NEW YORK — Mozambique’s former finance minister has been sentenced to an additional two and a half years in prison by a U.S. court due to his involvement in the “tuna bond” scandal, which led to a financial crisis in the struggling African nation.
Manuel Chang, who is 69 years old, was found guilty last year of accepting bribes that resulted in Mozambique secretly incurring approximately $2 billion in loans from prominent foreign banks.
A federal judge in New York issued the sentence on Friday, amounting to a total of eight and a half years, which includes nearly six years he has already spent in prison in the U.S. and South Africa, where his arrest took place in 2018.
In court, speaking through an interpreter, Chang expressed regret over his actions, stating he has learned from his mistakes and is “very disgusted” by his conduct. “I deeply regret the damage I have caused. I am sorry,” he added. Chang also urged the judge for “compassion,” highlighting the tough conditions he endured during his nearly four and a half years behind bars in South Africa. “I would not like to die here in a prison in a foreign country, far away from my family,” he lamented.
From 2005 to 2015, Chang served as Mozambique’s top finance official, taking part in the approval of loans that were meant to finance a tuna fishing fleet, shipyard, Coast Guard vessels, and other maritime initiatives for the southern African region. However, according to prosecutors, the funds were exploited by bankers and government officials through various illicit means.
During the trial, prosecutors revealed that Chang had pocketed about $7 million in bribes, which were funneled through U.S. banks into European accounts. In total, he and other co-conspirators diverted over $200 million, deceiving investors both in the U.S. and internationally by misrepresenting the intended use of the loan proceeds, resulting in significant financial losses.
Chang’s defense argued that there was no concrete evidence proving a financial quid-pro-quo and claimed he was simply executing his government’s wishes when he agreed to commitments that Mozambique would repay the loans, which were obtained by three government-affiliated companies between 2013 and 2016. Following the companies’ default, Mozambique found itself burdened with $2 billion in debt, amounting to around 12% of the nation’s gross domestic product at the time.
This “hidden debt” scandal came to light in 2016, throwing the country into a financial crisis that reportedly forced nearly 2 million Mozambicans into poverty. The fallout saw the government cut vital services, economic growth stall, inflation soar, the national currency decline, and international investment and aid dwindle.
Chang resisted extradition for several years until he was finally brought to the U.S. in early 2023. He faced a possible maximum sentence of 20 years; however, his attorneys recommended that he receive no further prison time, contending that he played a relatively minor role in the dealings. They emphasized that he had not personally benefitted from the embezzled funds, which were later returned to the Mozambican government.
