Former finance minister of Mozambique, Manuel Chang, has faced legal consequences for his involvement in a major financial scandal. The 69-year-old was sentenced to an additional two-and-a-half years in prison by a U.S. court for his part in the "tuna bond" controversy, which led to significant economic turmoil in the African country. Chang was found guilty last year of accepting bribes and secretly obligating his nation to approximately $2 billion in loans from international banks.
Judge's decision reflects the gravity of Chang's actions. On Friday, a federal judge in New York imposed an eight-and-a-half-year sentence on Chang, taking into account the nearly six years he has already spent in custody in both the U.S. and South Africa. During his court appearance, Chang expressed remorse through an interpreter, stating that he deeply regrets the harm caused by his actions. He also requested compassion from the judge, emphasizing the harsh conditions he endured during his imprisonment in South Africa and his desire not to die in a foreign prison far from his family.
The repercussions of this scandal extend beyond Chang's personal fate. The misappropriation of funds intended for maritime projects, including a tuna fishing fleet and Coast Guard vessels, resulted in widespread financial distress. Prosecutors revealed that Chang received $7 million in bribes, with over $200 million diverted through corrupt practices. This deception left Mozambique with a staggering $2 billion debt, equivalent to about 12% of its GDP at the time. The fallout plunged the country into financial instability, forcing nearly 2 million Mozambicans into poverty and leading to cuts in government services, economic stagnation, inflation, and a decline in international investment and aid.
The aftermath of this crisis highlights the importance of transparency and accountability in governance. While justice is being served through the conviction of those involved, including Chang and others, it underscores the need for stronger measures to prevent such scandals. Mozambique's ongoing negotiations with creditors to address the debt reflect a commitment to rebuilding trust and stability. This case serves as a reminder of the critical role ethical leadership plays in safeguarding a nation's financial health and prosperity.