Former Mozambique finance minister, Manuel Chang, received an eight-and-a-half-year prison sentence on Friday in a New York court, having already served six years in detention in the United States and South Africa.
Chang was convicted in August of the previous year for his involvement in the “hidden debt” corruption scandal that led to a significant economic crisis in Mozambique.
He was found guilty of accepting $7 million in bribes in return for approving approximately $2 billion in undisclosed loans to state-owned enterprises from prominent international banks.
These funds were intended for projects such as acquiring a tuna fishing fleet and enhancing maritime security.
However, the money was misappropriated through bribery and kickbacks, resulting in project failures and defaults by the companies involved.
This situation left investors facing substantial losses and Mozambique burdened with a $2 billion debt, which represented about 12 percent of its gross domestic product at that time.
Consequently, international donors, including the IMF and the World Bank, temporarily suspended their support for the country, leading to a currency crisis and financial instability.
During the court proceedings on Friday, Chang expressed remorse, stating that he initially believed the projects would benefit Mozambique but has since recognized the wrongdoing of his actions.
The judge granted Chang credit for the time he spent in custody prior to his trial.
As a result, he could be eligible for release from the U.S. prison and deportation to Mozambique in two and a half years.
Chang’s legal team has indicated plans to appeal the conviction.
