Manuel Chang Sentenced in Mozambique Tuna Bond Scandal \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ Manuel Chang, Mozambique’s former finance minister, has been sentenced to eight-and-a-half years in U.S. prison for his role in the “tuna bond” scandal, which plunged Mozambique into financial crisis. The case exposed systemic corruption involving $2 billion in hidden loans, impacting millions and destabilizing the nation’s economy.
Manuel Chang Sentenced in U.S. Over Mozambique’s Tuna Bond Scandal: Quick Looks
- Sentence Details: Chang was sentenced to eight-and-a-half years, with nearly six years already served.
- Scandal Overview: Chang accepted bribes and approved $2 billion in loans, devastating Mozambique’s economy.
- Health and Age: The 69-year-old cited poor health and prison conditions as reasons for leniency.
- Global Impact: Credit Suisse paid $475 million in fines; U.S. and U.K. bankers also convicted.
- Mozambique Fallout: Nearly 2 million fell into poverty; the nation continues to negotiate debt repayments.
Deep Look
Mozambique’s former finance minister, Manuel Chang, has been sentenced to eight-and-a-half years in U.S. prison for his role in the infamous “tuna bond” scandal, a case that exposed widespread corruption and plunged the southern African nation into an economic and social crisis. The sentencing, delivered by Judge Nicholas Garaufis in a New York federal court, marks a significant development in one of the most prominent global corruption cases in recent years.
Chang, 69, admitted to accepting millions in bribes to secure $2 billion in loans under false pretenses, which left Mozambique with crippling debt and pushed nearly two million citizens into poverty. While the sentence considers his nearly six years already served in South African and U.S. custody, the ruling underscores the devastating impact of his actions on Mozambique and its people.
Origins of the Tuna Bond Scandal
The tuna bond scandal began between 2013 and 2016 when Mozambique’s government secured $2 billion in loans from international banks, including Credit Suisse and Russia’s VTB. The loans were purportedly to fund maritime projects such as a tuna fishing fleet, Coast Guard vessels, and shipyards, initiatives that were framed as critical to Mozambique’s economic development and maritime security.
However, investigations revealed that a significant portion of the funds—more than $200 million—was siphoned off through bribes and kickbacks. Prosecutors accused Chang of personally pocketing $7 million, which was transferred through U.S. banks to European accounts. The rest of the diverted funds went to other officials, bankers, and intermediaries.
When the fraudulent loans were uncovered in 2016, they triggered a financial crisis in Mozambique. The nation’s economy, once one of the world’s fastest-growing, stagnated as inflation soared, the currency plummeted, and international aid dried up. The country was left with $2 billion in debt, roughly 12% of its GDP at the time, which it struggled to repay.
Devastating Impacts on Mozambique
The scandal’s effects on Mozambique were catastrophic. Nearly two million Mozambicans were forced into poverty as public services were slashed and development projects stalled. Inflation surged, making basic goods unaffordable for many. Foreign investors lost confidence in Mozambique, further compounding the nation’s economic woes.
The public backlash was severe, with widespread protests and calls for accountability. Mozambique’s government has spent years negotiating with creditors to restructure the debt, but the road to economic recovery has been slow.
Chang’s Role and Sentencing
As finance minister from 2005 to 2015, Chang was a key architect of the loans, signing off on financial documents that obligated Mozambique to repay the funds. Prosecutors argued that Chang had a fiduciary duty to ensure the loans were in the best interest of his country, a duty he violated by prioritizing personal enrichment over national welfare.
Chang was arrested in South Africa in 2018 and fought extradition to the U.S. for years. He was finally extradited in 2023 to face charges in a U.S. court, given the loans involved transactions through American financial institutions.
During the trial, prosecutors painted Chang as a central figure in the scandal, highlighting his luxurious lifestyle, which included trips to French villas and the use of a luxury car, despite the dire poverty of his home country.
In court, Chang expressed regret, telling Judge Garaufis, “I deeply regret the damage I have caused. I am very disgusted with my conduct. I am sorry.” He cited his advanced age, deteriorating health, and harsh prison conditions in South Africa as reasons for leniency, pleading, “I would not like to die here in a prison in a foreign country, far away from my family.”
Chang’s lawyers argued for a lighter sentence, claiming he played a minor role and did not personally benefit, as his bribe money was allegedly returned to Mozambique. However, Judge Garaufis rejected this defense, noting that Chang played a “central role” by authorizing the fraudulent loans.
The judge sentenced Chang to eight-and-a-half years in prison, ordered the forfeiture of $7 million, and acknowledged his prior incarceration in South Africa and the U.S. “I hope you have a brighter future with your family when this sentence is served,” the judge said, indicating Chang would be deported to Mozambique upon completion of his sentence.
Broader Implications
The tuna bond scandal reverberated far beyond Mozambique, drawing scrutiny to the role of global financial institutions. Credit Suisse, one of the primary lenders, paid $475 million in fines to U.S. and U.K. regulators to settle allegations of misconduct in facilitating the loans.
Two British bankers involved in the scheme pleaded guilty in U.S. courts, while at least 10 Mozambican officials, including the son of former President Armando Guebuza, were convicted in Mozambican courts. The case also highlighted systemic governance issues in Mozambique, from weak financial oversight to widespread corruption at the highest levels.
Mozambique’s Ongoing Struggles
While Chang’s sentencing marks a step toward accountability, Mozambique continues to grapple with the fallout from the scandal. The nation remains saddled with debt, and its economy has yet to regain the momentum it had before 2016.
This week, Mozambique inaugurated a new president, Daniel Chapo, following contentious elections and deadly unrest. In his acceptance speech, Chapo acknowledged the challenges facing the country, calling for an end to corruption and a renewed focus on transparency and justice.
“Mozambique cannot continue to be held hostage by corruption, inertia, cronyism, nepotism, sycophancy, incompetence, and injustice,” Chapo said. “That’s why we said, let’s get to work.”
Conclusion
The sentencing of Manuel Chang in the U.S. underscores the global reach of justice in cases involving corruption and financial crimes. While his prison term brings a measure of accountability, the broader impact of the tuna bond scandal continues to weigh heavily on Mozambique.
As the nation struggles to recover, the case serves as a cautionary tale about the devastating consequences of corruption and the importance of robust financial oversight. For Mozambique, rebuilding trust and economic stability remains an uphill battle, but the conviction of Chang and others involved offers hope for a more accountable future.
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