Justice Department Says Trial starts over $2bn Mozambique Debt Scandal

A criminal trial over the $2 billion debt scandal that crashed Mozambique’s economy began on Monday August 23.

South Africa will extradite former Mozambique finance minister Manuel Chang to his home country, its justice department said on Monday.

Chang, who denies wrongdoing, and 19 others including state security officials and a former president’s son face charges including blackmail and embezzlement for their alleged roles in the disappearance of hundreds of millions of dollars in government-backed loans.

A total of $2 billion in borrowing was ostensibly raised for a project spanning tuna fishing, shipyard development and maritime security. But vast sums were paid out in kickbacks, authorities say, while many promised benefits never materialised.

Chang, who signed off on the loans during his 2005-2015 term as finance minister, has been held in South Africa since 2018 after being arrested at the request of the United States, which also opened a criminal case over the affair.