The former finance minister of Mozambique, Manuel Chang, has been convicted on U.S. charges for his involvement in a $2 billion bond fraud that caused a financial crisis in his country.
Chang was charged with accepting bribes to covertly bind his African nation to large loans focused on tuna fishing and various maritime projects.
Prosecutors allege that bribes and kickbacks resulted in the exploitation of loans, leaving the country with $2 billion in “hidden debt” and igniting a financial crisis.
Chang, who was the leading financial official in his country from 2005 to 2015, has pleaded not guilty to the conspiracy charges.
His attorneys argue that he was merely executing his government’s wishes when he approved the loan repayment agreements for Mozambique, and they maintain that there is no evidence of any financial gain for him.
Prosecutors alleged that Chang received $7 million in bribes, which were transferred via U.S. banks to European accounts owned by a colleague.
A federal jury in Brooklyn, New York, reached a guilty verdict on Thursday for Chang on charges of conspiracy to commit wire fraud and money laundering, both of which could lead to a maximum of 20 years in prison.
Chang denied wrongdoing, with his attorney stating that his client was only fulfilling his duties to help the southern African country obtain loans to carry out public infrastructure works.
Between 2013 and 2016, three companies managed by the Mozambican government quietly obtained $2 billion in loans from major foreign banks.
Chang signed off on guarantees that the government would repay these loans, which were vital for reassuring lenders who might have been reluctant to work with these newly formed companies.
The income was planned to be used for developing a tuna fleet, constructing a shipyard, and procuring Coast Guard vessels and radar systems to defend the natural gas fields located off the country’s Indian Ocean shore.
U.S. prosecutors claimed that the loan funds were pilfered by bankers and government officials for their own financial benefit.
In 2016, the public discovered that Mozambique had incurred a $2 billion debt, which represented around 12% of its gross domestic product at that time.
This revelation shocked a nation that the World Bank had recognized as one of the world’s 10 fastest-growing economies for the previous twenty years, leading to a sudden financial crisis.
Source: Africanews
