Banks Mozambique's former finance minister sentenced for fraud involving CS loans

The former finance minister of Mozambique, Manuel Chang, has been sentenced by a US court for his role in the fraud scandal surrounding the so-called "tuna bonds".

He is alleged to have embezzled large sums of the billion-euro loan arranged by Credit Suisse.

The court in Brooklyn found Chang guilty of fraud and money laundering on Thursday, as the US Department of Justice announced on Friday night. He is said to have accepted a seven million dollar bribe to sign state guarantees for a two billion dollar loan to the African country, which was intended, among other things, for the construction of a tuna fleet.

Chang, now 68, and his "co-conspirators" diverted a total of more than 200 million dollars of the loan to pay bribes and kickbacks for themselves and others, according to the statement. He not only abused the trust of the Mozambican people, but also caused high losses for investors in the USA and elsewhere, the court stated.

Prison sentence of up to 20 years

The loans and bonds brokered by Credit Suisse and another institution to the African country between 2013 and 2015 were taken out without the knowledge of the local parliament and the International Monetary Fund (IMF). They subsequently plunged Mozambique into a severe debt crisis.

Chang was extradited from South Africa to the USA in 2023 after being arrested there in 2018. Following his conviction in the USA, he now faces a maximum prison sentence of 20 years. His lawyer had already announced to several media outlets on Friday night that he would appeal against the sentence.

Already numerous trials

The scandal surrounding the "tuna bonds" has already led to several lawsuits around the world. Former employees of Credit Suisse, which has since been taken over by UBS, are also alleged to have enriched themselves massively when granting loans. As a result, two former CS employees pleaded guilty to money laundering in the case before the US judiciary.

In 2021, CS agreed to a settlement of a payment of around 475 million dollars to the authorities in the US and the UK. It also forgave the African country debts amounting to 200 million dollars. Last fall, UBS also reached an out-of-court settlement with Mozambique in a civil case at the High Court in London.