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Manuel Chang Mozambique ex-minister extradited to U.S. for fraud
 
By: Abara Blessing Oluchi
Thu, 13 Jul 2023   ||   South Africa,
 

South Africa has handed over to the United States former Mozambique’s finance minister, Manuel Chang, who has been detained since 2018.

He was extradited to the United States from South Africa on Wednesday to face charges for his alleged role in a $2 billion debt scandal, the South African justice ministry said.

Chang, who has denied wrongdoing, was first arrested by South Africa in 2018 at the request of the United States on charges of money laundering and conspiracy to commit fraud.

Mozambique subsequently also requested his extradition, and the two countries fought over possession of Chang via both the courts and diplomatic channels. South Africa’s constitutional court denied Mozambique leave to appeal in a final decision in May.

“The Ministry of Justice and Correctional Services confirms that the Republic of South Africa’s law enforcement agencies successfully surrendered Mr Manuel Chang to the United States of America on July 12, 2023,” a ministry statement said.

Chang is scheduled to be arraigned before U.S. District Judge Nicholas Garaufis in Brooklyn on Thursday at 3:30 p.m. EDT (1930 GMT), according to the judge’s calendar.

The U.S. charges relate to loans obtained from Credit Suisse and Russia’s VTB Bank (VTBR.MM) that were guaranteed by the Mozambique government and signed off by Chang during his 2005-2015 term as finance minister.

Hundreds of millions of dollars of the money went missing and the projects the loans were ostensibly for never delivered on their promises.

U.S. authorities say the borrowing was fraudulent and the projects, spanning tuna fishing, shipyard development and maritime security, a front for an elaborate bribery and kickback scheme.

When the full extent of the borrowing was revealed in 2016, it prompted donors including the International Monetary Fund to cut off support to Mozambique and triggered a currency collapse and debt default.

 

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