempts by his defense to dismiss the case, arguing legal immunity and jurisdictional overreach, these arguments were rejected by U.S. District Judge Nicholas Garaufis.