Manuel Chang, a former finance minister of Mozambique, was sentenced to eight and a half years in prison on January 17, 2025, for his involvement in a fraud scheme linked to $2 billion in loans intended for three state-owned companies aimed at developing the country's fishing industry.
Chang, 69, was found guilty in August by a jury in Brooklyn, New York, on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering in a case known as the "tuna bonds" scandal, following a four-week trial.
The sentence was handed down by Federal Judge Nicholas Garaufis, who recommended that Chang receive credit for the approximately six years he spent in custody awaiting trial. This suggests he could be released from U.S. prison and deported to Mozambique after serving two and a half years of his sentence.
Prosecutors from the U.S. Attorney's Office in Brooklyn had sought a sentence between 11 years and 14 years in prison.
In a submitted document, prosecutors stated, "The defendant, a corrupt public official, placed his own country, with limited resources, in a $2 billion debt situation with loans that ultimately could not be repaid, so that he and his accomplices could pocket tens of millions of dollars."
Chang's lawyers argued against prison time, claiming that their client had already spent over five years in custody, including four years in South Africa while awaiting extradition, and more than a year at the Metropolitan Detention Center in Brooklyn.
They contended, "This period of incarceration already served by a good and decent man, who was trying to do his best for his country, is more than sufficient."
Prosecutors indicated that the Emirati-Lebanese shipbuilding company Privinvest paid Chang $7 million in bribes in exchange for government guarantees for loans from banks, including Credit Suisse, for three state-supported companies.
The loans were intended for the development of Mozambique's fishing industry and maritime security improvement, but the projects failed, and the state-supported companies defaulted, leaving investors with millions in losses.
As a result, organizations such as the International Monetary Fund temporarily suspended support to Mozambique, triggering a currency collapse and financial crisis.
Chang pleaded not guilty. His lawyers argued that he approved the government guarantees at the behest of Mozambique's president and that there was no evidence that the $7 million was intended for him. The former minister is expected to appeal the sentence.
Credit Suisse, which was later acquired by UBS, agreed in 2021 to pay approximately $475 million to U.S. and British authorities to resolve bribery and fraud allegations linked to the scandal. A European subsidiary pleaded guilty in the U.S. to conspiracy to commit wire fraud.
Last month, the High Court in London denied Privinvest permission to appeal a ruling allowing Mozambique to recover over $825 million from the former owner of the company and its subsidiaries. Privinvest intends to appeal, according to its lawyer.