Mozambique's Finance Scandal: Former Minister Sentenced in $2 Billion Fraud

Manuel Chang, former Mozambican finance minister, has been sentenced to 8-1/2 years for his involvement in a $2 billion loan fraud. The scheme, linked to the 'tuna bonds' case, led to massive financial losses and turmoil. Chang, citing regret, plans to appeal the conviction.

In a significant judgment, former Mozambican finance minister Manuel Chang was sentenced to 8-1/2 years in prison for a $2 billion financial fraud. Chang, 69, was found guilty by a Brooklyn jury in August for his role in the infamous 'tuna bonds' scandal.

U.S. District Judge Nicholas Garaufis, who issued the ruling, acknowledged the six years Chang spent in custody, recommending a more lenient prison term with considerations for time already served. The scandal involving loans to develop Mozambique's marine infrastructure left many investors in financial distress.

The financial fallout was severe—triggering a currency collapse and forcing international donors to suspend aid temporarily. Chang, expressing remorse, plans to appeal his conviction, while Credit Suisse settled similar charges in 2021 with hefty penalties.

(With inputs from agencies.)