former finance minister found guilty in New York

A former Finance Minister of Mozambique, linked to a major international financial scandal that has plunged his country into turmoil, was found guilty on Thursday by the American justice system of involvement in this case of massive fraud and money washing

Financial fraud and money laundering

Manuel Chang, 48, who was detained in South Africa from 2018 to 2023 at the request of the American authorities, was extradited to the United States in July 2023 and was tried for four weeks in federal court in Brooklyn, New York.

He faces up to 20 years in prison, according to a statement from the US Department of Justice.

He was found guilty of “conspiracy to commit financial fraud and money laundering, crimes related to his role in a fraudulent relationship and bribery of two billion dollars despite investors in the United States and their locations other”.

“hidden debt”

“Today’s decision is a real victory for justice and the people of Mozambique have been deceived by the accused, a corrupt government official whose greed and selfishness have dried up one of the poorest countries in the world,” scorned the Brooklyn federal prosecutor, Peace Breon.

Manuel Chang in the crosshairs of the United States because of his involvement in the so-called “hidden debt” transaction in Mozambique, in which he used the American financial system to seize money.

South Africa and the American Federal Police (FBI) collaborated between 2022 and 2023, against the government of Mozambique, to extradite Mr. Chang to the United States.

A “hidden debt” scandal erupted in 2016 after state-owned companies in the impoverished southern African country of Mozambique illegally borrowed $2 billion in 2013 and 2014 – while Mr Chang was finance minister – from banks international to purchase a fleet of tuna fishing and patrol boats. vessels.

Mr. Chang signed off on these loans and the government hid the debt from Parliament. After it emerged in 2016, Mozambique’s donors, including the International Monetary Fund (IMF) and the World Bank, suspended their financial support.

This triggered a default on the country’s sovereign debt and a devaluation of its currency, leading to the worst economic crisis since its independence from Portugal in 1975.

An independent investigation found that $500 million in loans were misused and never received.

With AFP