South African police have confirmed that Manuel Chang, the former Finance Minister of Mozambique, will be extradited to the United States to face fraud and corruption charges.
Chang has been in custody in South Africa since December 2018.
During his tenure as Mozambique’s finance minister, the country guaranteed over $2 billion in secret loans by state-owned firms, leading to a major corruption scandal and subsequent economic collapse.
The funds were allegedly used for various purposes, including the purchase of a large tuna factory, earning the scandal the nickname “tuna bond” scandal.
Last year, 11 individuals, including the son of Mozambique’s former president, were convicted of embezzlement and money laundering in connection with the same scheme. However, Chang maintains his innocence.
It is now understood that Chang will be escorted by FBI officials from Lanseria airport in Johannesburg to New York, where he will stand trial. The Mozambican authorities had sought to have Chang returned to Mozambique for trial rather than being extradited to the US.
According to South African authorities, Chang is expected to face charges in the US related to loans acquired from Credit Suisse and Russia’s VTB bank, which were guaranteed by the Mozambican government.
Some of these loans were not properly disclosed and were authorized by Chang during his tenure as finance minister from 2005 to 2015.
The US has indicted Chang, alleging his involvement in the misappropriation of funds that were invested by American investors.