By : Lloyd Mahachi
Manuel Chang, the former finance minister of Mozambique, has been sentenced to eight and a half years in prison by a New York court. Chang was convicted in August last year for his role in the “hidden debt” graft scandal that sparked an economic crisis in Mozambique.
The scandal involved Chang accepting $7 million in bribes in exchange for signing off on about $2 billion in secret loans to state-owned companies from major overseas banks. These loans were meant to fund projects such as the purchase of a tuna fishing fleet and improvements to maritime security.
However, the funds were instead plundered through bribes and kickbacks, causing the projects to collapse and the companies to default. This led to investors losing millions of dollars and Mozambique being left with a $2 billion debt, equivalent to about 12% of its gross domestic product at the time.
As a result, donors like the IMF and the World Bank temporarily halted support to the country, triggering a currency collapse and financial turmoil. The economic crisis had a devastating impact on the people of Mozambique, leading to widespread poverty and unemployment.
In court, Chang apologized for his actions, stating that he thought the projects would be good for Mozambique at the time, but has since realized his mistakes. The judge credited Chang for the six years he spent in custody awaiting trial, making him eligible for release and deportation to Mozambique after two and a half years.
Chang’s lawyers have announced plans to appeal the conviction. The case is a significant development in the global fight against corruption, demonstrating that foreign officials who engage in corrupt practices will be held accountable.
The “hidden debt” scandal has had far-reaching consequences for Mozambique, damaging the country’s reputation and undermining trust in its government. The sentencing of Manuel Chang is a step towards justice, but much work remains to be done to address the underlying issues that led to the scandal.
Mozambique’s government has taken steps to address the crisis, including implementing reforms to improve transparency and accountability. However, more needs to be done to restore the country’s economy and rebuild trust with its citizens and the international community.
The case against Manuel Chang serves as a reminder of the importance of holding public officials accountable for their actions. Corruption is a major obstacle to economic development and can have devastating consequences for individuals and communities.
Editor : Josephine Mahachi
