Mozambique ex-minister extradited to US to face debt scandal charges

Mozambique's former finance minister, Manuel Chang, was extradited to the US from South Africa on Wednesday to face charges for his alleged role in a $2bn debt scandal, the South African justice ministry said.

Chang, who has denied wrongdoing, had been detained in South Africa since 2018, when he was arrested at the request of the US on charges including money laundering and conspiracy to commit fraud.

Mozambique subsequently also requested his extradition, and the two countries fought over possession of Chang via both the courts and diplomatic channels. South Africa's constitutional court denied Mozambique leave to appeal in a final decision in May.

“The ministry of justice and correctional services confirms South Africa's law enforcement agencies successfully surrendered Mr Manuel Chang to the US on July 12,” a ministry statement said.

Chang is scheduled to be arraigned before US district judge Nicholas Garaufis in Brooklyn on Thursday, according to the judge's calendar.

The US charges relate to loans obtained from Credit Suisse and Russia's VTB Bank that were guaranteed by the Mozambique government and signed off by Chang during his 2005-2015 term as finance minister.

Hundreds of millions of dollars of the money went missing and the projects the loans were ostensibly for never delivered on their promises. US authorities say the borrowing was fraudulent and the projects, spanning tuna fishing, shipyard development and maritime security, a front for an elaborate bribery and kickback scheme.

When the full extent of the borrowing was revealed in 2016, it prompted donors including the International Monetary Fund to cut off support to Mozambique and triggered a currency collapse and debt default.

Reuters