SAGRA SUBRAYEN CONFIRMS ARREST OF MANUEL CHANG, ORDERS EXTRADITION TO US

Major Development in “Ghost Loans” Case

Magistrate Sagra Subrayen has confirmed the arrest of Mozambican national Manuel Chang and ordered his extradition to the United States. This decision comes after Chang’s defense team appealed against his arrest, but Subrayen ruled in favor of the U.S. Justice Department’s demand for his extradition.

Background on the “Ghost Loans” Case

The “ghost loans” case is considered one of the biggest corruption scandals in sub-Saharan Africa since the 1960s. Chang, a former Deputy Minister of Finance and Economy, was arrested in South Africa in connection with the fraud, which involved $2 billion in loans from Credit Suisse and VTB to Mozambique’s state-controlled companies.

Chang’s Alleged Involvement

The scandal has implicated high-ranking officials in Mozambique’s government, including former President Armando Guebuza. Chang is accused of embezzling millions of dollars from the loan proceeds and distributing them as commissions and kickbacks to politicians and senior bureaucrats.

Consequences for Mozambique’s Government

Mozambique’s justice minister, Michael Masutha, will make the final determination on Chang’s extradition. However, the ruling could have significant implications for Mozambique’s government, which has been under pressure to address corruption and improve its financial management.

• The case has also sparked fears of political instability in Mozambique ahead of general elections later this year.
• Opposition parties have been criticized for their lack of enthusiasm about the scandal, with some analysts suggesting that it could be a missed opportunity to hold corrupt officials accountable.

Civil Society Groups’ Response

However, civil society groups and independent media outlets are calling for greater transparency and accountability in the case. They believe that Chang’s extradition could be a crucial step towards reversing Mozambique’s financial and economic predicament and securing international assistance.

• The ruling has also raised concerns about President Filipe Nyusi’s ability to address corruption within his own party.
• Analysts say he holds the key to a successful outcome, as he could use the scandal to clean house and lead a fight against corruption.

Risk of Retaliation

However, if Nyusi fails to take decisive action, Mozambique faces the risk of retribution from the U.S., IMF, and international donors, which could further destabilize the country’s economy.