Ex-Mozambique Finance Minister Found Guilty in $2 Billion 'Tuna Bonds' Fraud

Former Mozambique Finance Minister Manuel Chang was convicted in a U.S. court for his involvement in a $2 billion loan fraud aimed at developing Mozambique's fishing industry. The scheme, involving multiple state-owned companies, collapsed and triggered financial turmoil in the country. Chang plans to appeal the verdict.

In a significant legal turn, former Mozambique Finance Minister Manuel Chang was convicted on Thursday on U.S. criminal charges linked to a $2 billion loan fraud concerning the development of Mozambique's fishing industry. The case, heard over three weeks in Brooklyn's federal court, saw jurors find Chang guilty of conspiracy to commit wire fraud and money laundering.

The 'tuna bonds' case revealed that shipbuilding firm Privinvest paid Chang $7 million in bribes to secure government guarantees for loans, leading to the default of state-owned companies and severe financial instability. Prosecutors highlighted the collapse of maritime projects financed by Credit Suisse and VTB, leaving investors with significant losses and prompting international donors to withdraw support.

This landmark verdict has been hailed by Brooklyn's top prosecutor, Breon Peace, who emphasized the breach of trust by a high-ranking official in one of the world's poorest nations. Despite the conviction, Chang's defense lawyer, Adam Ford, announced plans to appeal, challenging the evidence linking Chang directly to the bribes.

(With inputs from agencies.)