Mozambique Former Finance Minister Sentences to prison

Former Mozambique finance minister Manuel Chang was sentenced on Friday in a New York court to eight and a half years in prison for his role in the “hidden debt” corruption scandal, which caused an economic crisis in Mozambique.

Six of those years were spent in custody in the United States and South Africa.

Chang was convicted in August last year of accepting $7 million in bribes for approving approximately $2 billion in secret loans from major overseas banks to state-owned companies.

The loans were intended to fund projects such as purchasing a tuna fishing fleet and bolstering maritime security.

Instead, the funds were siphoned off through bribes and kickbacks.

The projects collapsed, the companies defaulted, and investors suffered millions in losses.

Mozambique was left with a $2 billion debt equivalent to 12% of its GDP at the time leading to the suspension of aid from donors like the IMF and World Bank.

This triggered a currency collapse and widespread financial instability.

In court, Chang apologized, stating he initially believed the projects would benefit Mozambique but later realized his wrongdoing.

The judge credited him for time already served, making him eligible for release and deportation to Mozambique in two and a half years.

Chang’s lawyers announced their intention to appeal the conviction.

Africanews/Patience Ameh