The funds were intended for three state-owned companies to advance the country’s fishing industry.
Manuel Chang was convicted by jurors of conspiracy to commit wire fraud and money laundering in the “tuna bonds” case after a three-week trial in federal court in Brooklyn, New York.
Defense lawyer Adam Ford informed reporters that Manuel Chang plans to appeal the verdict.
Prosecutors alleged that shipbuilding firm Privinvest bribed Chang with $7 million to secure a Mozambique government guarantee for loans from Credit Suisse and Russian bank VTB.
These loans were intended for three state companies to develop Mozambique’s fishing industry and enhance maritime security.
According to prosecutors, Chang received the bribe funds in a Swiss bank account controlled by a friend and had other Mozambican officials interact with Privinvest to hide the payments.
The failed projects led to defaults on loans by state-backed companies, causing significant investor losses.
The crisis prompted donors, such as the International Monetary Fund, to halt support, triggering a currency collapse and severe financial instability.
Breon Peace, the chief federal prosecutor in Brooklyn, described the verdict as “a significant victory for justice and the people of Mozambique,” branding Chang as “a corrupt high-ranking official who betrayed one of the world’s poorest nations.”
In contrast, defense lawyer Adam Ford contended that Chang approved the Mozambique government guarantee at the behest of the country’s president and asserted there was no proof that the $7 million was meant for Chang personally.
In his closing argument, Ford asserted, “That money never went to Minister Chang.” Two Credit Suisse bankers, who pleaded guilty in 2019, testified against Chang during the trial.
Another co-defendant, Privinvest salesman Jean Boustani, was acquitted in a 2019 Brooklyn trial after he testified that he was not involved in structuring the loans for investors.
Prosecutors revealed that officials and bankers embezzled $200 million of the $2 billion raised for the projects between 2013 and 2016.
In 2021, Credit Suisse, which was acquired by Swiss rival UBS, agreed to pay $475 million to the U.K. and the U.S. to settle related bribery and fraud charges.
On July 29, Mozambique won most of its $3.1 billion lawsuit in London’s High Court against Privinvest, an Emirati-Lebanese firm, for allegedly bribing Mozambican officials and Credit Suisse bankers to secure promising terms.
A Privinvest representative announced plans to appeal the court’s decision, arguing that it would be unjust to pay hundreds of millions of dollars in damages.