S. Africa to extradite former Mozambique finance minister

By Hassan Isilow

JOHANNESBURG (AA) - South Africa’s Justice Department confirmed Tuesday that it will extradite Mozambique’s former Finance Minister Manuel Chang who was arrested in 2018.

Chang, who is accused of money laundering, fraud and embezzlement, was arrested at the OR Tambo International Airport on requests by the US. He has since been in custody, Justice Department spokesman Chrispin Phiri confirmed in a statement.

The agency said at the time of Chang’s arrest that he was a Mozambique MP and enjoyed immunity, according to that country’s laws and therefore could not be prosecuted.

The statement said as it stands now, Chang is no longer an MP and has no immunity and the government in Mozambique wants him extradited to face prosecution.

“The accused will therefore be handed over to Mozambican authorities to stand trial on the following charges in Mozambican law: Abuse of position and function; Violation of budget laws; Fraud by deception; Embezzlement; and Money Laundering among others,” said the agency.

Chang served as finance minister between 2005 and 2015 under former President Armando Guebuza and reportedly colluded with other officials, including the former president’s son, to get $2.2billion in fraudulent loans from international investment banks to front projects, including the development of a tuna fishing boat fleet.

That happened between 2013 and 2014 without the approval of parliament which meant the government was used as a guarantor and would pay back the loans if the companies failed.

The government only announced the scandal in 2016 after it realized $500 million from the debt was unaccounted for and another $200 million was paid in bribes.

The Southern African nation that heavily depends on international funding to support its budget was badly affected after several funders withdrew support because of the scandal. Its currency also lost value as a result, affecting the economy.