Former Finance Minister of Mozambique sentenced for $2B in fraud schemes

The Former Finance Minister of Mozambique has been sentenced for his part in an elaborate and brazen money laundering and fraud scheme totaling a reported $2 billion.

Manuel Chang, of Mozambique, also faced charges that his actions led to the defrauding of investors, including those in the United States, of substantial amounts. The former Finance Minister of Mozambique was sentenced today to 102 months in prison for his role in the scheme.

The Federal Bureau of Investigations (FBI) New York Field Office carried out the case against Chang, with the Justice Department’s Office of International Affairs providing substantial assistance.

Internationally, the South African Department of Justice and Constitutional Development and the South African Police Service, as well as authorities in the United Kingdom, Switzerland, Spain, and Portugal, contributed to the case against Chang.

Former Finance Minister of Mozambique sentenced for $2B fraud

Chang, in his position as Foreign Minister, “received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three loans for maritime projects,” said the evidence presented in court.

He then diverted more than $200 million of the loan proceeds to “pay bribes and kickbacks,” among other illicit uses of the funds. This was despite Chang and his co-conspirators falsely telling banks and investors that the loan proceeds would be used for the projects and not” to pay bribes to government officials.”

During 2013 and 2015, Chang, together with his co-conspirators (including Privinvest Group, a United Arab Emirates-based shipbuilding entity) arranged for loans of more than” $2 billion to be extended to companies owned and controlled by the Mozambican government: Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM).”

Prinivest’s central involvement was developing new shipbuilding and tuna fishing interests and investments in Mozambique. It has been found that the company used the loans acquired to bribe officials of the Mozambique government into guaranteeing the loans, and Chang, in his elected position, facilitated Privinvest’s diversion of more than $200 million of the loan proceeds.

This led to international parties being shortchanged after the companies defaulted on $700 million in loan payments, causing substantial losses to investors, including those in the United States.

Chang was previously convicted at trial in August 2024 for one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering and to forfeit $7 million.

Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division, said of the sentencing that “Chang’s brazen misconduct betrayed his duty to the people of Mozambique and defrauded investors, including those in the United States, of substantial amounts. With today’s sentence, Chang has been held accountable for his violations of U.S. law.”

Image: Pexels.

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