Former Mozambique Finance Minister Convicted in U.S. Over $2 Billion "Tuna Bonds" Scandal

In a landmark decision, former Mozambique Finance Minister Manuel Chang was convicted in a U.S. court on Thursday for his involvement in a multi-billion-dollar fraud scheme that has been dubbed the "tuna bonds" scandal. The verdict, delivered by a federal jury in Brooklyn, New York, marks a significant moment in the fight against corruption and financial misconduct in one of Africa's poorest nations.
The case revolved around $2 billion in loans taken out by three state-owned companies in Mozambique between 2013 and 2016. These loans, issued by Credit Suisse and the Russian bank VTB, were intended to fund the development of Mozambique’s fishing industry, specifically for a fleet of tuna fishing ships, as well as for improving maritime security. However, the funds were largely misappropriated through bribes and kickbacks, leaving Mozambique with a crippling debt burden and sparking a financial crisis.
Prosecutors argued that Chang, who served as Mozambique's Finance Minister from 2005 to 2015, played a central role in the conspiracy. He was accused of approving government guarantees for the loans in exchange for $7 million in bribes, which were funneled through a Swiss bank account controlled by a friend. To conceal his involvement, Chang allegedly had other Mozambican officials communicate with the shipbuilding firm Privinvest about the payoffs.
The repercussions of the scandal were devastating for Mozambique. The projects funded by the loans collapsed, and the state-backed companies defaulted, leading to significant financial losses for investors. The International Monetary Fund (IMF) and other donors temporarily halted support to the country, triggering a currency collapse and widespread economic turmoil. The financial crisis plunged nearly two million Mozambicans into poverty and dealt a severe blow to the nation’s economic growth.
In her closing arguments, Assistant U.S. Attorney Genny Ngai highlighted the severity of Chang's actions, stating that he prioritized his financial gain over his official responsibilities. "He cared about money over his position," Ngai told the court.
The "tuna bonds" scandal is considered one of the largest corruption cases on the African continent, with global implications. Two Credit Suisse bankers pleaded guilty in 2019 and testified against Chang during the trial. In 2021, Credit Suisse agreed to pay $475 million to settle related bribery and fraud charges in the United States and the United Kingdom.
Mozambique also pursued legal action, and on July 29, 2024, the country won the bulk of its $3.1 billion lawsuit in London’s High Court against Privinvest. The court found that the company had paid bribes to Mozambican officials and Credit Suisse bankers to secure favorable loan terms. Privinvest has stated its intention to appeal the ruling.
Following the conviction, Breon Peace, the U.S. Attorney for the Eastern District of New York, hailed the verdict as a triumph for justice. "Today’s verdict is an inspiring victory for justice and the people of Mozambique who were betrayed by the defendant, a corrupt, high-ranking government official whose greed and self-interest sold out one of the poorest countries in the world," Peace said in a statement.
Chang’s defense team, led by lawyer Adam Ford, announced plans to appeal the verdict, arguing that Chang was simply following orders from Mozambique’s president and that there was no evidence he personally benefited from the $7 million bribe.
Chang now faces the possibility of up to 20 years in prison, though the exact sentencing will depend on various factors, including his prior history and the specifics of the case. As Mozambique continues to grapple with the fallout from the scandal, the conviction of a key figure like Chang may bring some measure of accountability and hope for a more transparent future.
The case underscores the global nature of financial corruption and the importance of international cooperation in bringing perpetrators to justice. While Mozambique continues to rebuild its economy, the world watches closely as the nation seeks to recover from one of the most significant financial scandals in its history.
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