A former Mozambique finance minister was convicted on Thursday in the U.S. on charges related to a $2 billion fraud involving loans for the nation’s fishing industry.
Manuel Chang was found guilty of conspiracy to commit wire fraud and money laundering in the “tuna bonds” case after a three-week trial in Brooklyn, New York.
Following his conviction, Chang intends to appeal, according to his defense attorney, Adam Ford.
Prosecutors revealed that Chang received $7 million in bribes from shipbuilding firm Privinvest for approving government guarantees on loans from Credit Suisse and Russian bank VTB.
Prosecutors also claimed Chang used a Swiss bank account and coordinated with other officials to hide the bribes.
The projects failed, and the companies defaulted, causing substantial investor losses and halting international aid, which led to financial instability in Mozambique.
Breon Peace, the lead prosecutor, called the verdict a triumph for justice, denouncing Chang as a corrupt official who betrayed one of the world’s poorest countries.
Ford countered that Chang’s actions were sanctioned by the country’s president and argued the $7 million was not for Chang.
Credit Suisse, now part of UBS, settled for $475 million in 2021 over bribery and fraud claims.
Mozambique recently won a significant portion of a $3.1 billion lawsuit against Privinvest in London for alleged bribery.
Privinvest plans to appeal, disputing the bribery claims and the damages.
