Mozambique’s former finance minister, has been sentenced to eight-and-a-half years in prison for his role in the infamous $2 billion “tuna bond” scandal.
Manuel Chang’s sentence, handed down by a Brooklyn federal court, is evidence of the global reach of U.S. financial regulations and the consequences for foreign officials who exploit the international financial system.
A Corruption Scandal of Global Scale
The origins of the case trace back to 2013 and 2014, when Mozambique’s government-backed loans worth $2.2 billion for a tuna fishing project.
These loans, secured through three state-owned companies, were secretly guaranteed by Manuel Chang and other officials. Chang, who was appointed finance minister in 2005 by then-President Armando Guebuza, accepted $7 million in bribes in exchange for authorizing the guarantees.
The loans were concealed from the Mozambican public and international donors, ultimately causing the country’s economic collapse in 2016. The disclosure of this “hidden” debt led to a currency crisis and devastated Mozambique’s already fragile economy.
Arrest, Extradition, and Conviction
In 2018, Chang was arrested in South Africa, prompting a lengthy legal battle over extradition. Both Mozambique and the United States sought jurisdiction over the case. Ultimately, South Africa extradited Chang to the U.S. in 2023.
In August 2024, a New York federal court convicted Chang of wire fraud and money laundering. His crimes, which involved U.S. banks and investors, highlighted the international ramifications of the scandal.
Sentencing and Restitution
Having already served nearly six years in pre-sentence custody, Chang was ordered to serve an additional two-and-a-half years in prison and to forfeit the $7 million he received in bribes. Acting U.S. Attorney Carolyn Pokorny emphasized the broader implications of the sentencing.
“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,” Pokorny said in a press release.
She was joined by FBI Assistant Director James Dennehy and Brent Wible, head of the Justice Department’s Criminal Division, in announcing the court’s decision.
Impact on Mozambique and International Accountability
The scandal continues to cast a shadow over Mozambique’s financial stability and governance. The fraudulent loans not only plunged the country into economic turmoil but also raised questions about the role of international lenders and the accountability of foreign officials.
Manuel Chang’s sentencing signals the United States’ commitment to pursuing justice in cases of international financial misconduct. It also serves as a warning to those who exploit global financial systems for personal gain.
