Ex-minister of finance for Mozambique found guilty in US over “tuna bonds” controversy
A former finance minister of Mozambique was found guilty on Thursday of violating US criminal laws after it was claimed that he had participated in a scheme to defraud three state-owned businesses of $2 billion in loans intended to boost the country’s fishing sector.
After a three-week trial in federal court in Brooklyn, New York, jurors convicted Manuel Chang guilty of conspiracy to conduct wire fraud and conspiracy to commit money laundering in the “tuna bonds” case.
Reporters were informed outside the courthouse by defendant attorney Adam Ford that Chang intends to appeal the decision.
In exchange for issuing a Mozambique government guarantee for loans to three state firms to expand the African nation’s fishing sector and enhance marine security, the prosecution claims that shipbuilding company Privinvest paid Chang $7 million in bribery.
Credit Suisse and the Russian bank VTB provided the financing.
In an effort to hide his tracks, Chang had other Mozambican officials speak with Privinvest about the payoffs after receiving the money in a Swiss bank account managed by a friend, according to the prosecution.
Investors lost millions of dollars when the projects finally failed and the state-backed businesses stopped making loan payments.
A currency crash and financial chaos were caused by temporary suspension of financing by donors like the International Monetary Fund.
“Today’s verdict is an inspiring victory for justice and the people of Mozambique,” said Breon Peace, Brooklyn’s top federal prosecutor, in a statement.
Peace described Chang as “a corrupt, high-ranking government official whose greed and self-interest sold out one of the poorest countries in the world.”
Ford contended that there was no proof the $7 million was meant for Chang and that his client only authorized the Mozambican government guarantee because the president of the nation asked him to.
“That money never went to Minister Chang,” Ford declared during Monday’s closing remarks.
2019 saw the guilty pleas of two Credit Suisse bankers, who later testified against Chang during the trial.
At a 2019 Brooklyn trial, Privinvest salesperson Jean Boustani, a co-defendant, was found not guilty when he said he was not involved in packaging the loans for investors.
From 2013 to 2016, authorities and bankers allegedly embezzled $200 million of the $2 billion in funding obtained for the projects, according to the prosecution.
In order to settle the bribery and fraud accusations, Britain and the United States will get $475 million from Credit Suisse, which was purchased by rival Swiss bank UBS (UBSG.S), opens new tab.
On July 29, Mozambique won the majority of its $3.1 billion case against Emirati-Lebanese Privinvest in London’s High Court. Privinvest was accused of paying bribes to Credit Suisse bankers and Mozambican authorities in order to get advantageous conditions.
According to a Privinvest representative, the corporation will file an appeal against the court’s decision that it gave Chang bribes and believes that paying hundreds of millions of dollars in damages would be unjust.
