Former Mozambique Finance Minister Manuel Chang has gone on trial in the United States concerning the infamous “tuna bond” scandal, which surfaced in 2016. Chang, who held the position of finance minister from 2005 to 2015, faces allegations of accepting bribes to surreptitiously commit Mozambique to substantial loans that prosecutors contend were subsequently misappropriated.
The loans were ostensibly intended for the purchase of a fleet of tuna fishing vessels but resulted in financial calamity when Mozambique’s undisclosed $2 billion debt was uncovered in 2016, plunging the country into crisis.
During opening statements this week in a federal court in Brooklyn, Assistant U.S. Attorney Peter Cooch accused Chang of exploiting his authority for personal gain through bribery, fraud, and money laundering. Chang has pleaded not guilty to these charges.
Defense lawyer Adam Ford countered, asserting there is no evidence that Chang accepted or solicited bribes in exchange for guaranteeing the loans. Ford argued that Chang acted in accordance with governmental directives.
The repercussions of the scandal have been profound for Mozambique’s economy, with estimates suggesting potential costs could reach approximately $11 billion, equivalent to around 60% of the nation’s current GDP. Prior to the debt revelation, Mozambique had been recognized as one of the world’s fastest-growing economies for two decades, according to the World Bank. However, following the scandal, economic growth stagnated, currency depreciation occurred, inflation surged, and foreign investor confidence waned, prompting the International Monetary Fund (IMF) to withdraw its support.
In efforts to address the debt burden, Mozambique’s government has negotiated settlements with creditors, including a $142 million payment to Credit Suisse last year to cover part of the original loans. Additional agreements have been reached with Russia’s VTB Bank and Portugal’s BCP Bank.
Legal actions related to the scandal have spanned multiple continents, with court proceedings initiated in Africa, Europe, and the United States. In Mozambique, several individuals, including Ndambi Guebuza, son of former President Armando Guebuza, have been convicted and imprisoned in connection with the scandal.
Manuel Chang’s extradition to the U.S. followed his arrest at Johannesburg’s main international airport in late 2018. Despite legal challenges to dismiss the case, including claims of immunity as a former foreign official, U.S. District Judge Nicholas Garaufis ruled against them.
