Mozambique’s Former Finance Minister Convicted of $2 Billion Bond Fraud

In a significant development, Manuel Chang, the former finance minister of Mozambique, has been found guilty of involvement in a $2 billion bond fraud that led to a financial crisis in his country. The conviction was handed down by a federal jury in Brooklyn, New York, on Thursday.

Chang was charged with accepting bribes to covertly bind Mozambique to large loans focused on tuna fishing and various maritime projects. Prosecutors alleged that bribes and kickbacks resulted in the exploitation of loans, leaving the country with $2 billion in "hidden debt" and igniting a financial crisis.

According to the charges, Chang received $7 million in bribes, which were transferred via U.S. banks to European accounts owned by a colleague. The bribes were allegedly used to secure loans for three companies managed by the Mozambican government, which obtained $2 billion in loans from major foreign banks between 2013 and 2016.

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. However, U.S. prosecutors claimed that the loan funds were pilfered by bankers and government officials for their own financial benefit.

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. However, the jury found him guilty of conspiracy to commit wire fraud and money laundering, both of which could lead to a maximum of 20 years in prison.

The revelation of Mozambique’s $2 billion debt in 2016 shocked a nation that had been recognized as one of the world’s 10 fastest-growing economies for the previous twenty years, leading to a sudden financial crisis. The conviction of Chang marks a significant step towards accountability for those responsible for the financial crisis.

This article is a comprehensive report on the conviction of Manuel Chang, the former finance minister of Mozambique, for his involvement in a $2 billion bond fraud that led to a financial crisis in his country.