Mozambique's ex-finance minister gets another 2.5 years behind bars in ‘tuna bonds' corruption case

NEW YORK — Mozambique's former finance minister has been sentenced to serve another two-and-a-half years in prison by a U.S. court for his role in the '' tuna bond '' scandal that triggered a financial crisis in the struggling African nation.

Manuel Chang, 69, was convicted last year of accepting payoffs to put his homeland secretly on the hook for about $2 billion in loans from major overseas banks.

A federal judge in New York on Friday sentenced Chang to eight-and-a-half years in prison, including nearly six years he has already served behind bars in the U.S. and South Africa, where he was arrested in 2018.

Speaking through an interpreter, Chang told the court Friday that he has learned from his mistakes and is ''very disgusted'' with his conduct.

''I deeply regret the damage I have caused,'' he said. ''I am sorry.''

Chang also implored the judge to have ''compassion,'' citing his years incarcerated in deplorable conditions in South Africa that he said exacerbated his diabetes and other health problems.

''I would not like to die here in a prison in a foreign country, far away from my family,'' he said.

Instead, bankers and government officials plundered the funds through bribes and kickbacks, according to prosecutors.

During the trial, prosecutors said Chang pocketed $7 million in bribes, which they said was wired through U.S. banks to European accounts. In total, Chang and other participants diverted more than $200 million, defrauding investors in the U.S. and elsewhere by misrepresenting how the loan proceeds would be used and causing them to suffer substantial losses, prosecutors said.

Chang's lawyers argued that there was no evidence of a financial quid-pro-quo.

They maintained he was simply doing as his government wished when he signed off on pledges that Mozambique would repay the loans, which were borrowed by three government-controlled companies between 2013 and 2016.

When the companies defaulted, Mozambique was stuck with a $2 billion debt, or roughly 12% of the nation's gross domestic product at the time.

Nearly 2 million Mozambicans were forced into poverty by some estimates. The government slashed services, growth stagnated, inflation surged, the currency plummeted, and international investment and aid dried up.

Chang, who fought extradition for years until he was brought to the U.S. in 2023, could have received up to 20 years in prison.

But his lawyers called for him to receive no further prison time, telling the court Friday that he played a relatively ''minor role'' in the loan scheme.

They also claimed Chang had never benefited from his ill-gotten gains, which were later returned to the Mozambican government.

''He's been punished enough,'' said defense lawyer Adam Ford.

''He stole from his country and caused the crisis that crippled it,'' said Jonathan Siegel, an assistant U.S. attorney.

In handing down the sentence, Judge Nicholas Garaufis agreed, adding that Chang played a ''central role'' in the graft as he signed the financial documents that obligated his government.

''He had a fiduciary duty to make sure these loans were in the best interest of his country,'' said Garaufis, who also ordered Chang, over his lawyers' objections, to forfeit $7 million.

The judge said his sentence took into account Chang's age, poor health and prior incarceration. He said he hoped Chang had a ''brighter future with his family'' when he is deported back to Mozambique after completing his sentence.

Chang's lawyers declined to comment after the hearing other than to say they intend to appeal.

Meanwhile, Mozambique continues to grapple with the scandal's fallout.

The country, which was one of the world's 10 fastest-growing economies in the years leading up the scandal, has been negotiating with creditors to pay down the debt.

At least 10 people have been convicted and sentenced to prison in Mozambican courts, including the son of the country's former president, Armando Guebuza.

Two British bankers have also pleaded guilty in the U.S. case, and Credit Suisse agreed to pay at least $475 million to British and U.S. authorities over its role in the loans.

This week, Daniel Chapo was inaugurated as Mozambique's new president. In his acceptance speech, he acknowledged the country still faces daunting challenges following disputed elections and deadly unrest.

___