Here is the rewritten article in Markdown format:
Latest Financial Fraud Cases in Mozambique: Former Minister on Trial in US Court
The “tuna bond” scandal that rocked Mozambique’s economy has finally made its way to a US court, where a former finance minister is being tried on charges of accepting bribes to commit his country to massive loans.
The Charges
Manuel Chang, who served as Mozambique’s top financial official from 2005 to 2015, is accused of “abusing his authority to enrich himself through bribery, fraud and money laundering” by Assistant US Attorney Peter Cooch. He has pleaded not guilty to conspiracy charges, with his defense lawyer Adam Ford arguing that there is no evidence he agreed to take payoffs or received a penny in exchange for guaranteeing the loans.
The Scandal
Prosecutors claim that between 2013 and 2016, three Mozambican-government-controlled companies borrowed $2 billion from major overseas banks, with the government, led by Chang, assuring repayment. However, they allege that huge chunks of the loan proceeds went towards bribes and kickbacks to bankers and government officials, including $7 million wired through US banks to accounts in Europe under an associate’s name.
The Impact
The scandal had a devastating impact on Mozambique’s economy, leading to financial crisis, currency devaluation, inflation, and foreign investors pulling out. The country is now one of the poorest nations globally, with GDP per capita among the lowest worldwide.
Settlements and Court Action
Mozambique has reached out-of-court settlements with creditors, paying $142 million back to Credit Suisse and reaching a $220-million settlement with Russia’s VTB Bank and Portugal’s BCP Bank. The scandal has also led to court action in Africa and Europe, as well as the US.
The Trial
Chang was arrested at Johannesburg’s main international airport in 2018 before being brought to the US last year. His lawyers have tried to get the case thrown out, arguing that prosecutors overshot the reach of US securities law and that Chang is immune from prosecution as a former foreign official. However, Judge Nicholas Garaufis has denied these claims, paving the way for the trial to proceed.
Key Facts
- Manuel Chang, former Mozambican finance minister, is on trial in a US court
- He is accused of accepting bribes to commit his country to massive loans
- The scandal led to financial crisis, currency devaluation, inflation, and foreign investors pulling out
- Mozambique has reached settlements with creditors worth $362 million
- The trial is ongoing