Mozambique’s ex-minister of finance, Manuel Chang has made a court appearance in Johannesburg earlier today over a loan scandal
It was learnt that Chang who is being accused by US authorities of conspiracy to commit wire fraud, securities fraud and money laundering was arrested on December 29,2018 at the city’s airport over a series of alleged secret loans to Mozambican state companies totalling $2 billion.
Between 2013 and 2014, Mozambique state-owned security companies borrowed about $2 billion (1.75 billion euros), but the government only disclosed most of the debt to the International Monetary Fund (IMF) in 2016.
The hidden debt plunged Mozambique into its worst financial crisis since independence in 1975.
“Detention of Mr. Chang is illegal because his arrest was effectively on terms of an ineffective warrant,” Willie Vermeulen, Chang’s lawyer, told the court.
Public prosecutor, Elivera Dreyer applied for the case to be postponed. Judge Sagra Subroyen agreed, saying she would hand down a ruling on Wednesday.
US prosecutors allege that Chang received $12 million to agree to signing the loan agreements. About $200 million was spent on bribes and kickbacks, according to the US indictment.
Chang, dressed in a dark jacket, dark shirt and jeans, did not speak during Tuesday’s hearing.
