MAPUTO – South Africa will extradite former Mozambican finance minister Manuel Chang to his country of origin, the Ministry of Justice announced on Monday, where a criminal case has been opened over the $2 billion debt scandal of dollars that caused its economy to plummet.
Chang, who denies any wrongdoing, and 19 others, including state security agents and the son of a former president, are charged with their alleged role in the disappearance of hundreds of millions of dollars in secured loans by the state, including racketeering and embezzlement.
A total of $2 billion in loans have reportedly been raised for a project involving tuna fishing, shipyard development and maritime security. But huge sums were paid in bribes, authorities say, while many promised benefits never materialized.
Chang, who signed the loans during his tenure as Treasury Secretary from 2005 to 2015, has been detained in South Africa since 2018 after being arrested at the request of the United States, which has also opened a criminal investigation into the case.
Mozambique then also requested his extradition, leading to a court battle that ultimately left the decision in the hands of Justice Minister Ronald Lamola.
Lamola decided to bring Chang back to Mozambique after allaying concerns about whether he was safe from prosecution, Lamola’s ministry said in its statement.
“The accused will therefore be handed over to the Mozambican authorities for trial,” he said.
It was not immediately clear whether Chang would be able to attend this stage of the trial, which began on Monday, or face a separate trial.
Chang’s attorney did not respond to a request for comment.
The case had a profound impact on the economy. Not all loans were disclosed to Parliament or to donors such as the International Monetary Fund.
In 2016, when the extent of the borrowing became known, it prompted donors to end their support and triggered a monetary collapse.
Mozambique, one of the poorest countries in the world, currently remains dependent on silver.
Ana Sheila, Mozambique’s assistant national prosecutor, said prosecutors are seeking harsh sentences for the other 19 defendants and $2.9 billion in damages, including interest.
“The actions of the defendants have placed the country in a serious financial situation and discredited it internationally,” she said in a makeshift courtroom built from a tent on the grounds of a maximum security prison outside the capital, Maputo.
Defense attorneys for six of the 19, including Armando Ndambi Guebuza, son of former president Armando Guebuza who will testify later, said their clients denied wrongdoing.
Others, who have not yet had the opportunity to speak directly about the allegations against their clients, had previously pleaded for their release and said they were acting on behalf of the state.
