The loans were intended to develop the country’s marine infrastructure but instead plunged Mozambique into a financial crisis.

Chang’s conviction, which followed a four-week trial in Brooklyn, exposed how loans were guaranteed without parliamentary approval, earning the case its moniker as the "hidden debts scandal." According to Sidonio Tembe from the Budget Monitoring Forum, this lack of oversight was central to the case. “The debts did not pass through parliament. The volume of the amounts, nearly $2 billion, should never have been approved without proper scrutiny,” he said.

Evidence presented during the trial revealed that Chang accepted bribes totalling $7 million to facilitate the illegal approvals. Tembe explained, “Chang played a key role in approving these loans backed by public guarantees without following due process. This paved the way for widespread corruption and financial mismanagement.”

The scandal stemmed from the creation of public companies, including Ematum, which were meant to bolster Mozambique’s tuna industry and support public finances. However, the plan quickly unravelled. “On paper, it seemed like a viable project to support the economy,” Tembe said. “But the equipment purchased, including boats, was overpriced and not fit for purpose, making the project unsustainable from the start.”

Tembe further highlighted that the case brought Mozambique into international financial markets for the first time, albeit under negative circumstances. “This scandal has tainted Mozambique’s reputation on the global stage and revealed systemic corruption,” he noted.

While Chang’s sentencing marks a significant development, Tembe believes other high-ranking officials were also involved. “Documents suggest the involvement of senior government officials, including the former defence minister and the son of the former president. It’s unlikely Chang acted alone in a project of this scale, given its implications for national sovereignty,” he said.

--ChannelAfrica--